Top 10 Reasons to Update Your Estate Plan
By Sarah Duey, Attorney, Smith Pauley
“This is not what mom wanted.”
“If dad would have updated his will, this wouldn’t have happened.”
Unfortunately, I hear this too often and think of how the unintended can be avoided in most cases, at least when it comes to estate planning. A well-crafted, up-to-date estate plan ensures that your loved ones are taken care of, and that your assets are distributed according to your wishes.
Estate planning is not “one and done” because life changes and so do laws. You should plan the best you can for the “now” and evolve the plan alongside those changes. Here, I've compiled the top 10 reasons to update your estate plan, so you can safeguard your legacy and make informed decisions for your future.
Changes in Family Structure
Significant changes in your family, such as marriage, divorce, births, or deaths, may warrant an update to your estate plan. An outdated plan may no longer serve your family's best interests and could lead to unnecessary disputes and complications.
Moving to a Different State
Estate planning laws vary from state to state. If you move to a new state, it's crucial to consult with an estate planning attorney to ensure your documents will carry out your intentions in your new resident state.
Changes in Financial Situation
Whether you experience a significant increase or decrease in your net worth, your estate plan should reflect your current financial situation. As a result of a change in your financial situation, you might need to change how your assets are going to be distributed and to whom.
Changes in Tax Laws
Tax law changes may impact your estate plan. Regularly reviewing and updating your plan with the help of an estate planning attorney can help confirm that your plan is structured and will be administered in the most tax-efficient manner.
Aging Beneficiaries
As your beneficiaries grow older, their needs and circumstances may change. You might want to reconsider the timing of distributions or revise the terms of a trust to better suit the needs of your beneficiaries.
Aging Fiduciaries
The people you've appointed as personal representatives, agents, trustees, or guardians may no longer be the best choices as they age or experience changes in their own lives. Reviewing these appointments ensures that you have the most capable and trustworthy individuals in charge of your affairs.
Changes in Your Wishes
It's essential to periodically review your estate plan to ensure that it still reflects your values and desires. Perhaps you want to leave a charitable bequest and haven’t reflected that wish within your estate plan. Perhaps you have a special-needs grandchild, and you need to make certain your plan does not negatively impact any government benefits he/she is receiving.
Long-Term Care Planning
As you age, the potential need for long-term care becomes increasingly relevant. An updated estate plan can help you prepare for the implications for your assets and for your family.
Your Child is Going to College
Thinking about estate planning for yourself, let alone your child, is probably a low priority. I recommend you move this task to the top of your list because your adult child will need to appoint an agent for health care and finances to plan for the unlikely event you, the parent, would need to act on his or her behalf if he or she is unable to make decisions due to a health situation while at college.
It’s Been a While Since Your Last Review
When was the last time you looked at your estate plan? As a rule of thumb, it's wise to review the plan every three to five years, or sooner if you experience significant life changes. This ensures that your plan remains current and in line with your wishes.
If any of these top 10 reasons resonate with your situation, I am here to help. Contact Smith Pauley today at 402-392-0101.
Sarah Duey is an attorney with Smith Pauley representing clients with respect to estate planning, probate and trust administration, and charitable planning. Prior to joining Smith Pauley, she spent her formative years in trust administration for two Omaha-based banks. She also managed a trust services division at a national financial services firm. Sarah has earned the Chartered Advisor in Philanthropy (CAP®) designation from the American College of Financial Services, her Accredited Estate Planner (AEP®) designation from the National Association of Estate Planners and Councils, and is a Certified Trust and Fiduciary Advisor (CTFA) from the American Bankers Association.