What Steps Should New York Residents Take to Update Their Estate Plan After Major Life Events?

What Are Some of the Major Life Events that Can Affect an Existing Estate Plan?

Estate plans are, by their nature, unique to the estate’s owner. No two estates are the same. One result is that major life events can affect multiple estates in different ways. The following are just some of the life events that can impact estate planning. If something has occurred in your life that you’re worried might affect your estate plan, and it’s not on this list, contact an experienced estate planning attorney to review the situation. There are too many potential changes to put on one list. Given the unpredictable nature of most people’s lives, it is not uncommon to have to update estate plans every few years. 

• Marriage or divorce. These may seem obvious, but they can be more far-reaching than some realize. Of course, if you are getting married or divorced, you should update their plan as soon as possible to reflect your new marital status. It is not only your marriage or divorce that may affect an estate; if your children, grandchildren, siblings, or other inheritors marry or divorce, that may change things, too. 
• Having children or grandchildren. As with marriage or divorce, this can extend through generations and change plans.
• Deaths. Sadly, there are times when a beneficiary of your Will or trust passes away before you. Updating the estate should be done as soon as feasible. 
• Starting or joining a business. This can have a significant impact on your estate plan. 
• Increased financial assets. If you take a much higher-paying job or receive an inheritance or legal settlement, you should update your plan to account for the larger assets.
• Change in life status. This is a catch-all category that contains many situations. Anything that changes a relationship with a beneficiary, such as a falling out with someone or a family member becoming disabled and needing future financial security, can lead to changing the estate.
• Moving across state lines. If your estate was drawn up in one state but you move to another, it’s advisable to have an estate planning lawyer in the new state review the estate to ensure it is consistent with the laws of that state. Each state varies as to requirements and restrictions. 

What Steps Should I Take to Update My Estate After a Major Life Change?

Updating an estate plan is similar to creating one in the first place. In fact, depending on the complexity or number of the changes, many people end up creating a new plan or new components for the overall plan. That can make things cleaner legally without having to resort to reminding executors or trustees that previous plans have been amended.

• Gather plan details. Whether you have them in print or digitally, gather the existing plan to take to your attorney. 
• Compile new records. Whatever the changes are–births, deaths, financial status–bring any relevant paperwork to the meeting. That can include bank statements,  life insurance policies, trust documents, wills, deeds to property, corporate records, etc. 
• Prepare to discuss the changes. You may know exactly what changes you want, or you may want to discuss the legalities of potential changes to receive advice on aspects you might not have considered. Either way, your attorney can work with you to determine what changes make sense and how to implement them.
• Complete the necessary paperwork. Many changes involve multiple documents that all need to be updated. Some will need to be signed and possibly notarized. Your attorney can advise you as to what’s required to make the changes legally binding.
• Communicate. Just as you did when you set up the original estate plan, you should consider informing relevant parties that the estate plans have been updated. If there are trustees involved, you may want to appraise them of the revisions so they understand what’s changed and how it might affect their role. If you prefer, you can inform your nominated executor. Provide changes of healthcare directives to your doctor. As difficult as it is, especially if you’re disinheriting someone, that should also be explained to relevant parties. The more informed the people around you are, the less likely someone can try and contest any of the plans. 

If I Haven’t Had Any Major Life Changes, Is it OK to Leave My Estate Plans As They Are?

Even if nothing has changed–you’re still married, still want your children to receive an inheritance, it’s highly advisable to review your estate plan with your attorney every five (5) to ten (10) years, but more frequently when there have been changes in your life. You may not remember all the details and realize there are small changes you want to make. It’s also possible laws have changed in your state, and the plan should be updated to be legally enforceable.

What Should I Do if I Have an Estate Plan that Needs Updating Because of a Major Life Event?

Call Davidov Law Group as soon as possible at 516-253-1366 to schedule your complimentary assessment. Keeping your estate plan up to date is vital for ensuring your plans are carried out when necessary. Our team of experienced, knowledgeable estate planning attorneys can walk through your existing estate plan to help identify the areas that need to be modified to address the major life change you’ve experienced. What’s more, we have certified financial planners on staff as well for additional expertise and insight. That can help you feel more secure and confident in having your estate current and in order.