Estate planning is a crucial step in ensuring that your hard-earned assets and legacy are protected after your passing. The legal documents that are involved in this process are essential if you want your property passed to certain heirs after you are gone. However, the creation of an estate plan is not a one-and-done task. It requires regular reviews and potential updates when certain life changes occur. When these situations arise, an estate planning lawyer can help.
Major life events, such as changes in your marital status, financial situation, or health, can all call for updates to be made to your estate plan. The legal world that surrounds these documents can be complicated, and it can feel overwhelming if you attempt to make these updates on your own.
You do not want to miss a crucial step and risk an event in which your will does not stand up after your passing. At Stange Law Firm, we are here to help you review and update your estate plan, should any major life change occur.
What Is an Estate Plan?
In general terms, an estate plan is a collection of legal documents that dictates what happens to your assets and property following your death. This strategy is designed to ensure that your assets and property are distributed to the parties of your choosing. It can also protect your assets after your passing.
Additionally, an estate plan should include a comprehensive plan for situations where you are incapacitated and unable to make decisions for yourself. Essentially, your estate plan should provide your loved ones with a guide to help them with their decision-making after you pass.
Major Life Changes That May Trigger an Update
There are several life events that may trigger the need to review and update your will. These can include the following:
- Marriage: Starting a life with a new person is an exciting and exhilarating time. Between all the wedding and honeymoon planning, however, it can be wise to also take a look at your estate plan. Making necessary changes at this time can allow your new spouse to be your emergency contact, should something happen. They can become a beneficiary for any insurance benefits, and you should also make sure that they are taken care of, should you pass first.
- Divorce: Breaking up a marriage can be complicated and tense. Following the dissolution of your relationship, you need to update your estate plan to reflect your change in marital status. You may want to take your ex completely out of your estate plan or make changes to what they will receive at the time of your death.
- Changes in Your Financial Circumstances: If you experience significant changes in your financial circumstances, this will typically call for a review and update of your estate plan. These changes might include the acquisition of substantial new assets, like a new home or business, or a raise at work. Likewise, if your financial situation takes a negative hit, you might want to adjust your plan to reflect your new circumstances.
- Birth or Adoption of a Child: The birth or adoption of a child is a major life change that calls for the updating of your estate plan. You will want to name a guardian for the child or children in your will in case anything should happen to you while they are still minors. You may also want to set up a trust to provide for your child’s future.
- Sickness: If you find yourself diagnosed with a severe or fatal illness, you will want to begin reviewing and updating your will before your condition grows worse. You will want to ensure that there is a plan in place, should you become unresponsive and unable to make your own medical decisions.
- Death: If you happen to survive some of the individuals named in your will, you will need to make updates to reflect this loss. Likewise, if a beneficiary of your estate dies, you will need to relocate their inheritance to another heir.
How to Update Your Will
Updating your will can seem like an overwhelming task. Luckily, you don’t have to attempt it yourself. First, you will want to review the content of your will and identify the areas that need updating.
You will also want to consult an attorney to ensure that you are going through the correct channels to update your will and estate plan. Then, you will want to determine the changes that need to be made, draft a revised version of your will, and have it signed and executed.
FAQs
Q: What Are Some Key Components of a Will?
A: Some of the key components of a will include:
- A last will and testament, or an outline of what will happen to your assets after your passing
- Any necessary trusts
- Documents dictating powers of attorney
- Directives that pertain to your healthcare and medical decisions, should you be unable to make these decisions yourself
- The designation of certain duties to specific individuals
Q: How Much Does an Estate Planning Attorney Charge?
A: Unfortunately, it is difficult to offer an exact estimate of how much an estate planning attorney can charge. There can be many factors that impact the final cost of an attorney. These can include the structure of the attorney’s typical fees, the complexity of the estate in question, and any potential costs if probate is deemed necessary.
Q: How Often Should I Review My Estate Plan?
A: Generally, it is suggested that an estate plan be reviewed every few years. This is because, in these few years, major things can change in one’s life, which may call for the plan to be updated. The regular review of your estate plan ensures that your wishes stay up-to-date and reflect your current needs.
Q: What Are the Potential Consequences of Not Updating My Estate Plan?
A: Failing to keep your estate plan up to date and reflective of your current life situation can come with certain consequences. You do not want to be left incapacitated without a power of attorney or medical directives put in place. You also do not want to pass with things unaccounted for and risk having conflicts arise between your beneficiaries. Ensuring that your estate plan stays current can help mitigate these risks.
Contact a Trusted Estate Planning Attorney Today
When major life-changing events happen, it is better to review and update your will than do nothing and hope your will stands solid when you are gone. These situations can be complicated and often have to be addressed when your mind is focused somewhere else. This is where an estate planning attorney from Stange Law Firm can help. Contact our offices to schedule a consultation today. Estate planning can be complex, but you don’t have to manage this task alone.
