Happy Wednesday! We hope everybody had a Happy Thanksgiving! As people visited with their families this week, I'm sure there was quite a bit of reminiscing. Times change and with that so does the family. Routinely, we are asked how often an estate plan should be updated. Typically, 3-5 years tends to keep you up to date with family dynamics as well as legal and tax changes. However, there are some events that trigger a review even earlier.
Here are the six life events that trigger an estate plan review:
Death: Reviewing your estate plan is always necessary upon the death of a family member, especially the death of a spouse. This also applies to the death of any beneficiary or anybody that you may have named as a Trustee, Personal Representative, Guardian, or other fiduciary.
Birth: Although most plans will allow you to incorporate future born or adopted children, it is always best to incorporate any new child by name.
Marriage: Your own marriage certainly warrants an estate plan update, however, the marriage of any beneficiary is especially important. You'll want to be sure that your plan provides for exactly whom you wish and that your beneficiary doesn't end up unintentionally splitting any inheritance that you've left for them.
Divorce: Once your divorce is finalized you will want to be sure that you update all of your beneficiary and fiduciary information. It's imperative to select new people to fulfill various roles and responsibilities in your estate plan and you do not want to unintentionally leave behind money to an ex-spouse.
Moving: Estate planning is based upon state law. Therefore, you're going to want to speak with an estate planning attorney in any new state that you move to so that your plan meets your new state's statutory requirements.
Assets: Any type of new asset acquisition - substantial pay increase, inheritance, or settlement will always trigger a need to update your financial as well as legal plan.
Your estate plan is a living breathing document that is supposed to change along with your family. Do not think that you can simply place your estate plan in a drawer and never look at it again. If it has been some time since your last estate planning review please be sure to contact us. We'll make sure that your plan is the right fit for you.