10 Life Events That Signal It’s Time to Review Your Estate Plan - Part II
Reviewing your estate plan is like setting waypoints on a road trip – ensuring you're on the right track as you navigate life's twists and turns.
Last week, we covered five scenarios that signal it’s time to review your estate plan. In this second leg of our journey, we’re discussing five more instances that call for a recalibration of your plan, so that you’re well-prepared for whatever life may bring your way.
06 | You Become Seriously Ill or Injured
A sudden illness or injury can leave you unable to manage your affairs. Accordingly, it's essential to review your estate plan to ensure it includes powers of attorney for healthcare and finances. These documents let you name someone you trust to pay your bills and manage your assets, as well as make medical decisions for you if you can’t speak for yourself.
It’s also important to include healthcare directives that describe what kind of healthcare you want if you become incapacitated. This can include dietary restrictions or preferences, religious beliefs, or limits to certain treatments or life-sustaining measures.
07 | You Moved to a New Home
Each state has its own laws and regulations regarding estate planning, so if you move to another state after completing your estate plan, it’s crucial to have your plan reviewed by a local attorney. If your existing plan doesn’t meet your new home state’s requirements, this can cause delays when your plan needs to be used and may even require a court to review its validity.
Reviewing your plan with a local attorney and making any changes to comply with our laws will make sure that your estate plan can be relied upon at any moment without delay or confusion.
08 | You Got Married
When you tie the knot, your estate plan needs to reflect your new marital status. To make sure your assets will go to your new spouse if you die or become incapacitated, it’s essential to update beneficiaries and make arrangements for shared assets. Additionally, you might consider creating provisions to protect your spouse financially and emotionally in the event of your passing.
09 | You Got a Divorce
The end of a marriage is a significant life event that requires immediate attention to your estate plan. After a divorce, you’ll likely need to revoke and redo your entire estate plan. This includes creating a new will and trust, updating beneficiary designations on life insurance and retirement accounts, and revising asset distribution to reflect your new circumstances and relationships.
If you have children from your previous marriage, you may need to revisit guardianship arrangements and provide for their financial needs accordingly.
10 | The Law Changed
Tax laws are subject to change, and revisions to estate tax exemptions can have a substantial impact on your estate plan. If there are significant changes in federal or state estate tax laws, it's crucial to review your plan with an estate planning attorney to minimize tax burdens and protect your wealth for your loved ones.
Even if you weren’t affected by federal or state estate taxes in the past, changes in federal estate tax law are scheduled for 2026, so now is the time to review whether this change will affect your family’s estate tax filing status. Estate taxes can cost your family tens or even hundreds of thousands of dollars, but these tax liabilities are optional and can be avoided with proper estate planning.
We’re Here to Help
Your estate plan serves as the bedrock protecting your family and finances, not just for today but also for the future. However, estate planning isn't a one-time task - it should adapt and evolve alongside the changes in your life.
Our mission is to guide you through all of life's changes, ensuring your estate plan remains up-to-date and effective no matter what life brings your way. That's why we offer our clients a complimentary review of your estate plan every three years, and we encourage you to reach out at any time before then with questions about life changes or events that might affect your plan.
If you’re ready to create an estate plan that protects your loved ones and your legacy, or would like us to review your existing plan, please schedule a complimentary consultation today. We’d be honored to help ensure your family’s well-being for years to come.
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.