Creating An Estate Plan: Key Life Events That Merit A Review Of Your Estate Plan

Once you done the process of creating an estate plan, don’t put it away and forget it until near death.

When it comes to creating an estate plan, the events of the past few years have taught us there are a multitude of events that would necessitate significant changes to our plan.

In fact, your estate plan should be reviewed from time to time – at least every few years – to make sure it still reflects your wishes and your life circumstances.

Below are the major events that typically require an update to an estate plan:

1. Marriage or Divorce

The presence or absence of a spouse could have a tremendous impact on how your estate is eventually distributed. If you get married, you’ll want to ensure your spouse is cared for after you pass on. And, if you get divorced, you will most likely want to re-allocate assets to another beneficiary.

2. Birth, Adoption, or Blended Family

The arrival of children, no matter how they come into the family may be a motivation to review your estate plan. Even though state intestacy laws might ensure that each of your children can receive something from your estate, the government may not divide your assets the way you want if you don’t have a written estate plan in place.

3. Buying or Selling a Home

Buying or selling real estate can significantly affect your estate’s value and liquidity. These changes can impact what your beneficiaries ultimately receive.

After purchasing property, consider creating a living trust. This is especially important if you own property in more than one state. A living trust allows your property to transfer directly to your beneficiaries after your death. It can also help you avoid probate and keep your estate out of court.

4. New Financial Accounts

Changes in your finances should prompt a review of your estate plan. A financial gain, like an inheritance, can increase your estate’s value. A loss, such as a market downturn, can reduce it.

If your estate grows significantly, you may need tax strategies to limit potential estate taxes. If your estate declines, you may want to adjust who receives assets and in what amounts.

Update your estate planning documents to reflect these changes. This ensures your executor has accurate information. It also helps distribute assets correctly to your chosen beneficiaries.

5. Starting or Selling a Business

Business succession planning provides an outline of the way that your business is to be managed. You may need to establish or update your estate plan to avoid confusion when changes in business leadership occur.

6. Moving to a New State

When you move to another state, you should also plan to review your estate documents. Since laws vary from state to state, there are no guarantees your estate planning documents fulfill the requirements of your new home.

7. The Death Of Someone Named In Your Estate Documents

There is always a possibility you may outlive some people named in your estate documents.  Whether it is a beneficiary, executor, appointed guardian, or even a health care proxy, make sure to update your relevant estate planning documents to fill any gaps created by the unfortunate loss of a friend, partner, family member or other named beneficiary.

8. Medical Condition

This could be your own medical condition or that of your executor. A serious medical diagnosis or sudden accident should always prompt an urgent review of your estate plan. It may be time to change your designations regarding who you want to handle health care decisions or financial business if you become incapacitated. Make sure your estate planning documents reflect your wishes and that you have completed all the documents you need.

9. Change in Wishes

What you want for your estate plan when you created it might not be what you want in the future. If you’ve had a change of heart regarding how you want your estate handled, work with your attorney to make sure your wishes are clear.

Planning for the future and creating an estate plan is an act of kindness for your loved ones.

If you haven’t reviewed your estate plan documents in a few years, give us a call and let’s review it together. If you have not yet created an estate plan, there’s no time like the present. Let us help you through the estate planning process and give you the peace of mind knowing you are well prepared for the future and whatever it may bring. Give us a call at 404-370-0696.

   

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!