10 Life Events That Mean It’s Time to Update Your Estate Plan

An estate plan is rarely a “one and done” document. Life changes, and your plan should change with it. Over the course of a lifetime, people experience milestones such as marriage, welcoming children, or purchasing a home. Others face unexpected challenges like illness, disability, or the loss of a loved one.

As your health, priorities, and financial goals evolve, the estate plan you created years ago may no longer meet your needs. For these reasons, estate plans should be reviewed and updated throughout your life. Major milestones or transitions are natural times to revisit your documents and ensure they still reflect your wishes.

This post highlights 10 common life events that may require updating your estate plan:

1.       Marriage & Divorce

2.       Birth of a Child

3.       Children Maturing to Adulthood

4.       Death of a Spouse

5.       Health Challenges

6.       Illness or Disability of Beneficiaries

7.       Outdated Power of Attorney

8.       Starting or Taking Over a Business

9.       Changing Churches or Charitable Goals

10.  Entering a New Phase of Life

Disclaimer: This article is for general informational purposes only and is not legal advice. If you need guidance on updating or starting your estate plan, you should consult with a qualified estate planning attorney. 

1. If You Were Recently Married or Divorced

Both marriage and divorce are major life events that require an updated estate plan.

• Marriage: If you created your estate plan before getting married, you’ll need to update it to include your spouse. Without revisions, your spouse may only be entitled to one-third of your estate under Pennsylvania law. Updating your plan ensures your spouse receives the property you intend and allows you both to decide how your growing wealth should be distributed. If you plan to have children, further changes may be necessary. Don’t forget to update beneficiary designations on financial accounts and life insurance policies.

  
  

• Divorce: After divorce, it’s critical to revise your estate plan to prevent assets from unintentionally passing to your former spouse. For example, if you fail to remove your ex-spouse as a beneficiary on a life insurance policy, they may still be entitled to the proceeds. In some cases, Pennsylvania law treats a former spouse as having predeceased the decedent, meaning assets pass to contingent beneficiaries. If none are named, then property passes according to Pennsylvania’s intestacy laws. This outcome may not align with your wishes, making updates essential to avoid unintended consequences.

  
  

2. If You Are Expecting Your First (or Another) Child

One of the most important steps new parents can take is creating or updating an estate plan. A will allows parents to nominate a guardian to care for the physical and financial well-being of their children if both parents pass away while the children are still minors.

If you are expecting a child, or already have children but no estate plan, this is a critical way to protect your child’s future. Additionally, your current will may or may not address what should happen if you have additional children born or adopted after executing your estate plan. While Pennsylvania law does provide default rules for this situation, updating your estate plan ensures your wishes are clear and legally documented.

Taking action now provides peace of mind, knowing your children will be cared for according to your intentions.

3. When Your Children Are No Longer Minors

This situation signals that many years have likely passed since you last reviewed your estate plan. If your will names a guardian for your minor children, but those children are now adults, that provision no longer has any effect. However, there are still important reasons to update your estate plan.

As your children grow up, your estate planning needs shift:

• You may now want one of your adult children to serve as your executor or agent under a power of attorney.

• The personal representatives named in your old will may no longer be alive, in good health, or capable of managing your estate.

• Your will may even include a trust that no longer reflects your current wishes or financial goals.

  
  

If this much time has passed since you last signed your will, it’s a clear sign that your estate plan is due for a refresher. Updating your documents ensures they reflect your present circumstances and protect your family’s future.

4. If Your Spouse Has Passed Away

Most estate plans are designed so that a surviving spouse will inherit the estate, and that children or other beneficiaries will receive assets after the surviving spouse’s death. When a spouse passes away, however, it’s important to revisit your estate plan to ensure it reflects your current wishes and circumstances.

Key questions to consider include:

• Are you still comfortable with the person your will names as guardian for minor children?

• Has the size of your estate changed due to life insurance proceeds or other assets, making a trust more appropriate?

• Do you want your beneficiaries to receive their inheritance outright, or would you prefer to structure it in a trust for added protection?

  
  

The death of a spouse is a profound loss, and it often reshapes financial and personal priorities. Taking time to update your estate plan after such a tragedy ensures your documents align with your new goals and provide clarity for your loved ones.

5. If You Are Facing Health Challenges That May Require Long-Term Care

Many older Americans worry about how they will pay for long-term care and fear that the costs could exhaust their assets, leaving little or nothing for a surviving spouse or children. Estate planning can help address these concerns, but the most effective strategies often require advance planning.

For example: A Medicaid Asset Protection Trust can safeguard property while allowing someone to qualify for Medicaid. However, assets must be transferred into the trust at least five years before applying for Medicaid benefits. Otherwise, the applicant may face a penalty period that delays access to coverage.

