It is important to periodically review your will and estate plan, especially in light of the following changes in your life….
Children
Most parents are concerned about how their children will be cared for in the event that both parents die. It is imperative to name a guardian for your minor children within your will. Also, parents should consider a trust if they wish to stagger financial inheritance distributions for their children, instead of having the kids receive a lump sum at the age of 18.
Marriage
It is important to note that your spouse does not automatically become the executor of your estate. Furthermore, you want to assure that your assets are distributed according to your intentions. In the event that you die without a will, also known as dying “intestate,” the state in which you reside will dictate the distribution of your assets.
Divorce
In most states, a divorce revokes the provisions of a will that apply to the former spouse, which will require the need to create a new will. In addition, you should review your durable power of attorney, health care proxy, beneficiary designations, and other estate planning documents to ensure that they concur with your new distribution and planning intentions.
Remarriage
If you wish to separate your assets and nullify your inheritance rights to each other’s estates, a prenuptial agreement should be contemplated. Also, if you and your new spouse have children from prior marriages, a distribution plan should be discussed to assure that all children are provided for as intended.
Middle Age
As you age, your assets tend to grow. It may be likely that when you initially executed your estate plan, you did not have the assets that you do now. In the event that you have assets including but not limited to a house, retirement plans, brokerage accounts, life insurance, etc… that exceed the Massachusetts threshold of $1 Million, an estate tax may be owed upon your death. As such, you may wish to consider trusts that facilitate sheltering these assets from MA estate tax.
Death of Spouse
Upon the death of a spouse, you may need to draft a new will or designate others to become your health care agent and durable power of attorney. Further, there may be advantages to disclaiming some of your inheritance for the benefit of contingent beneficiaries, such as your children. This is true especially if your estate has potential estate tax implications.
Life changes, and so should your estate plan. An experienced estate planning attorney should be able to assist you to assure that your plan is current as you navigate your ever-changing life.
Todd C. Ratner, Esq.
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