You’ve always been the responsible sort, so you got your estate plan together years ago – but is it still able to do the job you want it to do?
How long has it been since you’ve reviewed your estate plan? A few years may not seem like much, but a lot can change during that time. If it has been more than a year, get out your will and other documents and consider the following questions:
#1. Have there been any major changes in your life?
When big life changes happen, you shouldn’t wait to update an estate plan. Some of the most common “triggers” that signal the need for revisions include:
- Your own separation, divorce or remarriage and need to change your beneficiaries
- The birth of a child or grandchildren for whom you wish to provide
- Someone in your family becomes disabled and you want to provide for them
- You have had major additions to your resources or an overall change in your finances
- You have started a business and need to create a succession plan
It’s also important to remember that even just retiring and moving to a different state can trigger a need for a new estate plan, since each state has its own rules for what makes a plan valid.
#2. Have your relationships with your beneficiaries changed?
Whether you named family members, friends or charities as your primary beneficiaries, your relationships with those people or institutions may change over time. You may come to deeply appreciate the sacrifices a certain relative made to take care of you and wish to reward them – or you may have had a change of heart and no longer wish to support certain causes.
#3. Do you have the right executor and POAs in place?
If the executor you chose for your estate has moved away or fallen out of regular contact, it may be wise to appoint someone else to the job. Similarly, you want to consider whether you have granted the right people your powers of attorney to make medical and health care decisions on your behalf if you’re incapacitated.
Sometimes an estate plan can be easily amended, while other times it needs a complete overhaul. A careful exploration of the legal options available can help you decide how best to proceed.
