Starting a new job is an exciting milestone that can bring fresh opportunities, challenges, and goals. Whether it’s a higher salary, better benefits, or a change in location, this shift can significantly impact your financial and personal life. It’s also a chance to reflect on your long-term priorities and ensure you’re on the right path to protect what matters most. Taking a moment to evaluate where you stand can help you approach this new chapter with confidence and clarity.
New Income, New Goals
A new job often comes with a higher salary or additional benefits, both of which can change your financial picture. With increased income, you may have new goals, like saving for a home, paying down debt, or building a robust investment portfolio. Updating your estate plan ensures your assets are protected and distributed in a way that reflects these priorities.
For instance, if you’re earning more, you might want to revisit how much you’ve set aside for your children’s education or allocate funds for charitable giving. Beneficiary designations on accounts like 401(k)s or life insurance policies should also match your current goals. Without an update, your assets may not go to the right people or causes.
We recommend taking a close look at your estate plan whenever there’s a significant change in income. This simple step helps ensure your future aligns with your current aspirations.
Employer Benefits and Estate Planning
Starting a new job often means gaining access to employer benefits like life insurance, retirement accounts, or stock options. These benefits can significantly impact your estate plan, ensuring your assets are managed and distributed according to your wishes.
Here are a few ways employer benefits can integrate with your estate planning strategy:
- Life Insurance: Update beneficiary designations to reflect your current priorities. Outdated beneficiaries could cause your benefits to go to unintended recipients.
- Retirement Accounts: Accounts like 401(k)s or pensions should align with your broader estate plan. Review who will inherit these funds and make adjustments if necessary.
- Stock Options or Equity Plans: These assets can add substantial value to your estate. Including them in your plan ensures they are passed on efficiently.
- Health Savings Accounts (HSAs): These accounts can hold unused funds. Assigning beneficiaries allows them to make the most of this resource.
Relocation and Its Impact
If your new job involves relocating, it’s important to consider how moving to a different state might affect your estate plan. State laws govern critical aspects of wills, trusts, and powers of attorney, and a plan that’s valid in one state may not meet the legal requirements in another. Updating your estate plan after a move ensures it complies with local laws and remains effective.
Protecting Your Loved Ones
Reviewing your estate plan when starting a new job is one of the best ways to ensure your loved ones are protected. Life changes—like a new job, a growing family, or shifting priorities—can make certain aspects of your plan outdated.
For parents, revisiting guardianship designations for minor children is particularly important. If your new role involves more travel or relocating, you may want to update who you’ve chosen to care for your children in your absence. Similarly, financial powers of attorney and health care directives should reflect the individuals you trust most to make decisions if needed.
Contact Our Experienced Orange County Estate Planning Attorneys
Starting a new job is a time of growth and change, making it the perfect opportunity to revisit your estate plan. Don’t let outdated plans create unnecessary challenges down the road. Contact OC Wills & Trust Attorneys today to schedule a consultation. Together, we’ll ensure your estate plan evolves with you, reflecting the exciting new chapter you’re starting.
