Knowing When to Update Your Estate Plan

The idea of creating an estate plan can feel like a cumbersome process. It’s something that will likely be weighing on you until you put forth the time and effort with an estate planning lawyer to complete the process. Because people’s lives are constantly influx, estate planning is not a one time document. It’s not something that you have the ability to create and leave until the time comes for it to take effect. Despite taking the time to develop your estate plan, it can all go to waste in the event that you have not taken the time to update it with any life changes that come your way. There are a number of situations that may warrant updating your estate plan, or revising it altogether, including:

Out of State Moves

If you have moved out of state, there’s a chance that the tax laws may be different. Although a move can be incredibly time consuming, updating your estate plan once you have moved can help to ensure that your estate plan is valid and in accordance with state laws. 

Marriage

If you are recently married, you will want to update your estate plan to include your new partner. This can help to ensure that your spouse is protected in the event of your passing. 

Divorce

If your marriage has ended, you surely will want to update your estate plan for a number of reasons. It’s likely that you will not want your ex spouse to inherit all of your assets in the event that your estate plan was prepared jointly. Much of the time, each spouse may identify their partner in advanced medical directives and as power of attorney. The last thing you may want is for your ex to be left to make decisions over your healthcare and finances in the event you become incapacitated and are no longer able to make decisions for yourself. 

Children

The birth or adoption of children should always trigger an updated estate plan. If you have young children, it’s important that your estate plan includes a plan for their care, such as an appointed guardian and a plan for how assets will be inherited. Additionally, the birth of grandchildren may also warrant updating your estate plan to include them.

Your Assets Change

Over time, your wealth may change. As you age, you may incur more significant assets. Whether you have recently acquired more property, or inherited a sum of money, it may be a good idea to update your estate plan to reflect these changes. 

Updating Your Plan is Painless

It’s important that you review and update your estate plan at least every 3-5 years. Working with an attorney throughout this process is a savvy business decision, in the long run, they may even be able to save you money. When it’s time to update your plan, here are some important steps to take:

1. Obtain a copy of your estate plan
2. Review it and make a note of any changes that will need to be made
3. Allow for an estate planning lawyer to make the necessary updates

Too hard to remember? In some cases you may even be able to have an estate planning lawyer manage your estate plan. They will prompt you to update your will when necessary. 

Although updating your estate plan may not be at the forefront of your mind, failing to do so can result in you assets ending up in the wrong hands. The last thing you want is for your outdated estate plan to cause problems within your family. You have already gone through the process of putting together your estate plan, don’t let it go to waste by neglecting to update it. Contact an estate planning lawyer in Roseville, CA so that they can help guide you in updating your plan.

Thanks to the Yee Law Group for their insight into estate planning and knowing when to update your estate plan.