As families shift and grow over time, major life milestones can bring new joys and relationships, along with new responsibilities.
An estate plan created a decade ago may no longer reflect the people and circumstances that matter most. Reviewing these documents after major life changes can help ensure they continue to reflect your wishes.
Keeping your estate plan current as life changes
There are many changes in life that may prompt you to review your estate plan. Marriage, divorce and remarriage can all affect how an estate is distributed. After getting married, someone may want to include their spouse as a beneficiary or give them the authority to make financial or medical decisions. However, an existing will may not automatically provide the intended protections. Reviewing beneficiary designations, trusts and other estate planning documents can help ensure a spouse is properly accounted for.
Divorce can also bring important changes to an estate plan. Under Delaware law, when an action for divorce is filed, certain powers of attorney will terminate for a former spouse, unless the personal power of attorney says otherwise. However, beneficiary designations for assets such as life insurance policies, retirement accounts and other accounts are governed by separate rules and should be reviewed individually. After a divorce, reviewing estate planning documents, powers of attorney and beneficiary designations can help prevent assets from going to someone the individual no longer intends to benefit.
The arrival of a new child or grandchild is another reason to revisit an estate plan. Parents may want to provide for a child’s financial future, establish a trust to manage inherited assets or name a guardian to care for minor children if something happens to them. Without appropriate planning, a court may need to appoint a guardian, and in some cases that person may not be the individual the parents would have chosen.
Keeping an estate plan current involves more than simply changing names in a will. It may require reviewing powers of attorney, health care directives, trusts and beneficiary designations to ensure the documents work together and continue to reflect your wishes.
As families change, estate planning documents should change with them. Speaking with a qualified legal professional can help you understand your options, address new family circumstances and make informed decisions about protecting your loved ones and their future.