You created an estate plan to protect your loved ones, but life doesn’t stand still. The will you made years ago might not reflect your current wishes. Regularly reviewing and updating your will and other documents is crucial for handling your legacy exactly as you intended.
Estate planning professionals suggest a review every three to five years to account for new life events and legal changes. This simple step can make a huge difference for your family’s future. Here are five reasons that changes are necessary.
When life takes a turn
Life circumstances change. Your children may now be grown. You might have remarried and gained stepchildren, or you may be divorced. Each event can change who you want as a beneficiary. Updating your will can include adding new family members, removing former ones or even changing your name on legal documents.
Helping heirs with issues
If you’re concerned that a loved one might struggle with a large inheritance due to substance abuse or financial instability, a trust can help. You can set conditions for distributing assets. For instance, a beneficiary might receive funds only after graduating from college or getting a steady job. This gives you control over your legacy and ensures your loved ones are cared for responsibly.
The people you chose to trust
The people you named initially in your will might not be the best choices anymore. The person you chose as your children’s guardian may no longer be a good fit. The friend or relative named as your executor or health care proxy may have health issues or have moved away. It’s smart to re-evaluate these choices and consider if someone is better suited to make critical decisions for you.
Getting inheritances to heirs faster
The probate process can take months or years, delaying your loved ones’ access to their inheritance. You can take steps to help them get their inheritance more quickly. For example, creating trusts distributes assets outside of your will. Life insurance and retirement accounts also allow you to name beneficiaries who receive funds immediately. Jointly owned property often passes directly to the surviving owner.
New tax laws and your estate
Estate and tax laws can change, impacting how your assets are handled. The federal estate tax exemption, for example, is set to change. Some states, like Texas, do not have an estate tax, but others do. Staying informed about these changes is crucial, especially if you own property in different states.
Consulting with a skilled estate planning lawyer ensures your plan remains current and effective, giving you peace of mind.
