ESTATE PLANNING CHECKUP: IS YOUR ESTATE PLAN UP-TO-DATE?
Estate Planning Awareness Week, from October 17th to 23rd, emphasizes the crucial need for not only creating an estate plan but also keeping it up-to-date. While many recognize the importance of having an estate plan, the significance of regularly updating it is often overlooked.
Outdated estate plans can be as problematic as not having a plan at all. It's not uncommon to hear from the loved ones of someone who has passed away or become incapacitated, only to find that their estate plan is no longer effective due to lack of updates. Once a life-changing event occurs, it's too late to amend the plan, leaving loved ones to navigate potentially complicated and lengthy legal processes.
Estate planning should be viewed as a continuous process, adapting to life’s changes. As time passes, families grow, assets vary, laws change, and personal goals evolve. Therefore, your estate plan should reflect these changes to remain effective.
Even without major life changes, an annual review of your estate plan is advisable. However, certain life events necessitate immediate updates to ensure your plan remains functional and prevents potential legal conflicts. If you experience any of the following, promptly update your estate plan:
Marriage: Your new spouse should be included in your plan.
Divorce: Remove your former spouse and update your beneficiaries.
Birth or Adoption of a Child: Ensure your new child is provided for.
A Minor Child Reaches Adulthood: Adjust guardianship and financial provisions accordingly.
Death of a Loved One: Remove the deceased from your plan and update beneficiaries.
Serious Illness or Injury: Include provisions for potential incapacity.
Moving to a New State: Address any differences in state laws.
Significant Changes in Assets or Liabilities: Reflect these changes in your plan.
Buying or Selling a Business: Update your estate to account for these changes.
Changes in Estate-Tax Exemptions: Adjust your plan to take advantage of or comply with new tax laws.
Maintaining an updated estate plan is so vital that systems are available to ensure your plan is reviewed regularly, adapting to changes in your family, assets, and relevant laws. It’s important to consider these systems during your planning process.
Moreover, your estate plan is designed to protect your loved ones in the event of your death or incapacity. Engaging an estate planning professional can benefit not just you but your entire family. By getting to know your family and including them in the planning process, everyone will understand your strategies and be prepared to act if something happens to you. This is especially critical if you have minor children, as it ensures they are cared for by people you trust, avoiding temporary placement with strangers.
Estate planning services should extend beyond document creation to form lasting relationships with you and your family. This approach, often termed Life & Legacy Planning, ensures that your estate plan evolves with you. It's not just about preparing for your death but about making life decisions that build a legacy.
Ultimately, effective estate planning is about creating a life you love and leaving a meaningful legacy. Regularly updating your estate plan is essential to achieving this goal. Start your plan today to ensure it grows and changes with you, keeping your family out of court and free from conflict.
This article is a service of Zarda Law, S.C. We do not just draft documents; we ensure you make informed decisions about life and death, for yourself and the people you love. That's why we offer Legacy Planning Session, during which you will get financially organized and make all the best choices for the people you love. You can begin by scheduling a Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.
