You may have the perfect plans for your estate, but failing to update them as life changes could be your undoing. An outdated estate plan could expose your loved ones to unnecessary complications or lead to legal issues that can derail your final wishes. Think of a will that leaves out some assets or includes your ex, yet you divorced a long time ago.
It is advisable to update your estate plans every couple of years or after significant events, such as:
- Changes in your family structure like births, deaths, marriages or divorces
- Changes in your financial situation
- Health changes
- New laws affecting estates or taxes, among others
Any new developments that affect your life and assets should necessitate a review of your estate plans, given that you may not have factored them into your existing estate plans.
Review these key components
Updating your estate plans means going through every aspect of your current arrangements. Review your will and trust documents to ensure everything aligns with your present situation and wishes. Revise your list of beneficiaries and asset distribution guidelines if necessary to avoid any loose ends.
Updating your preferences for individuals in positions of authority like health and financial proxies, executors and guardians to ensure they are still suitable and willing to act on your behalf is equally important.
Remember to verify that beneficiaries on insurance policies, retirement accounts and other financial instruments are also up to date.
Do not overlook legal guidance
Updating your estate plans is as crucial as creating them, often involving legal and financial decisions that can have considerable long-term implications. Seeking informed guidance can help you avoid unintended consequences, address complex situations and ensure your estate plans are comprehensive and legally sound.