In a recent article on Forbes.com, the author lists a number of events that should trigger a review of an individual or family?s estate plan.? The items listed by the author are as follows:? Getting married, divorce or death of a spouse, purchasing or refinancing a home, new accounts, or children changes.? While I agree that these items would require a review of an estate plan, it may be more complex than the author suggests.
On the issue of death or divorce of? a spouse, he simply states that a change in marriage status could necessitate a changes to the estate plan.? However, in the case of an husband and wife with a living trust (revocable trust), upon the dissolution of the marriage the trust is revoked.? Further, most Powers of Attorney (form healthcare or financial decisions) are revoked when the spouses divorce automatically.? It is more than just a review of the estate plan ? for all intents and purposes the estate plan has been gutted by the operation of law and the change in marital status.? When a spouse dies with a living trust, some changes cannot be made ? they become irrevocable.? Therefore, the surviving spouse would have to make changes as far trustees, POA?s etc, however some items are set in stone per the trust document.? Therefore, it is far too simplistic to say that upon the death of spouse that a person should review their estate plan ? a portion of the estate plan has taken effect.? That requires that couples with a revocable trust, must constantly think about changes to beneficiaries, and other provisions because once of the settlors dies, certain aspects cannot be changed.
Source: http://williamrbailey.com/2012/08/what-changes-necessitate-an-estate-plan-review
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