Life doesn’t stand still—and neither should your estate plan. Major events like marriage, divorce, having children, or significant financial shifts can impact your wishes and the legacy you want to leave behind. If your estate plan isn’t up to date, it may not reflect your current situation or safeguard your loved ones the way you intended.
Here are five major life changes that should prompt you to review and update your estate plan & why.
1. Marriage, Divorce, or the Birth of a Child
Big life moments call for big updates to your estate plan. If you’ve recently said “I do,” ended a marriage, or welcomed a child into your family, your estate planning documents may no longer reflect your true intentions.
If You Just Got Married
Marriage isn’t just about love—it’s also a legal and financial partnership. That means your spouse should be included in your estate plan, whether as a beneficiary, a trustee, or your designated power of attorney. If you don’t update your documents, your assets may not go where you want them to if something happens to you.
If You Got Divorced
Alabama law automatically revokes certain estate plan provisions for an ex-spouse, but it’s still recommended to remove them from your documents yourself to avoid any confusion or legal battles. No one wants their ex making financial or medical decisions for them.
If You Have a New Child
Having a child necessitates changes in your estate plan to ensure your child’s financial security and well-being. Taking proactive steps such as designating a legal guardian, creating a trust, and planning their inheritance can prevent future complications and provide your child with the necessary protection.
2. A Significant Change in Your Finances
Money changes, and so should your estate plan. Whether you’ve had a financial boom or bust, your current plan might not reflect your new reality.
If You’ve Gained Wealth
Maybe you hit the jackpot—sold a business, inherited money, or just made some really smart financial moves. First of all, congrats! But more money often means more estate taxes, more assets to distribute, and potentially more legal complexities. Updating your estate plan can help you safeguard your hard-earned assets and ensure they go where you want them to.
If You’ve Lost Wealth
On the flip side, if your financial situation has taken a hit, your original estate plan may no longer make sense. You may need to adjust how assets are distributed, restructure trusts, or rethink some of the financial decisions in your plan.
3. Moving to a New State
Not all states play by the same estate planning rules. If you’ve moved—whether into or out of Alabama—you need to update your estate plan accordingly.
Why Does This Matter?
Different states have different laws on probate, estate taxes, and power of attorney. What worked in your previous state may not be legally binding in your new one. The last thing you want is for your plan to be ineffective just because it doesn’t meet state requirements. An estate planning attorney can help you make any necessary adjustments.
4. Changes in Tax Laws or Estate Planning Regulations
Tax laws change, and sometimes, they can have a huge impact on estate planning strategies. If you haven’t updated your estate plan in a while, you might be missing out on opportunities to reduce estate taxes and safeguard your assets.
Stay Ahead of the Curve
The last thing you want is for your family to face unnecessary tax burdens because your estate plan is outdated. A quick check-in with your estate planning attorney can help ensure you’re taking advantage of current laws to maximize your financial legacy.
5. A Beneficiary, Trustee, or Executor Has Passed Away or No Longer Fits
Your estate plan is only as good as the people carrying it out. If a named beneficiary, trustee, or executor has passed away or is no longer the right choice, your plan needs an update.
Choosing the Right Beneficiaries
People come and go from our lives. If someone you originally listed as a beneficiary is no longer in your life (or no longer the right fit), it’s time to make changes. Keeping this list current helps ensure your assets go exactly where you intend.
Updating Trustees and Executors
The person you chose to manage your estate years ago might not be the best fit today. Maybe they’ve moved away, aged, or just aren’t in the right position to handle the responsibility. Reviewing these roles periodically ensures the right people are in charge when the time comes.
How Often Should You Review Your Estate Plan?
If your estate plan hasn’t been touched in three to five years, it’s time for a review. And if you’ve experienced any major life changes, you should revisit it immediately.
By keeping your estate plan updated, you’re giving yourself peace of mind and ensuring your loved ones don’t have to deal with unnecessary legal stress in the future.
Your Estate Plan Should Keep Up With Your Life
Life changes, and your estate plan should change with it. Whether it’s a new marriage, a growing family, financial shifts, or legal updates, failing to revise your estate plan can lead to unintended consequences, financial headaches, and unnecessary stress for your loved ones.
If it’s been a while since you last looked at your estate plan—or if you’ve recently experienced a major life event—now is the perfect time to update it. The Law Offices of Brenton C. McWilliams can help you navigate the process, ensuring your estate plan reflects your current wishes and safeguards the people you care about most.
Don’t put it off—contact us today to schedule a consultation and make sure your estate plan is built to stand the test of time.
