One of the biggest mistakes people make in estate planning is failing to review and update their documents periodically. Even if you have a solid estate plan in place, it can end up proving irrelevant if it doesn’t accurately reflect your wishes at the time of death. Your plan should change over the years along with your evolving life circumstances. Here are some of the most common milestones that constitute a modification. 

When to Update Your Estate Planning Documents

1. Marriage 

Getting married will have a big impact on what happens to your estate after you pass away. You may want to add your new spouse to your will or trust, grant them power of attorney to make medical and financial decisions on your behalf in the event of incapacitation, and name them as a beneficiary on your life insurance policy and retirement accounts. 

2. Divorce or Estrangement 

Going through a divorce or becoming estranged from a loved one will also warrant an adjustment to your estate planning documents. This will ensure your assets aren’t left in the hands of people who are no longer part of your life. You will want to remove your ex-spouse and those you are estranged from as a beneficiary and revoke any power you gave them over your estate.  

3. Birth of a Child 

Welcoming an addition to the family is a significant reason to make sure your financial affairs are in order. Both parents and grandparents will likely want to leave the children an inheritance. Furthermore, it’s important to name a guardian in your will so you have control over who takes care of your children should you pass away before they become adults. 

4. Increase in Assets 

If your estate’s value has dramatically increased since your plan was first created, it will need to be accounted for. You’ll want to ensure you’ve made arrangements for the distribution of new assets and strategically planned to minimize estate taxes. This is applicable if you buy a house, start a business, add investments, or collect a large inheritance. 

5. Death of a Loved One 

Should someone you’ve included in your estate plan pass away before you, it’s essential to make the necessary changes to fill the role they had. They may have been named a guardian for your children, executor of your estate, or a designated beneficiary. Leaving these positions vacant can have unintended consequences, including your assets being transferred to someone you didn’t intend to. 

It’s best practice to consult your estate planning attorney any time you go through a major life event. Whether you need guidance putting an estate plan together or reviewing your current documents, contact the legal team at Greene Law PC. They will walk you through all your options and assist you in creating a comprehensive plan that meets your goals. For more than 25 years, they have helped residents across Hartford County, CT, properly prepare for the future and protect their loved one’s interests. Call (860) 676-1336 to arrange a consultation or visit them online to learn more about their estate planning services.