How to Update Your Estate Plan After a Major Life Change in Missouri

How to Update Your Estate Plan After a Major Life Change in Missouri

Creating an estate plan is a huge accomplishment. But it's not a "set it and forget it" kind of thing. Life changes, and your estate plan needs to change with it. A plan that was perfect five years ago might be completely wrong for your situation today.

At The Taormina Firm, we regularly help Missouri families review and update their estate plans after major life events. Whether you're in Kirkwood or Chesterfield, Webster Groves or O'Fallon, keeping your plan current is one of the most important things you can do for your family.

When Should You Review Your Estate Plan?

As a general rule, you should review your estate plan every three to five years, even if nothing major has changed. Laws change, your financial situation evolves, and the people in your life may take on different roles. But certain life events should trigger an immediate review.

Marriage

Getting married changes your legal relationships in significant ways. Under Missouri law, your spouse has certain statutory rights to your estate, including an elective share right under Section 474.160, which generally entitles them to a portion of your estate regardless of what your will says. After marriage, you should update your will and trust to include your new spouse, review and update beneficiary designations on life insurance, retirement accounts, and bank accounts, consider whether you need a joint trust or coordinated individual trusts, and update your power of attorney and health care directive.

Divorce

Divorce is one of the most critical times to update your estate plan. Under Missouri law, a divorce automatically revokes certain provisions in your will that benefit your ex-spouse, per Section 474.420. However, this automatic revocation does not apply to beneficiary designations on life insurance policies, retirement accounts, or trusts. If your ex-spouse is still named as a beneficiary on your 401(k), they'll receive those funds unless you actively change the designation. After a divorce, you should revise your will and trust documents entirely, update every beneficiary designation, change your power of attorney and health care directive agents, and review any joint ownership arrangements.

Birth or Adoption of a Child

A new child changes everything. As we discussed in our post on estate planning for families with minor children, you need to name a guardian, consider setting up a trust for their inheritance, and ensure your life insurance coverage is adequate. If you already have an estate plan, make sure it's updated to include your new child and that your inheritance distribution reflects your current wishes.

Death of a Spouse or Beneficiary

Losing a loved one is devastating, and updating legal documents is usually the last thing on your mind. But it's important to address your estate plan after such a loss. If the person who passed away was named as your executor, trustee, power of attorney agent, or health care proxy, you need to designate a new person for those roles. If they were a beneficiary, you may need to revise how your assets are distributed.

Significant Change in Financial Situation

A major increase or decrease in your wealth should prompt a review. If you've received a large inheritance, sold a business, retired, or experienced a financial setback, your estate plan should reflect your new reality. This is especially true when it comes to estate tax planning. Families in communities like Clayton, Des Peres, and Wildwood who have experienced significant wealth growth may need more sophisticated planning tools like irrevocable trusts or gifting strategies.

Moving to or from Missouri

If you've recently moved to Missouri from another state, your existing estate plan may not comply with Missouri law. While Missouri generally recognizes out-of-state documents, there can be issues with specific requirements for witnesses, notarization, or trust administration. Having a Missouri attorney review your plan ensures everything is in order.

Changes in the Law

Tax laws and estate planning laws change regularly. The federal estate tax exemption, for example, is scheduled for a significant reduction. State laws regarding trusts, powers of attorney, and probate procedures also evolve. Working with an attorney who stays current on these changes ensures your plan remains effective.

What Does an Estate Plan Update Involve?

Depending on the changes needed, updating your estate plan might involve creating a trust amendment or restatement, executing a new will, signing new power of attorney and health care directive documents, updating beneficiary designations across all accounts, and retitling assets if needed. Some changes are simple and can be handled through amendments. Others require creating entirely new documents. Your attorney will advise you on the best approach.

Keep Your Plan Working for You

Your estate plan is only as good as it is current. If you've experienced a major life change and haven't reviewed your documents, now is the time. Contact The Taormina Firm for a review. Whether you're in Ballwin, University City, Florissant, or anywhere in the St. Louis area, we'll make sure your plan still reflects your wishes and protects the people you love.