Creating an estate plan is not a one-time task; it requires regular updates to stay effective as your life changes. To ensure your estate plan works for you no matter what, I recommend reviewing it with your attorney at least every three years. However, certain life events necessitate an immediate review to update your plan accordingly.
Last week, we explored the first five of 10 life events that might affect your estate plan. This week, we cover five more.
6. You became seriously ill or injured: A sudden illness or injury can leave you incapacitated, unable to manage your affairs. It’s crucial to review your estate plan to ensure it includes powers of attorney for healthcare and finances. These documents let you name someone you trust to manage your assets and make medical decisions if you can’t speak for yourself. Including healthcare directives in your plan can further detail your healthcare preferences, such as dietary restrictions, religious beliefs and limits on certain treatments.
7. You moved here from another state: Each state has unique estate planning laws. If you moved from another state, have your plan reviewed by a local attorney. Your existing plan might not comply with the new state’s requirements for signing, witnessing or procedural terms, potentially causing delays or court reviews.
8. You got married: Marriage brings joy and important legal updates. Your estate plan should reflect your new marital status. Some states automatically make your spouse a co-owner of certain properties, but this doesn’t always ensure an easy transfer upon death. To secure your spouse’s inheritance, update beneficiaries and make arrangements for shared assets. Create provisions to protect your spouse financially and emotionally in case of your passing.
9. You got a divorce: Divorce requires immediate attention to your estate plan. Post-divorce, you’ll likely need to revoke and redo your entire plan. This includes creating a new will and trust, updating beneficiary designations on life insurance and retirement accounts, and revising asset distribution to reflect your new circumstances. If you have children from your previous marriage, revisit guardianship arrangements and ensure their financial needs are met.
10. The law changed: Changes in tax laws, particularly estate tax exemptions, can impact your estate plan significantly. Review your plan with an attorney to minimize tax burdens and protect your wealth for your loved ones. Upcoming federal estate tax law changes in 2026 may affect your estate tax filing status, potentially costing your family significant amounts in taxes, which can be avoided with proper planning.
An estate plan is the foundation that protects your family and finances today and in the future. However, it should adapt and evolve with your life.
Send your questions to ccolan@colanlegal.com and use “Alpine Mountaineer estate planning question” as the subject. We’ll answer your questions in our upcoming issues.
This article is provided by your local estate planning attorney, Corina Colan.
The Law Office of Corina I. Colan / (909) 265-3315 / www.colanlegal.com
0 Comments