Why Does My Estate Plan Need To Be Reviewed?
Despite popular opinion, an estate plan is not simply a one-off document. Instead of thinking of them that way, consider it more like a car, where it must regularly be maintained and repaired to keep it in good condition. As you move through stages of life — from being a teen to adult, to getting married, retired, and having grandchildren, it’s important to have your estate plan reflect the changing circumstances of your life and your family. Every time you go through one of these stages, it’s a good time to get your estate plan reviewed.
Helping you plan at each stage of life, and capable of creating all the necessary documents to optimally protect you, your family, and your finances, Zaremba Center for Estate Planning & Elder Law is Williamsburg go-to elder attorney. Our team, led by Walt Zaremba, is ready and more than happy to work with you, even if you’ve never drafted any documents regarding what you legally want to happen in all sorts of different scenarios, to your estate. We’re not just talking about wills here, but also revocable living trusts, living wills, specifications for power of attorney, and more. No matter what your needs are or what stage in your life you are in, Zaremba Center is here for you. If you would like a free, no-obligation consultation with us, contact us today!
Call Us: 757-259-0707
Why You Need an Estate Plan that Grows with You
All major life changes don’t necessarily require a change in your estate plan. Here are some of the most common situations where it becomes important to get it taken care of.
#1: Marriages & Divorce
Both marriages and divorces entail a legal dimension that regards assets and overall estate planning. For someone who is recently married, ensuring that their new estate plan includes their spouse often has people calling our offices. On the other side, to prevent money from going to an ex-spouse after divorce, a change of the estate plan will also be needed. There is no legal requirement for divorcees to do this though, but even if you want to keep each other in one another’s estate plans, it’s still a good idea to update it so that it reflects that, despite the fact that you are no longer legally married, you still wish to maintain the same estate plan.
#2: Children
Children change the family dynamic in many ways. Make sure your estate plan is set up to properly reflect the new situation. For example, if your new spouse has children from a previous relationship, you may wish to include your new stepchildren into your estate plan. On the other side, if you want to disinherit a child or spouse, you absolutely need to make that clear in your estate plan. Anytime your family tree changes, you should change your estate plan to reflect that change, to ensure it’s completely accurate. You and your partner may want to figure out things such as:
- What assets you want to pass to your children
- At what age will they inherit your assets
- Who will be their legal guardian if you pass way
#3: Retirement
When accounts such as 401Ks and Roth IRAs are set up, it’s often decades before retirement. Once that money you saved up starts becoming available to you, it’s common for the beneficiaries of it to be out-of-date. Retirees should examine all their retirement assets and update their beneficiaries to be more reflective of their current financial and family circumstances.
#4: Other Life Events
There are countless good reasons to review your estate plan. Some changes in life are planned, while others are totally outside of our control. For example, a new federal tax law in 2017 has made some provisions in earlier estate plans potentially out-of-date. Other events that often lead to the need to review your estate plan include:
- A new child or grandchild is born or adopted
- When a child or grandchild reaches legal adulthood
- When a child or grandchild requires extra education funding
- Death of the appointed guardian in your will for minor children
- The number of dependants you care for has increased, such as a family member has moved in with an illness
- Changed financial goals for you and your spouse
- Your spouse gets sick or becomes disabled
- Your insurance plan changes
- You buy a home or another large asset
- You borrow a large sum of money
- Big increases or decreases in the value of investments
- State and federal tax laws change and you want to plan with those in mind to achieve your previous goals
- You get a new job
Review your estate plan regularly, especially during periods of major life events, to ensure that your legacy and finance are planned correctly and according to your own wishes. You don’t want to be caught out in a situation where, due to a set-it and forget it attitude, your beneficiaries don’t receive their benefits smoothly.
Next Step
As soon as any of these changes in your life occur, it makes little sense to wait to change your estate plan. If you don’t already have an estate plan put in place, it’s a good idea to work with an estate planning attorney such as Walt Zaremba to help you set up a plan that works for you and takes care of your beneficiaries as you wish. If you are in or around Williamsburg, contact Zaremba Center today to get started with your free consultation!
Estate planning can involve a number of different things — not just a will. Other common components of an estate plan are:
- Living wills
- Advanced directives (health care documents)
- Revocable living trusts
- Durable power of attorney
- Beneficiary designations
- Digital asset provisions
- Letter of Intent