The Importance Of Updating Your Estate Plan After Major Life Changes
Life is full of change. Whether it’s a marriage, divorce, the birth of a child, or retirement, these milestones can have a profound impact on your financial and legal circumstances. It’s crucial to ensure that your estate plan reflects your current life situation and future wishes. This post will highlight why updating your estate plan after major life changes is essential and provide guidance on when and how to make these updates.
Why Updating Your Estate Plan Is Crucial
An estate plan is more than just a will; it’s a comprehensive plan that includes various legal documents designed to protect your assets and ensure that your wishes are carried out upon your passing or in the event of incapacitation. Major life events can alter your priorities, financial standing, and legal obligations, making it necessary to revisit and adjust your estate plan accordingly.
Key Life Events That Should Trigger an Update
- Marriage
Getting married is one of the most significant events that should prompt an update to your estate plan. In Wisconsin, marriage can automatically alter property rights and inheritance, particularly if you and your spouse own property together or have joint accounts. Updating your estate plan after marriage ensures that your spouse is provided for according to your wishes and that any specific instructions regarding joint or individual assets are clearly outlined.
- Divorce
Divorce is another critical reason to update your estate plan. Wisconsin law may automatically revoke certain provisions in your will that pertain to your ex-spouse, but this might not cover all aspects of your estate. For example, if your ex-spouse is still listed as a beneficiary on life insurance policies, retirement accounts, or payable-on-death accounts, you need to update these designations to avoid unintended distributions.
- Birth or Adoption of a Child
The birth or adoption of a child is a joyous occasion that should be reflected in your estate plan. You’ll want to ensure that your child is named as a beneficiary and that you have appointed a guardian for them in the event of your passing. Additionally, setting up a trust for your child can help manage their inheritance until they reach adulthood.
- Retirement
Retirement often brings changes in financial circumstances, including shifts in income and expenses. As you transition into this new phase of life, it’s essential to review your estate plan to ensure it aligns with your current financial situation and retirement goals. This may include updating your will, adjusting your beneficiaries, and reviewing any trusts or retirement accounts.
- Significant Changes in Assets or Wealth
If you’ve recently acquired significant assets, such as real estate, investments, or a business, updating your estate plan is vital to account for these changes. Properly structuring your estate plan can help minimize estate taxes, protect your assets from creditors, and ensure that your wealth is distributed according to your wishes.
How to Update Your Estate Plan
- Review Existing Documents
Start by reviewing your existing estate plan, including your will, trusts, powers of attorney, and any other legal documents. Identify the areas that need to be updated based on your current life situation.
- Consult with an Estate Planning Attorney
Updating an estate plan can be complex, especially if your situation involves significant assets or complicated family dynamics. Consulting with an experienced estate planning attorney ensures that your updates are legally sound and that all necessary documents are properly executed.
- Communicate with Family Members
After updating your estate plan, it’s important to communicate your changes with your family members and any appointed executors or trustees. This helps avoid confusion or disputes in the future and ensures that everyone is aware of your wishes.
Conclusion
Major life changes are inevitable, and they often come with new financial and legal considerations. Regularly updating your estate plan ensures that your assets are protected, and your wishes are honored, regardless of the changes life brings. At Bosshard Parke, we understand the importance of keeping your estate plan current. Our experienced attorneys are here to help you navigate these changes and ensure that your estate plan reflects your evolving needs.
If you’ve experienced a significant life event and need to update your estate plan, contact Bosshard Parke today for expert legal assistance. Our experienced attorneys in La Crosse and Sparta, Wisconsin, are here to provide you with the guidance and support you need to ensure your estate plan is up-to-date and aligned with your wishes.
Disclaimer: This article is for informational purposes only and should not be considered legal advice. For specific guidance related to your estate plan, please consult with a qualified attorney at Bosshard Parke.
