10 Life Events That Signal It’s Time to Review Your Estate Plan - Part I
Think of your estate plan as a trusty GPS navigating the twists and turns of your life. Just as you wouldn't rely on outdated maps for a road trip, your estate plan needs timely updates to ensure you're on the right track.
Join us as we embark on a journey through the first five (of ten!) checkpoints that signal it's time to recalibrate your estate plan and keep your route clear and worry-free.
01 | Your Assets and/or Liabilities Have Changed
Life is full of changes, and your financial situation is unlikely to stay the same over time. Changes in your assets, such as acquiring a new home, selling property, or incurring debt should prompt a review of your estate plan. You may need to update asset distribution, beneficiary designations, and financial provisions to reflect these changes accurately and ensure that the people you love receive what you intend when you die.
Most importantly, you need to update your asset inventory every time your assets change. The biggest risk to your family in the event of your incapacity or death is that they do not know what you have, where it is or how to find it. We solve this by creating an updating your asset inventory, regularly. (If you don’t have an asset inventory, give us a call. We’d love to help.)
02 | You Bought, Sold, or Started a Business
Owning a business adds another layer of complexity to your estate plan. If you’ve recently bought or sold a business, it's essential to update your plan to reflect what you want to happen to your business when you die, ensure a smooth transfer of ownership (if desired), and create a plan to protect your business assets for yourself and your loved one’s future.
The financial and personal value of your business can be a significant gift to your loved ones both today and for years to come - if you know how to incorporate it into your estate plan in the right way.
03 | You Gave Birth or Adopted a Child
Welcoming a new child into your family is an incredibly joyful moment. As a parent, it's essential to update your estate plan to include provisions for your child's well-being and financial future. This includes naming guardians for minor children, creating a Kids Protection Plan, and ensuring their financial security through trusts or other means.
It’s also important to document your wishes for your child’s education, religion, and values in your plan so that their legal guardians will know how you would want your child raised if something happened to you.
04 | Your Minor Child Becomes an Adult
As your children grow up and reach the age of majority, it’s important to make sure that they’ve authorized someone to make healthcare decisions and manage their money in the event they become incapacitated. Depending on their level of maturity, you may also want to consider if they are ready to handle assets on their own - and if so, what amount.
An even better idea is to provide lifelong protection of your child’s inheritance through the use of a Lifetime Asset Protection Trust. By using this estate planning tool, your child’s inheritance can be used to support your child’s future while safeguarding its use and protecting it from any potential future lawsuits or divorces your child may face later in life.
This ensures that your children are financially secure as they head into adulthood while also supporting your children with financial responsibility.
05 | A Loved One Dies
The loss of a family member is emotionally devastating, and it can significantly affect your estate plan. If a deceased loved one was a recipient of assets under your will, trust, or financial accounts, it's crucial to update these documents to make sure your assets will be distributed to the right people.
Additionally, if the deceased individual was designated as a successor trustee, executor of your estate, or a guardian of your minor children, you will need to appoint new individuals to fill these roles.
Planning for Life’s Changes
Your estate plan is the foundation that protects your family and your finances today and in the future. But estate planning is not a set-it-and-forget-it task; rather, your estate plan should change and evolve with the changes in your life so you can have the peace of mind in knowing that your plan will work exactly how you want it to when your loved ones need it most. That’s why we offer a complimentary review of our clients' plans every three years.
If you've recently experienced a significant life event or it's been a while since your last estate plan review, now is the time to review your plan. And if you haven’t yet created an estate plan, it’s better to plan early than to have no plan at all.
To get started, schedule a free 15-minute discovery call to learn more about our Life and Legacy Planning process where we’ll discuss your family dynamics and goals, address any changes in your life, and create a comprehensive estate plan that brings you peace of mind. Schedule your complimentary appointment today.
And, don’t forget to return next week for Part II. See you then!
This article is a service of Cedar Counsel. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.