You Need to Rewrite Your Will After Any of These 10 Life Events

There are plenty of things that can happen during your life that will cause you to make updates to your estate plan. Amending your will, trust, or other estate documents is a normal thing to do to financially prepare yourself and your family for the distribution of your assets.

Remember that an estate plan consists of a few foundational documents: a will (or trust), healthcare directives, and financial power of attorney. 

Updating your documentation will give you peace of mind, provide clarity to your beneficiaries, and avoid legal proceedings.

Here are 10 life events that will necessitate a rewrite of your estate plan.

Changing your marital status is one of the most common life events on this list, and for good reason. Whether getting married or divorced, your assets and directives will change in some fashion.

If you’ve recently gotten married, updating your will, trust, and powers of attorney to include your spouse is essential. 

Conversely, if you’ve gone through a divorce, you’ll likely need to remove your ex-spouse from beneficiary designations and decision-making roles.

Adding a new family member is a good reason to update your inheritance plan. Many states have statutes governing omitted family members.

These children, grandchildren, or spouses are entitled to a share of the estate unless it is evident that the omission was intentional or certain other conditions apply. 

So, having a clear and updated estate plan is essential to prevent the state from getting involved in lengthy probate proceedings.

You must amend your documents if someone named in your trust or will passes away. This is particularly relevant if someone you called to be the executor of your will or the trustee of your trust predeceases you.

In those situations, you must readjust who controls your estate. It is also time to lay out more provisions in case something else happens.

A massive increase in your net worth, such as a huge economic windfall or a large inheritance, would be a cause for changing your estate plan.

With the potential for more assets and a larger monetary value of your estate, you will want to ensure everything is distributed accordingly.

Moving your primary residence to a different state means different estate laws. So, updating your estate documents once you’ve completed the move is a smart thing to do.

Your will or trust will be carried out in the state you reside in at the time of your passing. If you haven’t updated your documents to comply with local laws, that can cause additional confusion and potential legal challenges.

A change in your health, particularly one that impacts your cognitive abilities, will require an updated estate plan — specifically, a change to your healthcare directives and power of attorney designations.

In case you are incapacitated or are mentally unfit to be in control of your estate, you want clarity over who will be in charge of your care.

As you ease into retirement and start living on a fixed income, your assets could change to free up more money for retirement.

As you begin drawing down your retirement accounts, having a clear estate plan for the remaining funds after your passing is a smart move. You might need to change your will or trust as you adjust to retired life.

You can change who your beneficiaries are and who will be entrusted with responsibilities in your estate plan at any time. For example, many decide to liquidate their assets and donate the proceeds to charity. 

If your relationships with beneficiaries change over time, you can add or remove them from your estate plan.

Laws governing estate taxes, beneficiaries, and probate are constantly changing, which might necessitate a change in your plan. 

Remember that you want to make it as easy and drama-free as possible for your beneficiaries to divide and distribute your assets after your death.

The last thing you want to do is get the government involved in a complicated legal matter. It’s wise to review your estate plan every few years to ensure it complies with current laws.

Any property you own is part of your estate, so any changes must be reflected in your documentation. Selling a property that was in your will or trust means it will no longer go to the beneficiaries.

If you bought a new property, it must be placed in your estate documentation and have a plan for how it will be divided.

To prevent potential legal issues or unexpected outcomes, ensure your estate plan accurately reflects your will and intention and that you’ve drawn up new documents with an attorney.

Keep in mind that as you build wealth, your desires might change. Being prepared and meeting with an estate planning attorney is a surefire way to make sure your wishes come to fruition.