One of the more common questions I get: when should I think about updating my estate plan?

It’s an important question, and the answer is simultaneously simple and complex.

Simple answer: a review of one’s estate plan should accompany all major life events.

So…what qualifies as a “major life event”?

Generally speaking, there are two categories to consider:

Family Changes

To name a few: marriage, the birth or adoption of a child, divorce, illness or death in the family, a move out-of-state (or country). Intended beneficiaries likely change, guardian appointments may become necessary – illness, death, or divorce may require a restructure of assets and fiduciary responsibilities. (Most divorce agreements I’ve seen require updated estate plans; regardless, it may be important to some parents to protect their children’s inheritance from subsequent spouses.)

Financial Changes

Here, think about buying or selling a home or other significant property, a liquidity event, retirement, starting or winding down a business, and/or acquiring a life insurance policy. Such shifts can impact how much money you may want to leave to beneficiaries, estate and gift tax liability, income tax liability, charitable giving – and whether administration proceedings will be required in multiple states.

When in doubt, it’s worth discussing with an expert to ensure that you and your family have what you need in place. As always, if you have any questions or would like to discuss further, please feel free to reach out.