Revisiting Your Estate Plan Following the Loss of Your Spouse

Few things in life are more painful than the loss of a spouse. It can be difficult to focus on practical matters as you mourn. Unfortunately, the sudden change in your life circumstances makes it more important than ever to review your estate plan and make updates, as necessary.

Why Estate Plans Need Updating After the Loss of a Spouse

There’s no more pressing time to revisit an estate plan than after a spouse’s death. Losing a partner often results in asset transfers that can alter the structure of the surviving spouse’s estate. Making changes to the estate plan can ensure it reflects the current financial and family dynamics. Failing to update an estate plan under these circumstances may lead to unwanted consequences later on, such as the distribution of assets to unintended beneficiaries or legal disputes among family members. Reviewing the estate plan also provides an opportunity to address the surviving spouse’s financial goals and any tax implications.

Key Areas to Review After Spousal Death

There are many potential areas of your estate plan where adjustments might be worthwhile after your spouse dies, such as:

• Wills and trusts – Review these documents to adjust any directives or distributions that were effective during your spouse’s lifetime. For instance, you may need to appoint a new personal representative (executor) or trustee if your spouse was originally designated in those roles.
• Beneficiary designations – Spouses are often the primary beneficiaries of retirement accounts, life insurance policies, and other financial accounts. You may want to name a new beneficiary in place of your spouse.
• Power of attorney – If your spouse held the power of attorney to manage your affairs if you became incapacitated, it’s crucial to appoint a new person to serve in this role.
• Guardianship provisions – If you have minor children or dependents, reviewing and possibly revising guardianship provisions is crucial. This might mean choosing a new guardian if your spouse was initially supposed to take on this responsibility.

Addressing Financial and Tax Considerations

The death of a spouse can significantly alter your tax situation. For instance, your filing status will change from married filing jointly to single or head of household, which may affect tax rates and deductions. It’s also important to assess any potential estate or inheritance taxes that might apply if your spouse’s assets are transferred.

You may also need to consider your financial strategy more broadly to ensure its long-term stability. This might involve re-examining your retirement and investment goals, insurance designations, and how you budget your monthly income. An estate planning attorney can advise you on strategies to best serve your short- and long-term goals.

Ensuring Clear Communication with Family

You may want to involve family members about the changes to your estate plan. Communication is vital to ensure that everyone knows your wishes. You also don’t want to appoint people to serve in roles if they don’t feel comfortable or prepared to take on those jobs. A lawyer can help facilitate these sensitive discussions, so your intentions are clear.

How an Estate Planning Attorney Can Help After the Death of a Spouse

Adjusting to life without your partner is a transition filled with heartache. While your friends and family can support your emotional needs, an experienced estate planning lawyer can protect your future by addressing any new legal matters arising from your loss. Whether you need to update existing estate planning documents or draft new instruments to reflect your changing needs, the legal team at Brown & Hobkirk, PLLC is ready to support you. Contact us today for a free consultation* with an Arizona estate planning attorney.