As we move through the middle of 2024, it’s a great opportunity to review your estate plan.
If you’re wondering if a review is really necessary, think about whether your personal or financial circumstances have had a big change lately. Certain life events can strongly impact your legacy and assets.
Below, we’ve outlined the most relevant events that, if experienced this year, indicate it’s time to update your estate plan.
Marriage
Getting married is a major life event that significantly impacts your estate plan. When you marry, you may want to add your spouse as a beneficiary to your will or trust, designate them as a healthcare proxy, or update your power of attorney. This ensures that your spouse has the legal authority to make decisions on your behalf if needed.
Divorce
Divorce necessitates immediate changes to your estate plan. You may need to remove your ex-spouse as a beneficiary, healthcare proxy, or power of attorney. Failing to update these documents can lead to unintended consequences and potential legal disputes.
Birth or Adoption of a Child
Welcoming a new child into your family is a joyous event that should be reflected in your estate plan. Ensure your child is named as a beneficiary, update guardianship designations, and consider setting up a trust to manage their inheritance responsibly.
Death of a Family Member
The death of a family member who is named in your estate plan as a beneficiary, executor, trustee, or guardian requires prompt updates. You’ll need to designate new individuals to fulfill these roles and ensure that your estate plan accurately reflects your current situation.
Sale or Purchase of Property
If you acquire new property, you may need to include it in your will or trust. Conversely, if you sell property that is mentioned in your estate plan, you’ll need to update the plan to reflect this change.
Moving to Another State
Relocating to a new state can affect the validity of your estate plan. Different states have varying laws regarding estate planning documents. It’s crucial to review your plan with an attorney familiar with the laws in your new state to ensure it remains valid and effective.
Tax Changes
Taxes play a critical role in estate planning, especially regarding inheritance taxes and estate taxes. Reviewing your plan in light of any new tax legislation can help you minimize tax liabilities and ensure your beneficiaries receive the maximum benefit.
Illness or Disability
A serious illness or disability can necessitate updates to your estate plan. You may need to adjust your healthcare directives, power of attorney, and guardianship designations to reflect your current health status and ensure that your wishes are honored.
Trust Counsel: Guiding You Through Life’s Major Changes
If you’ve experienced any of these life events in 2024, it’s crucial to review and update your estate plan. Ensuring your documents are current helps protect your loved ones and ensures your wishes are carried out.
At Trust Counsel, we are here to help you navigate these changes and keep your estate plan up to date.
Contact us today to schedule a consultation and ensure your estate plan reflects your current life circumstances.
