Creating a will is an essential step in estate planning, ensuring your assets are distributed according to your wishes after your passing. However, drafting a will is not a one-time task. Life is full of changes—some of which can significantly impact your estate and your beneficiaries. Failing to update your will in response to these life events can lead to unintended consequences, potential legal challenges, and financial difficulties for your loved ones.
At Ritigstein Law, we understand that your estate plan needs to evolve as your life circumstances change. In this blog post, we’ll explore the key life events that should prompt you to revisit and potentially update your will, ensuring your estate plan remains current and reflective of your wishes.
1. Marriage or Divorce
One of the most significant life events that can affect your will is a change in marital status. Whether you’re getting married, divorced, or remarried, it’s crucial to review and update your will accordingly. New Jersey law provides protections for spouses, such as elective shares, which entitle a surviving spouse to a portion of the estate. However, these provisions may not reflect your intentions, especially after a divorce or remarriage, so updating your will is vital.
- Marriage: If you’ve recently gotten married, you’ll want to ensure that your spouse is included as a beneficiary in your will. Without an update, they may not receive the assets you intended for them.
- Divorce: In New Jersey, under N.J.S.A. § 3B:3-14, divorce automatically revokes provisions in your will that leave assets to your former spouse. However, to avoid legal ambiguity and ensure your intentions are clear, formally updating your will after divorce is essential.
- Remarriage: Remarriage brings additional complexities, especially if you have children from a previous marriage. Updating your will to reflect your new spouse and protect your children’s inheritance is critical. Additionally, prenuptial agreements can influence estate plans and should be carefully considered in second marriages.
2. Birth or Adoption of a Child
The birth or adoption of a child is a joyous occasion, but it also comes with the responsibility of ensuring that your child is protected in the event of your death. When you welcome a new child into your family, your will should be updated to:
- Name Guardians: Under N.J.S.A. § 3B:12-23, appointing guardians for your minor children ensures that, if something happens to you, your children will be cared for by someone you trust. Failing to name a guardian could lead to family disputes or court intervention.
- Allocate Assets: Your will should outline how your assets will be distributed among your children. Setting up a trust to manage assets until your children reach a certain age is a common and effective estate planning strategy in New Jersey.
By updating your will after the birth or adoption of a child, you can ensure your children are financially secure and well-cared for, even in your absence.
3. Death of a Beneficiary or Executor
Life is unpredictable, and there may come a time when a beneficiary or executor passes away before you. When this happens, it’s crucial to update your will as soon as possible to:
- Replace Beneficiaries: If a beneficiary predeceases you, you may want to allocate their share of your estate to another individual, such as another family member or charity.
- Appoint a New Executor: If your chosen executor passes away or is no longer able to fulfill their duties, appointing a new executor ensures your estate is managed as you intended.
We understand how difficult it can be to lose a loved one, and updating your will after such an event helps prevent potential legal challenges and ensures your wishes are respected.
4. Significant Changes in Financial Situation
Major changes in your financial situation—whether a windfall like an inheritance or a financial setback like bankruptcy—should prompt you to review and update your will. It’s essential that your will reflects your current assets and how they should be distributed.
For instance, if you’ve acquired valuable assets such as real estate or investments, you should ensure your will specifies how these assets will be distributed to avoid any confusion or disputes. Conversely, if your financial situation has changed drastically, you may need to adjust the amounts or proportions left to beneficiaries.
In New Jersey, changes in your financial situation can also affect inheritance tax obligations, particularly if you leave assets to non-lineal heirs, which should be carefully considered in your estate plan.
5. Changes in Tax Laws
Tax laws are subject to change, and some of these changes can have a direct impact on your estate plan. For example, while New Jersey repealed its estate tax in 2018, the state still imposes an inheritance tax under N.J.S.A. 54:34-1, which applies to beneficiaries who are not direct descendants, such as friends or distant relatives. Beneficiaries classified as Class A (spouses, children, parents) are exempt, while Class C and Class D beneficiaries may be subject to tax liabilities.
When significant tax law changes occur, it’s important to consult an estate planning attorney at Ritigstein Law. We can help you adjust your estate plan to minimize tax burdens on your heirs and ensure compliance with the latest regulations.
6. Relocation to a Different State or Country
If you’ve moved to a different state or country, updating your will is essential to comply with local laws. New Jersey has specific probate and inheritance rules that may differ from those in other states or countries. Moving to a new jurisdiction may mean that some provisions in your existing will are no longer enforceable.
By updating your will after relocating, you can ensure that your estate plan remains valid and enforceable according to your new location’s laws.
7. Establishing or Dissolving a Business
Starting or dissolving a business is a significant event that warrants a review of your estate plan. Business assets can represent a substantial portion of your estate, and failing to include them in your will can lead to disputes among your heirs.
In New Jersey, including a business succession plan in your will is critical. This plan can help ensure your company continues to operate smoothly or is sold according to your wishes, preventing legal challenges among family members or business partners.
8. Changes in Relationships with Beneficiaries
Over time, your relationships with beneficiaries may change. Whether you’ve reconciled with someone previously excluded from your will or had a falling out with a named beneficiary, updating your estate plan ensures it reflects your current wishes.
Regularly reviewing your will helps you ensure that the people you trust and care about are provided for as you intended in the event of your passing.
9. Health Changes or a Diagnosis of a Serious Illness
Facing a serious illness or health decline is challenging, but it’s also an important time to revisit your estate plan. In New Jersey, healthcare proxies and advance directives are critical estate planning tools that outline your medical and financial wishes should you become incapacitated.
Making these updates while you are still capable of doing so ensures that your healthcare and financial wishes will be clearly outlined, even if you’re unable to communicate them in the future.
10. Periodic Review
Even if none of the above life events have occurred, it’s still a good idea to periodically review your will and estate plan—ideally every three to five years. Doing so ensures that your plan remains up to date and accurately reflects your current financial situation, relationships, and goals, while also complying with the latest New Jersey laws.
Ensure Your Estate Plan Reflects Life’s Changes
Keeping your will up to date ensures that your assets are distributed according to your wishes and that your loved ones are cared for. Life events can bring unexpected changes, so it’s essential to regularly review your estate plan. At Ritigstein Law, we’re here to help you navigate these changes and ensure your plan evolves with you.
Update Your Will and Protect Your Legacy with Ritigstein Law
At Ritigstein Law, we specialize in providing personalized estate planning services to clients across New Jersey, including Haddonfield, Cherry Hill, Voorhees, and beyond. Whether you’re looking to update your will, establish a trust, or navigate probate, our experienced attorneys are here to guide you through every step. Protect your loved ones and your legacy by ensuring your estate plan is up to date and compliant with New Jersey laws.
Don’t wait until life’s changes become legal complications. Contact Ritigstein Law today to ensure your will is up-to-date.
Disclaimer: The information provided is not legal advice and does not establish an attorney-client relationship.
