A good estate plan should be written so that it will be effective long into the fault. While your estate plan may be legally enforceable for many years to come, the specific details within may need to be changed based on a number of factors in your life. This is why it is a good idea to review your estate plan at least once a year, and have it updated whenever there are significant changes to your situation. The following are five common reasons why you will need to have your estate plan updated.
Changes of Loved Ones
As time passes, your family and other loved ones are going to grow and change. If you have another child, for example, you will want to make sure they are properly included in your planning. The same may apply if you have another grandchild. If you or a child goes through a divorce, or a loved one passes away, you will also want to make sure that your current plan reflects the current situation.
Relocating to Another State
If you decide to move to another state, you will definitely need to have your estate plan updated. There are many state specific laws that may make it necessary to make adjustments in your plan. In addition, since you will have likely sold one house and possibly purchased another one, your plan will need to be updated to reflect these changes.
Significant Changes in Assets
If the overall value of your estate has changed significantly, you will need to update your plan to incorporate the new assets. Common situations where this happens include when you receive a significant inheritance from a loved one, if you get a major bonus at work, or you won a lottery or other prize. As soon as is reasonably possible after these types of events (or before them if you know they are happening ahead of time) you will want to have your estate plan updated to address the changes.
Significant Changes in Liabilities
If your liabilities have changes in a big way since the last update you will need to update your estate plan to adjust where your assets go that would have otherwise gone toward those debts. If you pay off your home, student loans, tax debt, or any other major liabilities it is time to review your estate plan.
Changes to Executors or trustees
When setting up an estate plan you will have to appoint specific executors and trustees to make decisions should you be unable, or after you have passed away. Over time, the people you want in these positions may change. As the people you once selected for these responsibilities get older, move away, or pass away, you will need to choose someone new to avoid problems should they need to step in.
Schedule an Estate Plan Review
If you have had any of the above events take place, or you simply have not had your estate plan reviewed in a year or more, we are here to help. Contact Luis E. Barreto and Associates to discuss your situation and schedule a consultation. We will help ensure your estate plan reflects your current wishes and is prepared for whatever comes in the future.
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