While some last-minute options may exist, individuals who anticipate needing long-term care are far more successful in preserving wealth when they plan ahead. Updating your estate plan to account for potential healthcare costs can provide peace of mind and protect your family’s financial future.

6. If Any of Your Beneficiaries Have Become Seriously Ill or Disabled

If one of your children or other beneficiaries becomes seriously ill, it’s important to consider how their inheritance should be handled if they predecease you. Key questions include:

• Should their share pass directly to their children or surviving spouse?

• Or would you prefer their share to be divided among their siblings?

• If their children are minors, will you need to establish a trust or custodial account to manage the inheritance?

  
  

An estate planning attorney can help you walk through these options and ensure your plan reflects your wishes.

Additionally, if a beneficiary becomes eligible for public benefits due to a disability, it is critical to review your estate plan. An inheritance could unintentionally make them ineligible for those benefits. This could have significant consequences for the beneficiary if the inheritance is insufficient to cover their long-term healthcare, maintenance, and support. In these cases, updating your plan to include a special needs trust can protect their eligibility while still providing financial security.

7. If You Have a Power of Attorney That Is More Than a Decade Old

In July 2014, Pennsylvania enacted a new law that significantly changed the rules governing powers of attorney. Many of these updates strengthened the duties of the agent (the person you appoint to act on your behalf) and were designed to reduce the risk of abuse of authority.

While a power of attorney signed before 2014 is still legally valid, it may not provide the same level of protection as one drafted under the current law. Updating your document ensures that:

• Your power of attorney reflects the latest legal requirements in Pennsylvania.

• You benefit from the added safeguards intended to protect the person granting authority.

• The individual you appointed years ago is still the best choice for the role today.

  
  

If your power of attorney is more than ten years old, it’s wise to revisit it. Laws evolve, and so do relationships and circumstances. A quick update can give you peace of mind that your wishes will be honored and your interests protected.

8. If You Started Your Own Business or Took Over a Family Business

Owning a business adds another layer of complexity to estate planning. If you’ve started your own company or taken over a family business, it’s important to consider what will happen if you pass away unexpectedly.

Key questions to address include:

• Will your surviving spouse (or executor) be prepared to manage the business during the administration of your estate?

• Have you identified a successor who can step in to run operations?

• Do you have clear instructions about the future of the business, how it should be managed, and who should be in charge?

  
  

Your estate plan should reflect not only your personal wishes but also your business goals.

9. Have You Switched Churches or Changed Which Charities You Support?

If your will names your church or parish as a beneficiary but you later switch to a new congregation, it’s important to update your estate plan. Otherwise, any gift from your estate will go to the church or parish listed in your will at the time of your death, even if it’s not the one you currently attend.

The same principle applies to charitable giving. If you no longer support a charity designated in your will, you’ll need to revise your documents to remove them. Updating your estate plan ensures that your gifts reflect your current values and priorities, rather than outdated instructions.

10. Are You Transitioning to a Different Phase of Life?

At its core, estate planning is about preserving and passing on property according to your wishes. Over time, the way people think about their wealth naturally changes.

• In younger years, many adopt a wealth-building mindset. They may pursue education or military service, open retirement or investment accounts, start careers, and set savings goals such as buying a home, paying off student loans, or investing for the future. They may also reward themselves with larger purchases like vehicles, vacations, or investments expected to appreciate over time.

  
  

• As retirement approaches, priorities often shift to a wealth-preservation mindset. After years of hard work, people want to ensure their nest egg lasts, supports them and their spouse through potential health challenges or economic downturns, and leaves something for children or other heirs.

  
  

If you find yourself moving from a wealth-building perspective to a wealth-preservation perspective, it’s time to revisit your estate plan. A plan drafted during your accumulation years may not adequately protect assets from creditors or long-term care costs. Estate planning strategies for preservation often involve trusts or other tools that require proactive planning.

Even if you haven’t experienced a major milestone recently, a shift in how you view your wealth is reason enough to review your estate plan. Aligning your documents with your current goals and priorities ensures your plan continues to serve you and your loved ones.

Conclusion: Keep Your Estate Plan Current

Estate planning is not a one-time task. It’s an ongoing process that should evolve as your life changes. From marriage, divorce, and the birth of a child to health challenges, business ownership, or shifts in charitable giving, each milestone can reshape your priorities and affect how your estate should be managed.

By reviewing and updating your estate plan regularly, you ensure that:

• Your documents reflect your current wishes and values.

• Your loved ones are protected from unnecessary stress or uncertainty.

• Your assets are preserved and passed on in the way you intend.

  
  

Even if you haven’t experienced a major life event recently, a change in how you view your wealth or your long-term goals may be reason enough to revisit your plan. If any of these scenarios resonate with you, consider scheduling a consultation with Ferrara Law. Taking the time now to update your estate plan can provide peace of mind and clarity for both you and your loved ones.