Many people try to establish estate plans that can protect them for years, if not decades. They select personal representatives who are likely to remain healthy well into the testator’s golden years. They use broad language when talking about the distribution of their property to their beneficiaries.
The goal is to limit how frequently they have to review and update estate planning documents. While many testators can rely on the same documents for years, changes in the circumstances may make changes to estate planning paperwork necessary. Familial circumstances often have a profound impact on estate planning decisions. Any of the three changes below might inspire a testator to review and modify their documents.
The death of a family member
When a loved one dies, the consequences of their passing can have long-term implications for the entire family. If the deceased individual was one of the beneficiaries listed in the estate plan, removing them and reallocating their inheritance is typically a smart decision. If the deceased individual would have held a position of authority, such as personal representative or trustee, the testator likely needs to choose someone else to take over that position. Otherwise, outdated documents could lead to conflict after the testator dies.
Divorce or remarriage
Any change in marital circumstances can influence estate planning needs and what rules apply. If a testator divorces, they typically need to remove their former spouse as a beneficiary and reassign any authority they may have designated to their spouse. If a testator marries, they likely need to update their documents to include their spouse and possibly any stepchildren. If beneficiaries marry or divorce, making adjustments to an estate plan might be necessary then as well.
The birth of new family members
Children and grandchildren are often among the main beneficiaries who inherit from an estate. As families grow, estate plans need to change as well. The birth of a first child requires careful revisions to an estate plan. A new parent needs to select a guardian and arrange for the financial support of their child. They may even need to create a trust. Growing families also require estate updates. Parents with multiple children and grandparents often need to modify their documents to include new family members.
Taking the time to make updates to an estate plan as family circumstances change can help individuals protect themselves and their loved ones. Families often rely on estate plans for financial support and guidance after a loss. Those who update their estate plans protect against scenarios in which their documents may be subject to challenges in probate court.