Creating an estate plan is one of the most important steps you can take to protect your loved ones and ensure your wishes are honored. But did you know that estate planning isn’t a one-and-done process? Life changes, and your estate plan should evolve with it.
In Massachusetts, where laws like the Massachusetts Uniform Probate Code (MUPC) and federal estate tax rules can influence your plan, regular updates are critical. Below, we’ll explore key life events and legal changes that signal it’s time to review your estate plan.
Major Life Events That Require an Update
- Marriage or Divorce
When you get married, your spouse becomes a central part of your life—and your estate plan. You’ll likely want to update your will, trust, and beneficiary designations to include your spouse.
Conversely, divorce is a crucial trigger for an estate plan review. Massachusetts law automatically revokes provisions for an ex-spouse in wills and trusts, but this doesn’t apply to other documents like retirement account beneficiary designations. Ensure your ex-spouse isn’t unintentionally listed on life insurance policies or retirement accounts.
- Having or Adopting Children
Welcoming a child into your family is a joyous occasion, but it also brings responsibility. Parents should update their estate plans to name guardians for minor children and ensure financial provisions through a trust.
Massachusetts courts prioritize the best interests of the child in guardianship decisions, but clearly naming a guardian in your estate plan prevents potential disputes.
- Death of a Beneficiary or Fiduciary
If someone named in your estate plan—such as a beneficiary, trustee, or executor—passes away, you’ll need to make changes to reflect your current wishes. Massachusetts law may not automatically adjust these roles, so proactive updates are essential.
Financial Changes That Necessitate Updates
- Buying or Selling a Home
Real estate often represents a significant part of your estate. If you purchase or sell property, particularly in Massachusetts where homestead declarations offer protection, you should update your estate plan to reflect these assets. Ensure your property is correctly titled and included in your trust if applicable. - Inheritance or Sudden Wealth
Receiving an inheritance or other financial windfall can shift your estate planning needs. You might need strategies to minimize Massachusetts estate taxes or protect your assets through trusts. - Changes in Business Ownership
If you own a business, transitioning ownership or selling it can have major tax and legal implications. Update your plan to ensure proper succession or to allocate proceeds from a sale.
Adjustments for Changing Laws
Massachusetts estate laws, such as the MUPC and the Massachusetts Uniform Trust Code, are subject to change, and federal laws governing estate and gift taxes also evolve. Regularly reviewing your estate plan with a Massachusetts attorney ensures compliance with the latest legal requirements.
For example, in 2025, the federal estate tax exemption is $13.99 million, but this amount is scheduled to revert to approximately $7 million in 2026. Check out this article for more information. If your estate could exceed this threshold, advanced planning techniques, like irrevocable trusts, may be needed to reduce tax liability.
Family Dynamics and Relationship Changes
- Estranged Relationships
Family dynamics can change over time. If a relationship becomes strained, you may want to adjust who receives assets or serves in fiduciary roles. - Blended Families
For blended families, estate plans should reflect agreements on how assets will be divided among children, stepchildren, and spouses. Trusts are often used to balance these complex dynamics.
Regular Reviews: Every 3 to 5 Years
Even if no major life event occurs, it’s wise to review your estate plan every three to five years. This ensures your documents remain effective, accurately reflect your wishes, and account for any changes in Massachusetts law.
Massachusetts-Specific Considerations
- Probate Avoidance: Massachusetts probate can be time-consuming and expensive. Ensuring your assets are titled correctly or held in a trust can help your family avoid this process.
- Homestead Declarations: Massachusetts allows homeowners to file a homestead declaration to protect equity in their home from creditors. Include this in your plan if applicable.
- Special Needs Trusts: If you have a disabled beneficiary, Massachusetts laws provide for special needs trusts to protect their eligibility for government benefits.
Don’t Wait—Take Action Today
Life changes quickly, and failing to update your estate plan can lead to unintended consequences. Whether you’ve experienced a major life event, financial change, or just want to ensure compliance with the latest Massachusetts laws, now is the time to act.
At Cote Law Group, we specialize in tailoring estate plans to meet your unique needs. Contact us today to schedule a consultation and keep your plan up to date.
