Updating Your Estate Plan After Major Life Changes

By Kim Boyer

Life changes happen. It is inevitable. Once your estate plan in place, make sure you review it regularly and after major life changes. As an elder law firm, we tell our clients to review estate plans after these major life changes:

1. Changes in Health Status

Upon a sudden health change or a diagnosis of dementia or Alzheimer’s disease is received, it is important to review your estate planning. When someone first receives a diagnosis, he or she may still have the capacity to execute documents, so it is essential to get planning in place or review and make any updates to existing planning. We encourage people to make sure they have valid powers of attorney for health care and powers of attorney for assets in place. You may also want to update wishes and values regarding your end-of-life care.

If a loved one receives a diagnosis of dementia and that person is named in your documents as a decision-maker, you may want to update the decision-maker or add a contingent decision-maker.

2. Death of Spouse or Beneficiary

If one of your beneficiaries dies, good estate planning would have contingents in place. But often once a primary beneficiary dies, people may want to reassess their overall estate plan. You should also update beneficiary designations. We handle probates where the named beneficiary died first and there was no contingent beneficiary, so be sure to look at any beneficiary designations and get them updated.

3. Marriage or Divorce

If you get married, you may want to add your spouse as a beneficiary or a fiduciary. You may want to prepare a new trust together. After a divorce, you will likely want to remove your prior spouse from all of your estate planning documents and update your beneficiary designations on IRAs or life insurance. If you still want your ex-spouse on any documents or as beneficiary, you will need to prepare new estate planning documents after the divorce and possibly update your beneficiary designations on IRAs or life insurance.

4. Birth or Adoption of a Child or Grandchild

When you have or adopt a child, you’ll want to ensure that your children are provided for in your estate planning and consider establishing trusts for their benefit. Additionally, nominating guardians for minor children is important to ensure their well-being in the event of your passing.

If you have a new grandchild, you might want to update your estate plans to include the new grandchild.

5. Major Financial Changes

If your financial situation changes, you should review your estate planning documents and assess what the change means for your overall plan. For example, an inheritance might mean you reallocate your distribution, or consider charitable planning. Facing a long-term care stay might mean looking at asset protection planning or end-of-life planning.

6. Relocation

When you move to a new state, it is important to review and potentially update your estate planning documents with an attorney in that state to ensure your documents comply with local laws.

Once you have your estate planning in order and updated, be sure to get all your important information organized. My book will help you do that: “My Last Gift: An Essential End-of-Life Planner: Important Information for You and Your Loved Ones.” I am excited to announce that this book made the #1 New Release in Aging Parents. Here is my Amazon link to the book: https://amzn.to/3NKPpr5

Kim Boyer is a Certified Elder Law Attorney who has practiced in the areas of estate planning, probate, and guardianship for over 25 years. She is owner of Boyer Law Group, and has been selected as a Best Lawyer in America, as a Super Lawyer, and as a Best Law Firm in the area of elder law. She can be reached at (702) 255-2000 or at www.elderlawnv.com.