If you currently have an estate plan established, you are off on the right foot. However, keeping your plan current and accurate is essential. Every three to five years, or upon significant life change, you should meet with your estate planning attorney to review and discuss potential revisions. Reviews also give your attorney an opportunity to review your documents for any changes in the law that may have occurred. Listed below are some common reasons to make updates to your estate plan.
If you have moved states
Estate planning laws vary from state to state. In many, for example, it is required that a spouse inherits a minimum portion of the estate. There may or may not also be an estate or inheritance tax. Aspects of the estate plan including the power of attorney, living wills, and so forth are dependent on state law.
Changing objects of affection
Changing objects of affection typically occurs when there is a new addition to the family or the removal of a family member upon death or divorce. There may also be instances when you wish to disinherit someone who has become estranged or irresponsible.
Your liabilities or assets change
If the value of the estate has increased or decreased since the original plan was drafted, you may want to check in with your estate planner to change how the property is divided. If you have changed the composition of your estate, through the purchase, exchange, or sale of a valuable asset; a review may be needed.
Your retirement plan is outdated
Failing to update the beneficiary designations of retirement plans including IRAs and 401k(s) is one of the larger mistakes made in estate planning. Designations of the beneficiaries include who receives life insurance, assets, annuities, and financial accounts.
Altering executors or trustees
With your estate plan changing, there may be a better choice of an executor or trustee. This could also happen upon the aging, moving, or death of your current executor or trustee. It is vital to know that the people appointed in your plan are still willing and able to carry out these tasks as you’d like.
Your life might not be the same as it was when you created your original estate plan, and your estate plan should reflect that. Circumstances can change and the best thing you can do is stay on the right foot for whatever life brings your way. Tresp Law, APC can assist in all types of estate plan creation and revision for all the updates in your life. Call Tresp Law, APC today at (858) 248-2779 or click below to schedule a consultation.
