For many people, once they finalize their estate plan, they figure they’re all set. Unfortunately, this is not the case. Things can change quickly in both your personal and financial life, and unless you regularly update your documents, you risk having your hard-earned assets go to someone you didn’t intend. Meeting regularly with an experienced estate planning lawyer can help ensure this doesn’t happen.
When to Update Your Estate Plan
Whether it’s a new child or grandchild being born, a change in your relationship with a friend or relative, or a teenage child coming of age, your life is full of major changes that can affect your estate plan. In addition, your financial situation might change, which could impact how you want your estate administered. When one of these events occurs, it’s a good idea to review your documents and make sure your intended beneficiaries are still accurately reflected.
The Twelve Reasons You May Need to Update Your Estate Plan
To help guide your planning, here are twelve common reasons it may be time to update your estate plan:
-
- You get married. In this case, your spouse will likely become a central part of your estate plan.
- You get divorced. You may no longer want your ex-spouse to have legal or financial authority.
- You have or adopt a child. You’ll want to ensure your children are protected and provided for.
- The death of a beneficiary, executor, or named guardian. A key individual in your plan is no longer available.
- You’ve had a falling out with someone named in your estate plan. Relationships change, and so should your plan.
- Your wealth increases significantly. A larger estate may require new strategies for protection and tax efficiency.
- Your wealth is significantly reduced. Your plan should reflect your current financial situation.
- You move to a new state. Estate laws vary, and your documents may need to be updated for compliance.
- You start or sell a business. Business interests require special planning to pass on properly.
- A child turns 18. They are legally an adult, which may affect guardianship or inheritance plans.
- Changes in federal or state tax law. New laws can affect estate taxes, retirement accounts, and more.
- You change your definition of what you want your legacy to be. As your values evolve, so might your estate goals.
Properly Funding Your Estate
One mistake many people make is setting up a trust but failing to transfer their assets into it. If this step is missed, those assets may go through probate rather than directly to your intended beneficiaries. Regular estate plan reviews can help ensure your trust is properly funded.
Changes in Laws
Recent legislation like the Secure 2.0 Act of 2022 introduced major changes to how retirement accounts are treated in estate plans. Additionally, updates to laws such as the Spousal Elective Share Law can affect your estate’s administration. Because laws are constantly evolving, it’s crucial to meet with your estate planning attorney regularly to stay compliant and protected.
Stay Ahead with Deliberato’s Maintenance Plan
To help you keep your estate plan current and effective, Deliberato Law offers a comprehensive Estate Planning Maintenance Program. This service includes regular reviews, updates, and access to expert guidance as laws, and your personal circumstances change. It’s peace of mind knowing your plan will work exactly as intended; when you and your loved ones need it most.
You can learn more about our maintenance program here: https://icanprotect.com/estate-planning-maintenance-program/.
