Updating Your Estate Plan in Minneapolis

You should promptly make plans to update your estate plan in Minneapolis when any of the following life events occur:

• The birth or adoption of a child or grandchild. You will likely want to name children and grandchildren as a beneficiary to some of your assets. You will also need to name a guardian for any minor children of your own in your will.
• Your child becomes a legal adult. When your child turns 18, you may wish to reconsider what types of assets you wish to leave to them. The legal mechanisms for leaving assets to minors versus legal adults can vary greatly.
• You marry, remarry, or divorce. When you marry, you will likely wish to list your spouse as a beneficiary and incorporate marital property into your estate planning documents. Divorce can have a tremendous impact on your assets and consequently estate plan. For example, Minnesota law automatically revokes any provision in a will that mentions your spouse.
• You reconsider your overall financial goals or experience a significant change in financial circumstances. As your financial situation evolves, so do your goals for managing and preserving it. “Significant” changes in financial circumstances might include buying or selling a home, gaining or losing a substantial stream of income, receiving a large inheritance, or starting or closing a business. Adjustments to your estate plan can help you account for new assets and objectives.
• You or your spouse become disabled or seriously ill. A serious injury or illness can be devastating, and you should take immediate steps to create contingencies should one or both of you become unable to communicate. This can include creating or modifying advanced healthcare directives and appointing powers of attorney.
• One or more beneficiaries passes away or leaves your life. If you no longer wish to leave property to one or more beneficiaries, you should ensure that they are removed from your will or trust. If a beneficiary passes, you should consider leaving the asset or assets intended for them to someone else.
• Your named guardian, power of attorney, healthcare representative, successor trustee, or personal representative passes away or experiences a change in circumstances. You select someone that you know and deeply trust when bestowing them estate planning-related responsibilities. Should one or more of these agents leave your life or pass away, you should immediately update your estate planning documents and name replacements.
• New federal or state laws alter rules for taxes, investments, and/or estate planning documents. Part of effective estate planning involves minimizing the impact of estate taxes and other rules governing financial transactions. Our firm monitors evolving legislation that can impact estate planning and can advise when changes to your plan may be necessary.

How Does Divorce Impact an Estate Plan in Minnesota?

Many understandably put their spouse at the center of their estate plans. Divorce is never easy, and no one plans for it. However, you will need to take swift steps to address your change in circumstances. Our team is familiar with the steps that need to be taken with your estate planning after a divorce and can help you avoid common errors and oversights.

Following a divorce, our experienced lawyers can help you:

• Revoke and replace your existing will. Minnesota law will automatically revoke any provision that mentions your spouse once your divorce has been finalized. You should still promptly revoke the entirety of your existing will and formalize a new one with updated beneficiaries.
• Evaluate impacts to your trusts. If you set up a trust before you were married and managed its contents independently from your spouse, it will likely be considered separate property and be spared from property division. Revocable trusts created with your partner or during the marriage will be subject to property division, so its role in your estate plan will almost certainly need reevaluation once the separation is finalized. Irrevocable trusts typically cannot be touched. This does mean that you will not be able to modify any terms that benefit your ex-spouse.
• Review and update life insurance policies and retirement accounts. In addition to updating your will and trust, you will also likely need to make changes to any life insurance policies or retirement accounts that name your spouse as a beneficiary. Some of these changes may be negotiated as part of your divorce proceedings, but you should double-check to ensure that they are removed from any and all additional accounts, including any documents addressing cabin planning.
• Name a new power of attorney. Many name their spouses as their power of attorney. In most circumstances, leaving these designations post-divorce is legal and enforceable, but you will likely wish to update the agents that will act on your behalf should you become incapacitated.

Committed To Keeping Your Estate Plan Current

If you are wondering if you may need to update your estate plan or have not done so for several years, you should consider taking the time to have legal professionals review your documents. Our experienced team of attorneys at Guttman Law can assist you with every facet of updating your estate plan in Minneapolis and can provide the professional and sophisticated guidance that you need to protect your legacy.

Get the peace of mind you deserve. Contact us online or call (612) 324-4055 today!