Whether your life changes by choice or circumstance, you need to review your estate plan.
First, I want to encourage you.
By asking this question, you are on the right track. Most people do not accept that new circumstances may require changes to their will, power of attorney or other legal documents. They consider it a one-and-done deal.
One of the worst things you can do is get an estate plan and then lock it away for 10 or 20 years.
Why?
This gives you a false sense of security.
A lot can (and does) happen in a decade.
A Middletown Transcript article, titled "Game-changing life transitions that need attention," addresses some major life transitions.
Retirement
When you retire, the flow of your finances changes. At this point, your income becomes your IRAs, Social Security and Pension plan.
What do you need to do?
Make sure your decisions in retirement are consistent with your estate planning goals.
Sale of Business
When you sell your business, your assets change. New issues arise in regard to tax planning, asset protection and whether you will want to create a trust.
Divorce
Although a divorce attorney may be able to help negotiate issues such as custody of children and alimony agreements, your estate plan will change significantly.
How do you disinherit your spouse while providing for your children?
First, you will need to review your beneficiary designations on any accounts.
Second, you will need to determine how you want your children to receive their inheritance when you pass away.
Disability of Adult Child
You are probably the primary caretaker for this child.
When you die, who will be his or her guardian? Who will take care of his or her financial needs?
A special needs trust should be considered.
Death of a Spouse or Other Loved One
Losing a loved one is painful.
It can also be a mess if that person did not plan accordingly for estate taxes or the distribution of his or her estate.
If you are left to settle the estate, you will understand the need for help from an experienced estate planning attorney.
After the estate is finally squared away, be sure to update your own beneficiaries, will and power of attorney.
Receiving an Inheritance
Receiving an inheritance from a loved one is bitter sweet. Help continue their legacy of love and responsibility.
How?
Talk with an experienced estate planning attorney to help mitigate the cost or tax burden from this windfall and to create a plan of your own or update the one you have.
Even if one of these life changes does not apply to your situation, you should review your entire estate plan every two to three years.
So, how do you find an "experienced" estate planning attorney?
First, ask around. Friends, family and other professional advisors are trustworthy sources.
Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").
Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.
How?
Two helpful online resources are just a mouse click away to assist with your due diligence: Avvo.com and Lawyers.com.
Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.
In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: Middletown Transcript (May 31, 2016) "Game-changing life transitions that need attention"
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