Just because you have an estate plan in place, it doesn’t mean that you can just put it aside and forget about it. Life changes as time passes and often your estate plan needs to be modified to reflect those changes. If you don’t keep it updated and something happens, it may mean that your current wishes are not going to be reflected in your estate plan. And the written estate plan is what must be enforced, even if your loved ones know better.
Reasons to Update Your Estate Plan
Changing Tax Laws
Every once in a while, tax laws will change or update and the implications affect estate planning laws. An outdated estate plan may not address tax law changes. This can result in your estate paying more in taxes than is required – which isn’t fun for anyone. Having a knowledgeable estate planning attorney review your estate plan can ensure that your plan is up to date regarding tax laws.
As life progresses, its likely that you will experience some life events that will require updates to your estate plan. These life changes include marriage, divorce, births, adoptions, and disabilities.
Moving to Another State
Estate planning laws vary state to state. If you draft your estate plan in another state and then move to Arvada, Colorado, you will want to make sure that your current estate plan complies with Colorado laws. You don’t want your family to have to deal with probate in different states because your estate plan is not updated to where you currently reside.
Changes to Financial Situation
It’s likely that your financial situation will change in one way or another after you initially create your estate plan. Your debts and assets will vary throughout your life. When a major change occurs, you should have an attorney review your estate plan to make sure that everything is covered or revise the plan to reflect the financial change.
Feelings Have Changed
If your feelings about a chosen beneficiary, trustee, or estate executor has changed, it’s necessary to amend your estate plan. It could be that someone you chose for a certain position is no longer able to fulfill that role. Or possibly feelings have changed and you longer trust the person. No matter the reason, you want to make sure that your estate plan reflects exactly who you want to appointed to oversee those important functions.