While taking the initial estate planning step deserves a pat on the back, the process is not really a one and done type situation. Your estate plan will need updating as time goes on. Let’s look at some of the different reasons why it’s important to keep your estate plan updated.
Reasons to Keep Your Estate Plan Updated in Arvada, Golden, and Jefferson County
1. Life Changing Events
The most common life changing events that would precipitate a person needing to update their estate plan are:
- Birth / Adoption
You may need to add or remove certain people depending on which life changing event applies.
Different states have different estate planning and probate laws. If you move to a different state from where you originally created your estate plan, you will want an estate planning attorney from the new state to review the documents and make sure everything is up to date and legal. You also want to make sure your new location is reflected in the estate planning documentation, so that a probate case cannot be opened in the former state, further complicating matters.
3. Change in Tax Laws
Tax laws are constantly changing and sometimes the changes effect estate planning law. You will want to make sure that your estate plan is not negatively affected by any new tax law.
4. Change in Relationships
If you have chosen someone to be an executor, beneficiary, or trustee it usually means that you have a trusting and positive relationship with that person. If something should change, and the relationship becomes negative, you will want to make sure they are no longer in a position of trust in your estate plan. It may also be the case where the person you originally chose is no longer able to fulfill that role, so make sure to update accordingly.
5. Change in Debt and Assets
As you move forward in life, you will likely gain more assets and sometimes more debt. You will want to have your estate plan reviewed to makes sure that any new assets or debts are reflected correctly and any necessary revisions are made.