There’s a popular saying: “Life is what happens while you’re making other plans.” But you could also say that life is what forces us to rethink the plans we already set in place some time ago. It’s good to know how specific life transitions can affect the instructions and instruments that you’re leaving to your executor, heirs, and financial or legal institutions. Here are some of the major life events that should prompt you to review and/or revise your estate plan.
Divorce
No matter how enthusiastic you were about leaving all of your assets to your spouse, you would probably feel differently once that spouse has become your ex-spouse. If you’ve undergone a divorce in the State of Arizona, most divorce decrees revoke the prior estate plan the married couple once shared, effectively rendering the estate plan null and void. In fact, Arizona law even revokes any gifts you plan to leave to your ex-spouse’s relatives unless it is specifically addressed in a new estate plan It’s time to draw up an all-new estate plan.
Death of Spouse
Did you and your spouse prepare a joint trust, or individual trusts, to house assets as a means of avoiding the headaches of probate court? If so, be advised that a trust can cause certain headaches of its own where your estate planning is concerned. You’ll need to check the estate plan in questions carefully to determine what your obligations are for carrying out your spouse’s wishes. If someone other than you is the Successor Trustee, you need to have an attorney review the estate plan to confirm and clarify your rights as Beneficiary. Certain portions of an estate can become irrevocable by the death of a spouse, so you’ll to know where you stand.
Changes in Real Property Ownership
When an estate plan originally designed for two spouses ends up in the hands of a single spouse, either through divorce or through that spouse’s death, you need to revise your real property ownership information. Additionally, if you buy a new piece of real property, you must make certain that it is included in your estate plan. Also, if you sell a property within your estate plan, you will need to modify the plan to remove that property from your current estate plan.
Death of Agent
The Agent in an estate plan is the individual you have assigned as the person of responsibility for specific aspects of your estate plan after you die, such as a POA (Power of Attorney) Agent plus a Health Care (Durable Power of Attorney) Agent. But if that Agent you’re counting on dies while you’re still alive or other factors make continuing of this person as Agent impractical, you need to make sure you assign a new Agent so your Power of Attorney doesn’t simply vanish into thin air.
Divorce of Agents
Have you designated co-Agents who are married to each other? If so, their divorce should trigger the need for you to revisit your estate plan. This situation can cause a great deal of confusion and conflict if both individuals are still named as Agents, when they might now have opposed interests or may not want to work with each other at all. You need to revise your estate plan to name one or the other as your Agent going forward — or assign a new Agent entirely.
Moving
Few life events can throw an estate plan into total disarray quite so quickly and decisively as a relocation. An in-state move may require only modifying the estate plan’s address information, or perhaps the creation of a new Beneficiary Deed. An interstate or international move, however, opens up a great many questions — from the disposition of your Arizona assets to the validity of your Arizona documents. Addressing the new change of location and circumstances with an attorney licensed to practice law at your new residence is essential for updating your state plan correctly.</p>
© 2019 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction
