Why Regular Review and Updating of Your Estate Plan is Necessary
An estate plan is a set of legal documents that outlines how you want your assets to be distributed and managed after you pass away. It is an important tool for ensuring that your loved ones are taken care of and that your assets are distributed according to your wishes. However, there are several reasons why you may need to change your estate plan over time.
One of the most common reasons to update your estate plan is because of a change in your circumstances. This can include getting married, divorced, having children, or experiencing a significant change in your financial situation. For example, if you get divorced and your current estate plan leaves everything to your spouse, you will likely want to update it to reflect your new circumstances. Similarly, if you have financial or health problems, you may want to add a trust to your estate plan to protect your assets for your family members or against potential creditors. There could also be a new need for Medicaid planning to preserve your wealth for your children. Importantly, you should also consider your beneficiaries’ situation. You might want to change your beneficiaries or update how they receive your wealth if their circumstances have changed.
Another reason to revise your estate plan is if there has been a change in the laws that govern estates and trusts. For example, it may be necessary to update your estate plan to take advantage of new tax laws.
You may also want to change your estate plan to reflect new wishes or priorities. For example, if you have always been a proponent of charitable giving but never got around to making any arrangements for charitable donations in your estate plan, you may want to add it now.
Finally, if you have appointed a trustee or executor of your estate or a guardian of your children and they are no longer able or willing to serve, you should consider updating your estate plan to appoint a new trustee, executor, or guardian.
In conclusion, estate planning is an ongoing process and it is important to review and update your estate plan regularly to ensure that it still reflects your wishes and circumstances. If you have experienced a significant change in your circumstances, or if there have been changes in the laws that govern estates and trusts, it is important to consult with an estate planning attorney to determine whether your estate plan needs to be updated. You can call us at 516-570-4016 to discuss your goals.