Why Your Estate Plans Need Periodic Review and Revision

If you have created a will, trust, or other estate plans, you are already ahead of most people. Although estate planning is an essential responsibility, many people avoid creating an estate plan or procrastinate it indefinitely. However, estate planning does not end once you draft and sign the estate planning documents. Your estate plans need to be periodically reviewed and updated as you and your family grow and change. Experts generally recommend reviewing your estate plan every five years to be sure that it still meets your needs and those of your family.

Reasons You May Need to Modify Your Estate Planning Documents

Your estate plan allows you to dictate how your assets are distributed to beneficiaries, how end of life decisions should be made if you are incapacitated, who should act as a guardian to minor children if you pass away, and much more. If you change your mind about issues addressed if your estate plan, your financial situation changes, or your family changes, you may need to modify your estate plans. Some of the top reasons that estate plans must be modified include:

• You gain a new family member – One of the most joyous reasons to change your estate plan is the addition of a family member. Whether you had another child, welcomed a new grandchild, or your family expanded through marriage or adoption, you will need to account for the new family member in your estate plan.
• Divorce or remarriage – Families are constantly growing and changing. If you got divorced, you most likely want to remove your ex-spouse as a beneficiary on your estate plan. Do not make the mistake of assuming that your property will not be distributed to your ex-spouse simply because you got divorced. Similarly, if you got married, you will need to add your new spouse to your estate plan.
• Beneficiaries or other key individuals pass away – Sometimes, beneficiaries pass away before they can receive an inheritance. In other cases, a person to whom you have given certain responsibilities, such an executor or trustee may become incapacitated or unable to carry out their assigned duties. Your estate plan will need to be revised if a beneficiary or fiduciary passes away or becomes incapacitated.
• You have accumulated new assets – If you made your estate plan several years ago, you may have bought real estate property, received an inheritance from someone else, accumulated passive income, or otherwise increased your estate since you created your estate plan. If this is the case, you may want to review the plan and ensure that all of your assets are accounted for.
• Adding a charitable contribution – Many people choose to give money or property to a charity in their estate plan. If you have decided to make a charitable contribution upon your death, it is important to make this decision official by writing it into your estate plan as soon as possible.

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Call Us for Help Today

Estate plans must be periodically updated and revised. To get the help you need in modifying your estate plan or creating an estate plan for the very first time, turn to the experienced Naperville estate planning lawyers at the Gierach Law Firm. Call 630-756-1160 for an appointment.

Source:

Forbes