As you pass through the different stages of life, you may encounter circumstances that change the trajectory of your family’s lives. Some changes may be pleasant and some might be tragic, but all must be managed effectively.
One aspect that’s frequently affected by life-changing circumstances is your estate plan. Let’s review some situations necessitating changes to an estate plan.
Someone got divorced
It is important for any estate planner to review the terms of their will and any revocable trusts that include their former spouse after a divorce. If another family member divorced and their material circumstances drastically changed, that could be another reason to review the estate plan that’s in place.
Review your children’s guardians
The guardians whom you chose to care for your infant may be quite different from the ones you would choose to raise your teens should you pass away. Make sure that your estate plan reflects your current intentions and that the proposed guardians agree to accept their role(s).
Check beneficiary designations
If a spouse died or you divorced them, you will also need to update any beneficiary designations in their name. These could include:
- Life insurance policies
- Investment accounts
- Annuities
- IRAs
- Bank accounts
- Pensions
Keep in mind that the above will not get automatically transferred in your will, and the beneficiaries must be changed if you no longer want them to receive a legacy after you have passed on.
Periodically review all estate plans
In general, it’s always prudent to periodically go over your estate planner with a professional. Their guidance and strategies could prove helpful and allow you to avoid estate planning errors.