Fall is here, and the change of seasons ushers in a reminder that we all go through transitions from one season of life to another. We generally recommend that everyone revisit their estate planning every three years to make sure that their planning aligns with their current objectives and circumstances. 

Major life events can have a big impact on estate planning. Here are some situations that warrant a meeting with your estate planning attorney. 

Children 

If you have expanded your family through childbirth or adoption, don’t forget that proper estate planning is essential for allowing you to select the guardians who would raise your minor children if both you and your spouse died prematurely. If you fail to do proper estate planning, the probate court will make this decision without your input. 

Marital Changes 

Getting married, especially for couples who are blending families, should prompt a thorough review of estate planning documents. Most married couples, including those where either spouse has children from a prior relationship, generally hope to ensure that their spouse is well taken care of financially at their death. They also want to ensure that their children receive all or a portion of their remaining wealth when the second spouse dies. Therefore, a newly married couple should meet with an estate planning attorney to answer three big picture questions: 

1. To whom and how are the assets to pass at the first spouse’s death? 
2. To whom and how are the remaining assets to pass at the second (surviving) spouse’s death? 
3. What is the primary estate planning document to be used to address the answers to questions 1 & 2, which can be either a Will or a Revocable Living Trust (in conjunction with a pour-over Will)? 

When divorce comes into the picture, it’s wise to consult an experienced estate planning attorney as soon as possible to avoid unintended outcomes. If a spouse dies in the middle of divorce proceedings, the parties are still considered legally married. For this reason, a divorcing couple should be aware that a surviving spouse may lay claim to the other spouse’s assets if one of them dies before the divorce is final. In addition, assets and accounts on which the spouse was listed as a direct beneficiary – such as life insurance or financial accounts – will pass outright to the surviving spouse, even if the couple is estranged. Even after a divorce has become final, beneficiary designations generally need to be updated to remove the former spouse – that does not happen automatically under Georgia law. In addition, a divorce often requires the former spouses to take other steps in order to fully comply with any divorce settlement, including things like having one or both spouses execute deeds in order to have properties retitled from both of the ex-spouses’ names to only one of their names, and getting qualified domestic relations orders (QDROs) issued in order to divide up IRA and 401(k) accounts. 

Family Estrangement 

It’s unfortunate, but family relationships often become strained over time. One of the benefits of proper estate planning is minimizing the potential for conflict over an estate when someone dies. Without proper planning, confusion and misunderstandings can create or aggravate family tensions, which can increase the chance of dysfunction, disharmony, and disputes. 

If your family situation has changed, your estate plan should reflect your true desires and intent, such as preventing a beneficiary who shouldn’t receive an outright inheritance from getting direct access to those assets or disinheriting someone who has engaged in harmful behavior or become estranged.  

Moving 

The question of needing to update your estate planning documents if you move to a different state is a common one. If a Will was valid in the state where it was created, it should be respected as valid in another state. However, each state has its own probate and estate administration laws, and this means that a Will that would have worked beautifully in the state in which it was written may not work as well in another state. Therefore, the general advice is to seek an estate planning attorney in the new state of residence to update estate planning documents such as a Will, a Power of Attorney, and an Advanced Directive for Health Care so that they will work as efficiently as possible in the new state. 

Don’t Forget About Beneficiary Designations 

It is of key importance that asset ownership and beneficiary designations are periodically reviewed considering a person’s changing circumstances and changes in the law. Failing to update beneficiary designations can lead to undesirable outcomes such as: 

• The wrong party receiving your assets after your death (such as a prior spouse, only one of multiple children, or your stepchildren over your natural children). 
• The loss of income tax deferral benefits due to an inappropriate beneficiary designation on your IRA and qualified plan accounts. 
• Creditors claiming your assets instead of your intended beneficiaries, if your economic circumstances have taken a turn for the worse. 

The Metro Atlanta-based estate planning attorneys at Morgan & DiSalvo would be pleased to schedule a consultation with you to revisit and update your estate planning documents. If you’re looking for help updating a Will or Trust in Georgia, please call (678) 720-0750 or email info@morgandisalvo.com.