Don't let changes in family dynamics impact your estate plan. Learn when and why you should update your plan, and the tools available to address your family's unique needs.
March 28, 2023
At Riverside Healthcare Foundation, we believe that everyone needs to have an estate plan in place. Most people focus on assets, taxes, and any changes to legislation that may affect their loved ones in the event of their incapacity or death—but many often forget how changes in family dynamics and circumstances can affect even the most well thought out estate plan.
Below are several situations in which we encourage people in our community to update an existing estate plan—or create a plan for the first time.
Children reach the age of majority
When beneficiaries under your estate plan grow into adulthood, the manner in which you plan to transfer your assets will likely change. Special needs individuals, for example, may now be eligible for government assistance—and the provisions of your existing plan may disqualify them from receiving those benefits in the future. Also, paying for higher education can be a focus as the children become adults. This may prompt changes in distribution amounts or requirements before the beneficiary can receive the money.
You are getting married for the first time
Marriage changes the structure of your family, and may change how you choose to distribute your assets. It also may require you to add your new spouse as a beneficiary on retirement accounts or life insurance policies, as well as to update your personal inventory of assets resulting from the purchase, sale, or consolidation that typically occurs with a marriage. If you are changing your legal name, make sure to update all of the relevant documents—including insurance policies, bank accounts, credit card companies, and property deeds.
You are getting remarried
In addition to the things to consider when you are getting married for the first time, a second marriage has the added concern about how to provide financial security for your new spouse while providing an inheritance for your children from a first marriage. This scenario can also affect the timing of how you want the inheritance to be distributed and the amount that is allocated to each loved one. Several tools may be used to address your family's unique needs, such as annuities, irrevocable life insurance trusts, or splitting your estate among the beneficiaries.
The birth or adoption of a child or children
Whether you are giving birth to or adopting a child, overseeing a minor’s life can be overwhelming. Make sure you have plans prepared if you are not around. This includes having a will or trust prepared to outline financial distributions and management of funds for the child(ren), deciding on a guardian and any other necessary fiduciaries, and ensuring that accounts and/or life insurance policies left for the children are properly handled.
What happens next?
There are no right or wrong answers regarding the estate plan for your family’s needs—and we hope you find that comforting. It is key to work with an experienced and knowledgeable estate planning professional to ensure you can celebrate these life changes without worrying about whether your true wishes are carried out when it counts.
Are you looking to plan your legacy gifts or include Riverside Healthcare Foundation in your estate? Our estate planning experts at Riverside Healthcare Foundation are here to help you. Whether you need guidance on updating your estate plan or want to learn more about planned giving options, we have the knowledge and resources to assist you. Contact Ann Offermann at AOffermann@rhc.net or (815) 933-7799 to start planning today.