The most important time to update your estate plan is when you have a new child. First-time parents are usually so stressed about bringing home the baby that they forget to plan for life’s “what ifs.” One of the best things you can provide for your new bundle of joy is a plan in case something happens to you or your partner. It is always a good option to discuss with loved ones who will be a good guardian if life doesn’t go according to Plan A.

You should also review your estate plan if you get married or divorced. Wisconsin is a community property state, so any assets that you bring into a marriage may be converted to jointly owned property which entitles your new spouse to half of the value of each asset. You can circumvent these laws by drafting a Marital Property Agreement before you get married. This documents allows you to pick and choose which assets, if any, you would like to keep as individual property and which assets you want to own jointly with your spouse. Similarly, if you get divorced, you will want to update your estate plan to exclude your former spouse.

Additionally, if you have a spouse that recently passed away, you will need to update your estate plan. You will need to update your Power of Attorney documents. In order to avoid the time, cost and hassle of probate, you will need to update your beneficiary designations on your non-probate assets.

Finally, if you have either a child with disabilities or an adult child who you fear may squander the inheritance you leave to him or her, it may be time to update your plan. There are options for providing funds above and beyond what government benefits will pay for a child with disabilities. One way is through a Special Needs Trust. For a child who is not the best with money, or who you fear may go through a divorce or a bankruptcy, you can set up a trust with an independent Trustee to oversee the assets. In either case, the assets can be preserved for your child when you are no longer here to look after them. 

Of course, there are a dozen more reasons to update your estate plan. These are just a few of the common life events that should make you take a step back and be sure your estate plan still fits your needs.

Laura L. Colt, Esq. is an estate planning and bankruptcy attorney with LaRowe Gerlach Taggart LLP in Reedsburg. To schedule an appointment with Laura, please call 608-524-8231 Monday through Friday between 8:00 a.m. and 5:00 p.m. and ask for her Assistant, Kari.

Disclaimer of Liability: This article is provided as a public service by Attorney Laura L. Colt. While the information in this column is about legal issues, it is not legal advice or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein.