Estate plans go stale quickly. A document you signed years ago may no longer reflect your family, your assets or New Jersey law.
Life events that require an immediate update
Certain changes can’t wait for a routine review. Act as soon as possible after any of these:
- Marriage or remarriage: Your new spouse gains legal rights to your estate. Your documents must reflect that.
- Divorce or separation: New Jersey’s Divorce Statute, N.J.S.A. 3B:3-14, automatically revokes will provisions favoring a former spouse. It does not update life insurance or retirement account beneficiary designations. You must change those manually.
- Birth or adoption: You need to name a guardian for any minor child. You may also want to set up a trust to control when and how they receive assets.
- Death or incapacity of a named fiduciary: If your executor, trustee or agent under a power of attorney can no longer serve, you need a replacement.
- Major financial change: Buying property, selling a business or receiving an inheritance should all prompt a review.
Each of these situations can affect who receives your assets and who makes decisions on your behalf.
Why you should review your plan every three to five years
Even without a major life event, your plan can drift out of alignment. Tax laws change. Your priorities shift. People named in your documents may move, age or become unavailable. During a routine review, check the following:
- Do your beneficiary designations on retirement accounts and life insurance still match your wishes?
- Are all named executors, trustees and agents still willing and able to serve?
- Does your plan account for all current assets and liabilities?
A beneficiary designation on a financial account overrides your will. Keeping those designations current may matter as much as the will itself.
Speak with an estate planning attorney before making changes
New Jersey requires specific formalities for valid estate planning documents. An attorney can help you understand your options and ensure any updates meet those requirements.