When is a Good Time to Update My Estate Plan?

Clients frequently ask, "when is a good time to update my estate plan?" Before answering that question, let me just mention the key documents of an estate plan. Typically, an estate plan includes any combination of a power of attorney (healthcare proxy), durable power of attorney, will, and advance directive. These may be added, amended, or even removed depending on stages of life or life events. Now let's look at some life events that should trigger an update to your estate plan.

Marriage and Relationships

A new marriage is always a good time to start planning for the future and any future without you. It’s a misconception that a surviving spouse automatically inherits everything upon the death of a spouse. For example, if your marriage is not your first marriage, and you have children from a previous relationship, you should update your estate plan. This way you can provide for your new spouse and any children from this marriage. In the event of your death without any children, your spouse will only inherit a percentage of your estate. And, the remaining would go to your parents. As you see, these are complicated issues that need to be addressed in your estate plan.

Additionally and fortunately, in New Jersey, spousal designations are revoked after a divorce. However, it’s still a good idea to update your verbiage to avoid any challenges in the future, especially if there are any changes in the law.

A paramour is not entitled to any part of your estate according to New Jersey law. So if you would like to take care of him or her in the event of your passing, you must include him/her in your will.

The death of a spouse may also require amendments to one’s will.

Birth or Adoption of a Child

Bringing a new child into the family is one of life's greatest joys. However, with it comes responsibility - both financial and the overall well-being of the child. Therefore, you need to update your plan for the kids. One of the most important issues regarding children is the appointment of a legal guardian to raise your child in the event of your (and your spouse’s/co-parent’s) death(s).

Sometimes grandparents elect to designate a portion of their estate to go directly to a grandchild. If this is their wish, they must also update their estate plans.

In any event, with minor beneficiaries, there are many things to consider. For example, do you want to set up a trust so a guardian can financially support your children? Or have controls in place for adult children so they do not blow through all of their inheritance.

Other Changes

In the event of your moving out of state, your will may not be recognized and will need to be updated. You may also want to consider any designations for durable power of attorney and healthcare proxy; perhaps you’d like to designate someone geographically closer to you.

If your estate is to increase or decrease drastically or anticipate a drastic change, you may want to consider updating your will and beneficiaries.

Sometimes people experience a change of heart and would like to redistribute their estate, which would also require an updated will.

A change in health status, such as a worsening of a medical condition, may also prompt changes to a will, healthcare proxy, and durable power of attorney.

Is It Time for an Update?

These are complex and nuanced matters, with an added emotional component. Please contact our compassionate team of experienced attorneys to see how we can assist you.

In the meantime, SmartAsset financial advisors have put together a great summary of New Jersey inheritance laws.