Protecting Your Legacy

When is the right time to update an estate plan?

On Behalf of | Jul 19, 2024 | Estate Planning |

People tend to dislike contemplating unpleasant scenarios. It makes sense then that most people don’t like to think about what happens after they die. Many people put off estate planning until a personal experience forces them to prioritize the process. Many others plan hastily when they first need documents and then never revisit the process again.

An estate plan that consists of outdated documents may not hold up under scrutiny in probate court. People generally need to occasionally revisit and update their documents. When are estate planning reviews generally necessary?

When beneficiaries change

The pool of people who may inherit from an estate can change for many reasons. Perhaps the testator has new children or becomes a grandparent. Maybe tragedy strikes and they lose a family member. It is generally advisable to make prompt revisions to an estate plan anytime the pool of beneficiaries changes.

When resources change

The property that someone has in their twenties when they first become a parent is almost certain to change substantially by the time they reach retirement age. Any major adjustments to personal holdings may require estate planning revisions. People may need to remove assets that they no longer have and add instructions for new resources. Moving house or starting a business are both examples of scenarios where resources change enough to warrant estate planning updates.

When who someone can trust changes

Estate planning is as much about choosing people to hold positions of authority as it is about distributing property. A testator chooses a personal representative or trustee to manage their assets. They may also choose an agent or attorney-in-fact to handle their affairs should they become incapacitated. Perhaps they become estranged from someone over time. Maybe the health of a chosen agent changes and they are no longer capable of fulfilling their role. When a person someone previously trusted can no longer hold a position of trust and authority, estate planning updates are often necessary.

Reviewing documents after major life events is a smart decision. So is making a commitment to review documents every few years to correct for minor personal and familial changes. Maintaining an up-to-date estate plan is crucial for the protection of a testator. The choice to maintain updated documents can give someone more control over their legacy.

Categories

Archives