Marriage, a new child, or a major financial change can leave an older estate plan out of step with your life. The documents you signed years ago may still be legally valid, but that does not mean they still reflect your family, property, or wishes. Reviewing your estate plan every three to five years, and after major life events, can prevent problems later.
Marriage or Divorce
Marriage can change who you want making medical, financial, and inheritance decisions. After getting married, review your Last Will and Testament, trust, powers of attorney, health care directive, property ownership, and beneficiary designations.
A divorce also calls for a careful review. California law may revoke certain gifts or appointments involving a former spouse, but you should not assume every document or beneficiary designation changes automatically. Retirement plans, life insurance policies, payable-on-death accounts, and other assets may follow different rules. Updating each document and account directly provides greater clarity.
The Birth or Adoption of a Child
A new child often changes the purpose of an estate plan. Parents typically want to nominate a guardian, establish a trust for the child’s inheritance, and select someone to manage the money until the child reaches an appropriate age.
Without clear instructions, a court may have to select a guardian if no parent is available to care for the child. The court may also need to appoint someone to oversee inherited assets. Parents should review their life insurance and decide whether the plan provides enough support for the child’s future needs.
A Death or Change in an Important Relationship
Your plan may name people as beneficiaries, trustees, executors, guardians, financial agents, or health care decision-makers. If one of them dies, becomes ill, moves away, or is no longer someone you trust, the plan may not work as intended.
Even when your first choice can still serve, it is wise to name backups. A review lets you confirm that everyone selected remains willing and able to accept the responsibility.
A Major Change in Your Finances
Buying or selling a home, receiving an inheritance, starting a business, or experiencing a significant change in wealth can affect your plan. California homeowners with a living trust should confirm that newly purchased real estate has been properly transferred into the trust when appropriate.
A trust generally controls only assets that have been properly transferred to it or otherwise made payable to it. If major property remains outside the trust, it may still be subject to probate or pass in a way that conflicts with the rest of the plan. Some property requires a deed, account change, or beneficiary designation rather than a simple update to an asset list.
Changes in Health or Capacity
A serious diagnosis, disability, or decline in health should prompt an immediate review. An advance health care directive identifies who can make medical decisions, while a durable power of attorney allows a chosen agent to handle financial matters.
These documents should be updated while you have the legal capacity to make your own decisions. Waiting until a crisis can leave relatives seeking court authority to manage matters that could have been addressed privately.
Changes in the Law
Federal and California laws change over time. New rules may affect estate taxes, retirement accounts, property taxes, or transfers between generations. Periodic reviews allow an attorney to identify legal changes that matter to you.
Review Your Estate Plan With JPS Law Offices
Attorney Jocelyn Portales-Soto helps individuals and families throughout California review wills, trusts, powers of attorney, and health care directives so their plans continue to reflect their lives and goals.
Contact JPS Law Offices if several years have passed since your last review or a major change has occurred in your family, finances, health, or property.
