How Do Major Life Events Impact Your Estate Plan?

It is true that the only real constant in life is change. Some are unexpected, some are joyous, and some cause real grief. Births, deaths, and divorce are just a few of the life changes that can impact your estate plan. These life events can change your legal responsibilities, your wishes, and how your property is distributed after you pass away. If you fail to properly review and update your documents, outdated instructions and state laws could determine what happens to your loved ones, and to your assets. Below, our Utah estate planning attorney outlines how important life events may impact your plan.

Marriage

Getting married does not automatically revoke your existing will. However, it will grant your new spouse certain statutory rights to part of your estate. This could impact the portion of your estate your children receive, particularly children from a previous relationship. Updating your plan after marriage can ensure that your spouse and all of your children receive their intended shares.

Divorce

Although marriage can drastically impact your estate plan, divorce may impact it even more. If you get a divorce, the law in Utah automatically revokes any portion of your will or trust that benefits your former spouse. The courts will treat these documents as though your spouse predeceased you and so, they cannot act as your personal representative or beneficiary.

While certain aspects of your estate plan will be impacted by divorce, others may not. For example, if you named your former spouse as a beneficiary on a life insurance policy or bank account, this will not be impacted by divorce. This could allow your former partner to receive a share you no longer intended them to have. For this reason, it is critical to update your plan after divorce.

Births and Adoption 

If you have a child, either through birth or adoption, it is important that you change your estate plan to name a guardian for them in case something happens to you. You should also change important documents such as your trust or will to include new family members as beneficiaries.

Death

If one of your beneficiaries, your agent, personal representative, or other person important to your estate plan passes away before you, it is critical that you update your plan. You will need to reappoint people to fulfill these roles so your wishes are respected and the court does not decide.

Relocation

If you created an estate plan and then moved to Utah, it is critical to ensure that your formal wishes still comply with state law. In Utah, out-of-state documents are typically enforced. Still, you must ensure that your healthcare directives and powers of attorney are executed according to state law and are legally enforceable.

Our Estate Planning Attorney in Utah Can Help After a Life Change 

If you have recently experienced a major life change and now need to update your plan, it is critical to work with an attorney. At AGS Law, our Utah estate planning attorney can review your plan with you, make the necessary changes, and ensure your legacy is protected. Call us today at 801-477-6144 or fill out our online form to schedule a consultation and to learn more about how we can help.

Source:

le.utah.gov/xcode/Title75/Chapter2/C75-2-P1_1800010118000101.pdf