Estate Planning Check Up: Is Your Estate Planning Up-To-Date?

If you already have an Estate Plan, congratulations! You are ahead of the majority of Americans. 

According to a recent survey, only 44% of American adults have started Estate Planning. 

If you have started Estate Planning, the next question is when was the last time you reviewed or updated your plan? 

Many people create an Estate Plan and then never revisit it. 

This can be a BIG mistake. 

Why?

Because there are many life events that can happen that would warrant a change to your Estate Plan. 

What Life Events Can Happen To Change Your Estate Plan?

No one's life is static.  

You get married or divorced, you have kids, they grow up and move out, someone named in your will dies, you move to another state, acquire additional assets, your beneficiary gets married or divorced - all of these things can happen over the course of your lifetime. 

And with each new life event, your estate plan may need to be updated to reflect your changed circumstances.

What can you do?

Here’s a few things you can do to keep your Estate Planning up to date:

Review Your Documents Regularly-You should review your Will, Power of Attorney, and Advance Directive at least once every three to five years or whenever there is a significant change in your life, whichever comes first. This will ensure that your documents still accurately reflect your wishes. 

Any changes in state or federal law that could impact your Estate Plan? The laws governing estate planning are constantly changing. What was legal last year, may no longer be legal today. As such, it’s important to stay up-to-date on any changes that could impact your plan. An experienced estate planning attorney can help you determine if any changes in the law could impact your existing plan. 

Changes in the value of your assets since you last reviewed your Estate Plan? If you have significant assets, it’s important to regularly review the value of those assets and update your estate plan accordingly. Especially, if you have created a trust as part of your Estate Plan as trusts are often funded with specific dollar amounts rather than percentage amounts. 

Update Beneficiary Designations as Needed- Are the named executor(s) and trustee(s) still willing and able to serve in those roles? Beneficiary designations are often overlooked when updating an estate plan but they are just as important as your will or trust. 

The executor is the person responsible for managing the distribution of your assets according to the terms of your will. The trustee is the person responsible for managing any trusts you have created. It’s crucial to name someone you trust implicitly in these roles. Failure to update beneficiary designations can cause problems down the road.                          

Bottom line is it’s important to have an up-to-date Estate Plan, because life is always changing and you never know when something unexpected will happen. 

Taking the time to review your Estate Plan periodically will help make the transition a little easier for everyone involved.

If you need help creating or updating your Estate Plan, contact us today. 

We can help you ensure that your loved ones are taken care of exactly the way you want them to be. For more information, contact our office at (805) 201-2552.

DISCLAIMER: The content contained herein is for general informational purposes only.  These materials do not constitute legal or other professional advice.  We do not accept any responsibility for any loss that may arise from reliance on this information.  No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.