Why Should You Update Your Estate Plan After Major Life Events?

Life changes quickly. One moment you’re celebrating a wedding, welcoming a new child, or accepting a job promotion, and the next you’re wondering if your legal documents still reflect your current situation. Many North Carolina residents create an estate plan and then file it away, assuming their work is done. However, an outdated estate plan can create serious complications for your loved ones when they need clarity most.

At Schulz Stephenson Law, we work with families throughout Carteret, Craven, and Pamlico Counties to ensure their estate plans grow and adapt alongside their lives. Understanding when and why to update your will and other planning documents can protect your family and honor your wishes for years to come.

What Life Events Should Trigger an Estate Plan Review?

Certain milestones fundamentally change your relationships, assets, and priorities. Recognizing these moments helps you keep your estate plan aligned with your current circumstances.

Marriage or Remarriage

When you marry or remarry, your spouse typically gains certain legal rights under North Carolina law. If your will predates your marriage, it will probably not reflect your intentions about providing for your new spouse. You will want to review beneficiary designations on life insurance policies, retirement accounts, and other assets. Many people also choose to update their healthcare power of attorney and financial power of attorney to include their spouse.

Remarriage brings additional considerations, especially if you or your spouse have children from previous relationships. You may want to ensure that both your new spouse and your children are provided for according to your wishes.

Birth or Adoption of Children

Welcoming a child into your family requires immediate attention to your estate plan. You will need to consider potential guardians who would care for your minor children if something happens to you. Without this designation in your will, a court would decide who raises your children, and that decision may not align with your preferences, as you did not address it in your will.

You should also consider how you want to provide for your children financially. This includes naming them as beneficiaries and determining how and when they should receive their inheritance.

Divorce or Legal Separation

After a divorce, your ex-spouse may still be named in your will, listed as a beneficiary on your accounts, or designated as your healthcare decision-maker. These documents need to be updated. Life insurance policies, retirement accounts, and payable-on-death accounts often require manual updates.

A divorce does not automatically update estate planning documents. Review every component of your estate plan and make necessary changes promptly.

Death of a Beneficiary or Executor

If someone you named in your will passes away, you will need to designate other beneficiaries. This recommendation applies to beneficiaries, executors, guardians for minor children, and anyone holding a power of attorney role. An estate plan that names someone who is no longer living can create confusion and delays during an already difficult time.

Significant Changes in Financial Circumstances

Major financial shifts require estate plan adjustments. This includes receiving an inheritance, selling a business, buying significant property, or experiencing substantial investment gains or losses. Your current plan may not address new assets, or may distribute them in ways that will not further your goals.

Similarly, if you experience financial hardship, you may want to adjust your plan to reflect your changed circumstances, and ensure that your limited resources are distributed according to your priorities.

Relocation to a Different State

While North Carolina will generally recognize a valid will from another state, provided that it was properly executed in that state, different states have varying laws regarding estate planning, probate, and taxes. If you have recently moved to North Carolina from another state, or if you are planning to leave, having your estate plan reviewed ensures it complies with current state laws and takes advantage of any beneficial provisions.

How Often Should You Review Your Estate Plan Even Without Major Changes?

Even if you haven’t experienced any dramatic life events, reviewing your estate plan every three to five years is good practice. Laws change, relationships evolve in subtle ways, and your priorities may shift. A regular review ensures your plan remains current and effective.

During these reviews, verify that all named individuals are still appropriate choices, confirm that your asset distribution still reflects your wishes, and verify that your documents comply with current North Carolina law.

What Happens If You Don’t Update Your Outdated Estate Plan?

An outdated estate plan can create several problems. Your assets might go to unintended beneficiaries, such as an ex-spouse. The wrong person might make healthcare or financial decisions on your behalf. Your estate could face unnecessary expenses. Disputes among family members may arise when your documents don’t clearly reflect your current wishes.

Perhaps most troubling, a court may need to interpret unclear or outdated provisions, potentially resulting in outcomes never intended. Taking time to update your documents will help to prevent these scenarios.

How Can Schulz Stephenson Law Help You Keep Your Estate Plan Current?

At Schulz Stephenson Law, we understand that life in coastal North Carolina brings unique considerations for families in Beaufort, Morehead City, New Bern, and surrounding communities. We provide practical guidance on updating wills, powers of attorney, and healthcare directives to reflect your changing circumstances.

Our approach focuses on making estate planning accessible and understandable. We take time to explain your options, answer your questions, and ensure your documents accurately express your intentions. Whether you need to update an existing plan or create one from scratch, we’re here to help.

If you’ve experienced a major life change or simply haven’t reviewed your estate plan in several years, now is the time to take action. Contact Schulz Stephenson Law at our Beaufort office to schedule a consultation. Let us help you protect your family’s future and ensure your legacy reflects your true wishes.