An estate plan is not a one-time task that you complete and then forget about. Instead, it should be a living set of documents that evolves as your life changes. Major life events can significantly affect your wishes, your family structure, your financial situation, and even the laws that apply to your estate. Failing to update your estate plan after these changes can lead to unintended consequences, family disputes, or assets being distributed in ways you never intended.
Understanding how different life events can impact your estate plan can help you recognize when it’s time for a review and update.
Marriage or Remarriage
Getting married is one of the most significant life changes that can affect your estate plan. Many people create their estate plan while single, naming parents, siblings, or other relatives as beneficiaries. Once you marry, you may want your spouse to inherit some or all of your assets, make medical decisions on your behalf, or serve as executor or trustee.
Remarriage can be even more complex, especially if either spouse has children from a previous relationship. In blended families, it’s critical to balance providing for your spouse while also ensuring your children ultimately receive their intended inheritance. Without updates, state laws may override parts of your plan or distribute assets in a way that doesn’t reflect your wishes.
Divorce or Separation
Divorce is another major event that should prompt an immediate estate plan review. While some states automatically revoke certain provisions benefiting an ex-spouse, others do not. Even where revocation laws exist, relying on them can be risky.
After a divorce, you may want to:
- Remove your former spouse as a beneficiary
- Change your executor, trustee, or agent under a power of attorney
- Update guardianship designations for minor children
- Revise how assets are divided among heirs
Failing to make these changes can result in your former spouse retaining decision-making authority or receiving assets you intended for someone else.
Birth or Adoption of a Child
Welcoming a new child through birth or adoption is often a joyful reason to update your estate plan. One of the most important considerations is naming a guardian in case something happens to you. Without a valid guardianship designation, a court may decide who raises your child.
You may also want to:
- Add the child as a beneficiary
- Create or update trusts to manage assets until the child reaches a certain age
- Adjust life insurance coverage to account for new financial responsibilities
- Estate planning ensures your child is financially protected and cared for according to your wishes.
Death of a Loved One
The death of a spouse, beneficiary, trustee, or executor can significantly affect your estate plan. If someone named in your documents is no longer alive, parts of your plan may no longer function as intended.
For example, if your primary beneficiary passes away and you haven’t named a backup, assets could pass through probate or be distributed under state law. Reviewing your estate plan after a loss allows you to replace key roles and re-evaluate how assets should be distributed moving forward.
Significant Changes in Finances
A major change in your financial situation—such as starting a business, receiving an inheritance, selling property, or approaching retirement—can also impact your estate plan. As your wealth grows or changes, you may need more advanced planning tools, such as trusts, to manage taxes, protect assets, or provide for long-term care needs.
Similarly, financial setbacks or debt may require adjustments to ensure your beneficiaries are not burdened or that certain assets are protected.
Health Changes or Aging
A serious illness, disability, or the natural process of aging often highlights the importance of incapacity planning. Documents like powers of attorney, healthcare directives, and living wills become especially critical if you are unable to make decisions for yourself.
Health changes may also prompt conversations about long-term care, asset protection, and how medical expenses could affect your estate. Updating your plan ensures your wishes are respected and your loved ones have clear guidance during difficult times.
Changes in Laws
Estate planning laws can change over time, affecting taxes, probate rules, and beneficiary rights. Even if your personal circumstances remain the same, legal changes may require updates to keep your estate plan effective and compliant.
Regular reviews with a professional can help ensure your documents reflect current laws and continue to serve your goals.
Why Regular Estate Plan Reviews Matter
As a general rule, you should review your estate plan every few years and anytime you experience a major life event. Even small updates can prevent confusion, reduce conflict, and provide peace of mind knowing your wishes are clearly documented.
Plan Your Next Step With The Law Offices of Cheryl David
Life events are inevitable. Out-of-date estate planning is not. Marriage, divorce, new children and grandchildren, moves, business changes, and health shifts all affect who you are planning for and how your plan will work in the real world. By taking a little time to review your documents after these milestones, you give your family clearer guidance and reduce the chance of confusion or conflict later.
For Greensboro residents, working with a local firm that focuses on estate planning, probate, trust administration, Medicaid planning, guardianships, and powers of attorney means you have one place to turn as your life evolves. At the Law Offices of Cheryl David, we see ourselves as long-term planning partners. Whether you have an old will from another state, a trust that has never been updated, or no documents at all, we can help you align your estate plan with your current life and your future goals.
To schedule a time to review your plan or discuss creating one, contact us today.