If you have an estate plan, you’re already on your way to being prepared for anything that the future holds for you and your family. But it’s important to know that the estate planning process doesn’t end when you have an estate plan in place. Part of being prepared for the future is updating the plan when circumstances change, so you should expect to make adjustments as needed.
While you don’t necessarily need to modify your estate plan with every life change, certain events should lead to changes in your will, trust, power of attorney, and any other estate planning documents. Otherwise, your wishes won’t be carried out, and your family could be left feeling confused or even involved in legal battles. Consider some events that should prompt you to update your estate plan, and then contact the Law Office of Shannon DeWall, PLLC, for legal guidance from a caring Michigan lawyer.
The Birth or Death of a Loved One
If your immediate family has grown since you made your estate plan, you should update the documents to reflect this major life change. For example, if you’ve had a new child since making the estate plan, you should add them as a beneficiary in your will to ensure they receive the inheritance you wish to leave them. While updating your will, make sure you appoint a legal guardian in case they’re still a minor when you pass away.
Adding a child to your family is also a good time to update beneficiary designations for retirement accounts and life insurance policies. If you have a trust for your other children, you should update the documents to add the name of your new child to ensure all your heirs are provided for.
Similarly, if a close family member recently died, you’ll need to update your estate plan. If they were a beneficiary, removing them from your will or trust can ensure the inheritance is reallocated among your surviving beneficiaries. Make sure you also change any beneficiary designations that are affected by the death.
If your deceased loved one was assigned a role in your estate plan, you’ll need to remove them and appoint someone else. For instance, if you named them as your executor, power of attorney, child’s legal guardian, or trustee, you need to choose a different person to prevent delays and confusion over your estate when you pass away. A Michigan estate planning lawyer can help you modify your estate plan if you need guidance.
Significant Changes in Your Relationships
If you’ve gotten married or divorced since writing your estate plan, you need to modify it as soon as possible. After all, most people appoint their spouse as their primary beneficiary, and it may even be required or automatic on certain types of accounts. So, if you want to ensure your current spouse gets your assets, changing your estate planning documents after you get married or divorced is vital.
Another detail to consider is which loved one has authority over your financial and medical affairs according to your estate plan. For instance, if you’re getting divorced and had previously granted your spouse power of attorney, you should choose someone else to fulfill this role. The same is true if you appointed them as your estate executor.
You should periodically review the roles in your estate plan, even if you didn’t recently get married or divorced. This is because family relationships and close friendships can change over time, so someone you selected as a guardian or estate executor a decade ago may not be the best choice now if you’re no longer close or even in contact. A Michigan estate planning lawyer can go over your estate plan to direct any changes you wish to make regarding your will, trust, power of attorney, and more.
Changes in Your Financial Situation
When you make an estate plan, your income and assets will greatly affect the legal tools you use. This is why experienced estate planning lawyers typically ask about your assets and net worth before recommending trusts and other options to help preserve your wealth. So, it makes sense that you should update your estate plan after a significant change to your finances.
Some financial events that could affect your estate plan include buying or selling a house, receiving a generous inheritance, selling a business, or drastically increasing or decreasing your income. If you don’t update your will, trust, or other documents to reflect the current estate value, you could owe more taxes than intended, leaving less money for your loved ones. A skilled lawyer can review your new financial circumstances to determine if a different type of trust or other legal tool could save you money.
If you forget to add or remove assets from a will or trust, this could cause confusion and legal issues among loved ones when your assets aren’t distributed properly. Fortunately, an attorney can walk you through the steps of making the necessary modifications for your estate plan.
Why Should You Call a Michigan Estate Planning Attorney?
Whether you recently had a child, got divorced, sold a house, or experienced any other major life changes, you should take some time to review and update your estate plan. Other situations that may call for changes to your estate plan include moving to another state, being diagnosed with a serious health condition, or simply changing your mind on how you want your assets distributed.
Experienced estate planning attorneys can guide you on which changes to make in a way that will be legally valid and enforceable in Michigan. If you’re ready to learn more from a trusted legal team, call the Law Office of Shannon DeWall, PLLC, at 734-366-4463.