When to Update Your Estate Plan: Major Life Events

Creating an estate plan is one of the most responsible things you can do for your family. But signing the documents is not the end of the story — it is the beginning.

Life changes. And when it does, your estate plan needs to keep up.

Many people create a will or trust at one point in their lives and never look at it again. Years later, they discover that the documents no longer reflect their wishes, their family, or their assets. Sometimes the consequences are minor. Sometimes they are devastating.

Here are the major life events that should prompt a review — and often a revision — of your estate plan.

Marriage is one of the most significant legal events in a person's life, and it has major implications for estate planning.

If you had a will before you married, it may not automatically account for your new spouse. In Pennsylvania, a surviving spouse has certain statutory rights to a share of the estate — but those rights may not align with what you actually want your spouse to receive.

After marriage, you should:

• Update your will to reflect your spouse's role in your estate plan
• Review beneficiary designations on retirement accounts, life insurance, and other accounts — these pass outside of your will and need to be updated separately
• Consider a durable power of attorney naming your spouse as your agent
• Update your healthcare documents to name your spouse as your healthcare proxy

If you are entering a second marriage — especially one where both spouses have children from prior relationships — estate planning becomes even more important. A thoughtful plan can protect both your spouse and your children from a previous relationship.

The birth or adoption of a child is perhaps the most urgent trigger for estate planning — or for updating an existing plan.

Your will should:

• Name a guardian for your minor child if both parents die or are unable to care for them
• Name a trustee to manage assets on behalf of your child until they reach an appropriate age
• Specify the age at which your child will receive their inheritance outright (many parents choose 25 or 30 rather than 18)

If you already have a will, review it to make sure your new child is included. Some wills include language that automatically covers "after-born children," but not all do — and you should not assume.

Also update beneficiary designations on life insurance and retirement accounts to reflect your growing family.

Divorce has significant estate planning consequences that people often overlook in the chaos of the process.

In Pennsylvania, a divorce automatically revokes any provisions in your will that benefit your former spouse — but only once the divorce is final. During a separation, your estranged spouse may still be entitled to inherit under your existing documents.

After a divorce (or during a separation, if you want to be proactive), you should:

• Revise your will to remove your former spouse and update your beneficiaries
• Update beneficiary designations — these are NOT automatically revoked by divorce in Pennsylvania, so your ex-spouse could still receive your retirement account or life insurance if you do not update them
• Revoke any power of attorney naming your former spouse as your agent
• Update your healthcare documents to name a new healthcare proxy
• Review any joint trusts you created during the marriage

This is one area where procrastination can have serious consequences. Do not wait until the divorce is finalized to start thinking about these updates.

If someone named in your estate plan dies — a beneficiary, your executor, your agent under a power of attorney, or a named guardian — your documents may no longer work as intended.

For example, if your will leaves everything to your spouse and your spouse predeceases you, what happens? If your will does not name an alternate beneficiary, the assets may pass under Pennsylvania's intestacy laws rather than according to your wishes.

After the death of anyone named in your estate plan, review your documents to:

• Name a new beneficiary or alternate beneficiary
• Appoint a new executor or successor trustee
• Designate a new agent under your power of attorney
• Name a new guardian for minor children

Estate planning is not just about who gets what — it is also about how assets are structured and transferred. A significant change in your financial picture may require updates to your plan.

Consider a review if you:

• Purchase real estate — especially if you want it held in a trust or transferred to a specific person
• Receive an inheritance — which may change the size and composition of your estate
• Start or sell a business — business succession planning is a specialized area that deserves careful attention
• Experience a significant increase or decrease in wealth — which may affect tax planning strategies
• Acquire new accounts — which need beneficiary designations reviewed

Estate planning laws vary by state. If you move to Pennsylvania from another state — or leave Pennsylvania — your existing documents may not be fully valid or may not work as intended under the new state's laws.

Pennsylvania has specific requirements for how wills and powers of attorney must be executed. A will from another state may be recognized in Pennsylvania, but it is worth having a Pennsylvania attorney review it to confirm it meets local requirements and reflects current law.

Even without a major life event, most estate planning attorneys recommend reviewing your documents every three to five years. Laws change, family dynamics evolve, and your own priorities may shift.

A review does not always mean a revision. Sometimes you look at your documents and confirm that everything still reflects your wishes. That peace of mind alone is worth the time.

Many people avoid updating their estate plan because they imagine it will be complicated or expensive. In most cases, it is neither. A simple amendment to an existing will (called a "codicil") or a straightforward revision can often be completed in a single meeting.

At Berkleigh Law, we work with families throughout Berks County to keep their estate plans current and effective. If you have experienced a major life event — or if it has simply been a few years since you last looked at your documents — we would be glad to help you take stock of where things stand.

Your plan should reflect your life as it is today, not as it was years ago.