Planning for the Future

5 events that may warrant estate plan modification

On Behalf of | Oct 4, 2024 | Estate Planning

Taking the time and mustering the courage to create an estate plan is no small feat. Once you have your plan created, you might breathe a sigh of relief knowing that you have the documentation in place to protect yourself, your estate, and your loved ones in the event of your incapacitation or death. Yet, the estate planning process is intended to be ongoing, meaning you should revisit your estate plan periodically to ensure it still meets your needs.

However, major life events also warrant looking at your estate plan. If you fail to do so, you could forget to modify your plan, thus leading to asset distribution that’s contrary to your wishes. So, let’s dive in and look at some events that should spur you to consider an estate plan modification.

Events that warrant estate plan modification

Although estate plan modification certainly isn’t required, if you want yours to continue to meet your needs, you may want to consider modification when major life events occur. This includes each of the following:

  1. Marriages and divorces: These events bring new people into your family or cause them to leave. Yet, if you don’t modify your estate plan to add or remove these individuals as you see fit, then your assets could pass into the hands of someone who no longer has an attachment to your family, or you could inadvertently cut out someone who is now close to you or someone you love. So, look at your estate plan if a marriage or divorce occurs involving you or a named beneficiary.
  2. Births and deaths: Births and deaths can impact your asset distribution scheme. If you don’t add a child to your estate plan, they may not inherit what you intended for them. Suppose you don’t remove deceased individuals from your plan. In that case, you can create confusion about where assets should be distributed, and they may pass down the deceased individual’s family line, which may not align with your wishes.
  3. Changed relationships: If you have a falling out with someone named as a beneficiary in your estate plan, you might want to modify your estate plan to reflect that change. You can leave fewer assets to that individual, change the requirements for them to receive their inheritance, or even remove them from your estate plan altogether. But all of these options will require action on your part.
  4. Acquisition of new assets: Although you may have a catch-all provision in something like a pour-over will, it’s always a good idea to revisit your estate plan when you acquire a new asset, especially if it’s valuable. That way, you can ensure it’s handled appropriately when the time comes.
  5. Changed interests: You don’t have to leave all of your estate to your loved ones. If there’s a particular cause that you’re interested in supporting, then you can create something like a charitable remainder trust to provide for that cause. So, if you develop new interests, you may want to revisit your estate plan to account for the charitable causes you wish to contribute.

Don’t let your estate plan get away from you

We understand that it can be hard to keep estate planning at the front of your mind as time passes. But you must revisit your plan and reconsider its terms when major life events occur. Otherwise, you may lose the control over your estate that you’ve worked so hard to acquire. So, if you have questions about navigating your estate planning questions, now is the time to seek any guidance you may need.  We are here to help you with that process.