Estate planning is an essential consideration for older people. A sound estate plan can benefit you and your family in many ways. However, creating an estate plan is not something you do just once. You may need to update your estate plan for many reasons. This post will explore common reasons for updating your estate plan.
Reasons to Update Your Estate Plan
Changes in Personal Assets
Your financial situation is likely to change over the years. If you don’t update your estate plan, it might not cover all your assets and liabilities. Acquiring new assets, like real estate or an inheritance, may require updates to your estate plan. Similarly, selling assets will affect your estate plan. Taking on new debt or paying off old ones may also require adjustments.
Beneficiaries and Trustees
Life and relationship changes can affect who you want to designate as beneficiaries and trustees in your estate plan. Regularly reviewing these designations ensures that your assets will go to the right people. You should update beneficiaries on insurance policies, retirement accounts, and payable-on-death accounts to reflect relationship changes. Trustees responsible for managing your estate may need to be changed if they can no longer fulfill their duties.
Changing Family Dynamics
Families change over time. Maybe you have a new child or grandchild. The death of a family member might require changes to your estate plan. Marriages and divorces also require updates to reflect new spouses or remove ex-partners from the plan. It is also possible that you’ve become estranged from a once close family member. Accounting for these changes can prevent conflict and ensure asset distribution reflects your current family life.
Technology Considerations
Technology can significantly impact your finances and estate plan. For example, you might own a website, social media accounts, or cryptocurrency. These assets have value, but a standard estate plan might not adequately address them. That is where digital asset estate planning can be valuable. A digital estate plan can ensure these assets’ proper handling and distribution.
Moving Across State Lines
Many seniors relocate when they retire. While your will should hold up across state lines, some documents may need updates. Documents like powers of attorney and healthcare surrogacy may be subject to different rules. Additionally, some states have varying laws regarding estate taxes, spousal rights, and property distribution.
Regularly reviewing your estate plan is the key to ensuring it is up-to-date and appropriate for your current circumstances. You should review about every 3-5 years. Major life events, asset changes, and family dynamic shifts should also trigger a review. Consulting with an attorney can provide the necessary advice while ensuring all documents are accurate and legally sound.
Do you or a senior loved one need help with estate planning? Click here to contact the Scott Law Offices. We are elder law experts and can help with wills, trusts, powers of attorney, and more. Reach out now to learn more about our estate planning services.
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