You Should Review Your Estate Planning If Any of the Following Things Happened Since You Created It
Do you have an estate plan? It is important to make sure that your plan still effectively achieves your goals and protects your best interests. Estate plans should be reviewed and, if necessary, revised, on a periodic basis. It is a good idea to sit down and take a look at your estate plan after major events in your life. Here, our New Jersey wills, trusts, and estate planning attorney highlight four common life changes that make it a good time to review your estate plan.
Four Common Life Changes that Require a Review of Your Estate Plan
- Marriage
Did you get married? You should review your estate plan. Marriage is one of the most important reasons to revisit your estate plan. You may want to add your spouse as a beneficiary, update your will, or create joint ownership arrangements. Without updates, your current documents might not reflect your intentions. A proper review ensures you and your spouse are best protected.
Note: Any change in marital status is a good time to review your estate plan. That includes a divorce. If you ended your marriage, you should be prepared to make changes.
- Birth of Child
The birth of a child introduces new responsibilities and requires immediate changes to your estate plan. You should name a guardian, update your beneficiaries, and consider establishing a trust to manage assets for your child. Your estate plan should reflect your priorities as a parent and provide clear instructions for your child’s care and financial security.
- Major Financial Change
A significant financial change, such as an inheritance, business sale, or major investment, can affect your estate plan. You may need to revise asset distributions, update tax strategies, or create new trusts to manage wealth. Leaving your plan unchanged could lead to unintended outcomes that are not truly in your best financial interests.
- New Health Issues
Serious health issues can impact both your estate planning and your need for advance directives. You should review or create powers of attorney and health care proxies to ensure the right person can make decisions on your behalf. A review helps clarify your preferences for health care and other key issues.
Best Practice: Review Estate Plan At Least Every Three to Five Years
Finally, it is also recommended that you review your estate plan on a periodic basis. As noted by Fidelity, it is widely considered to be a best practice to review an estate plan at least once every three to five years, even without significant life changes. Life small changes can be enough to warrant a revision to your estate plan. A careful review of the documents that you have in place can help to ensure that your estate plan is truly well-suited for your specific situation.
Speak to Our New Jersey Estate Planning Attorney Today
At Poulos LoPiccolo PC, our New Jersey estate planning lawyers put the best interests of people and families first. We handle all types of estate planning issues. If you have any questions about revising your estate plan, please do not hesitate to contact us today for a completely confidential initial consultation. We provide estate planning representation throughout New Jersey.
Source:
fidelity.com/life-events/estate-planning/update-estate-plan
