Major Life Events That Should Prompt an Update to Your Estate Plan

Life is full of changes, and some can have a significant impact on your estate. It’s important that your estate plan reflects your current situation and wishes to avoid unintended consequences that come from changing circumstances. Some of the major life events that should prompt a review and potential update to your estate plan are:

• Marriage or Divorce: When a marriage is solemnized, your new spouse automatically has rights that stem from your obligation to support them (yes – it goes both ways!) On the other side, Ohio Revised Code Sections 5815.31-34 provide that a divorce decree automatically terminates an ex-spouse’s interest in many things, which can create a gap in your plans, especially if there’s kids involved. Updating your estate plan ensures that your spouse or former spouse is accounted for appropriately.

  
  

• Birth or Adoption of your First Child: Welcoming your first child into your family is a joyous occasion, but it also comes with responsibilities. Updating your estate plan can help ensure that your child is provided for and that guardianship arrangements are in place. If your plan was originally drafted by an experienced attorney, they often accounted for additional children, so an update might not be needed then.

  
  

• Death of a Loved One: The loss of a loved one who is named in your estate plan, particularly those who are a beneficiary or executor/trustee, may require adjustments to reflect your current wishes.

  
  

• Significant Financial Changes: Whether you’ve received an inheritance, started a business, or experienced a financial setback, changes in your financial situation may necessitate updates to your estate plan.

  
  

• Relocation or New Real Estate: Moving to or from Ohio can impact your estate plan due to differences in state laws.

  
  

• Grown Children, Old Siblings: You may have originally completed your plan when your children were young and cute, but now they’re old enough to take care of things (or maybe not!). And maybe you named a sibling who was “up to the task” decades ago, but now they are aged out of that capacity. Without a formal amendment or codicil, your heirs might have some issues trying to resolve affairs.

  
  

• Changing People or Charities: Many people designate a friend as Trustee/Executor, or plan for some charitable giving. If you’ve had a falling out with that friend, or maybe you want to designate some alternate charitable giving, it’s time to make a formal update to your plan.

  
  

• Health Changes: A serious illness or disability may require updates to your healthcare directives or powers of attorney.

Regularly reviewing your estate plan, especially after major life events, helps ensure that your wishes are honored and your loved ones are protected. If you’ve experienced any of these changes, we encourage you to contact our office to schedule a consultation.

This article is for informational purposes only and does not constitute legal advice. For personalized guidance, please consult with an attorney.

Attorney Tom Schmitt