Is Your Estate Plan Keeping Up With Your Life?
Recently, I was chatting with a mom of teenagers about her son’s upcoming 18th birthday. Of course, she knew the big day was coming, as she was already planning the party.
But mid-conversation, the legal reality suddenly hit her.
It dawned on her that the moment he blows out the candles, she loses the legal authority to make medical decisions for him or access his accounts. Even though he is still a high school senior living under her roof and eating her food, in the eyes of the law, he is a stranger to her. The realization was jarring.
It was a powerful reminder of how simple milestones pop up and carry legal consequences we often don't expect. As we start a fresh year, take a moment to review this "At a Glance" list. If you have gone through any of these changes recently—or see them on the horizon—we should talk about updating your documents.
1. A Child Reaching Adulthood- As mentioned above, once a child turns 18, parents lose automatic authority. Every young adult needs a Power of Attorney, Advance Directive, and HIPAA release so parents can still help in an emergency.
2. Retirement- Retirement marks a shift from accumulating assets to using them. This is the time to ensure your estate plan is structured to protect your nest egg, manage long-term care concerns, and fit your new financial reality.
3. Divorce- If you have ended a marriage, you must update your Will and Trust immediately. Crucially, you must also update beneficiary designations on insurance and retirement accounts, or an ex-spouse might unintentionally inherit your assets.
4. Loss of a Spouse or Heir- If your spouse has passed, or if a named beneficiary or trustee has died, your plan likely has "holes" that need to be filled. You need to ensure there are backups in place so your estate doesn't end up in court or in the hands of unintended recipients.
Your Plan is a Living Document
Remember, your life doesn't stand still, and your estate plan shouldn't either. Dealing with legal documents can easily fall to the bottom of the to-do list, but these milestones are important reminders that an outdated plan can sometimes be just as risky as having no plan at all.
If you identified with any of these life changes, or if it has simply been a while since you reviewed your binder, we are here to help. We invite you to call our office at (503) 235-5150 to schedule a consultation so we can review your goals and ensure your plan protects everything and everyone that matters to you.