When Do I Need to Update My Estate Plan?

Most of us understand the importance of annual physicals, regular dental exams and routine maintenance for our cars. It is just as important to schedule an annual estate planning review or check-up. Do not neglect to regularly review and update your estate planning, as it is vital to the well-being and protection of yourself and your loved ones.

At a minimum, you need to update your estate plan whenever there is a change in your life or the laws that affects your planning. Your estate plan is not static. It needs to be continually reviewed and updated to reflect changes in the tax and Medicaid laws in addition to many other life changes. One or more of the following events may require you to revise your estate plan:

• The birth, death, divorce or remarriage of anyone associated with your estate plan. This includes your marriage, divorce or the birth or death of a child. Or, your own children get married, divorced, die or have children of their own.
• The value of your assets changes significantly (up or down).
• Your health changes. One day you’re vertical; the next day you’re horizontal. Trust me, nothing changes your perspective more than when you’re lying in bed, horizontal.
• You move to a different state.
• One of your beneficiaries becomes incapacitated.
• One of your named fiduciaires (executor, trustee or agent) dies or becomes incapacitated or your relationship changes.

Don’t be like a lot of people who signed their Wills 10 or 20 years ago and then threw them in their file cabinet or safe deposit box, never to look at them again until forced to by the occurrence of a life changing event. If you’re lucky, it won’t be too late and you will be able to update your estate plan before you die or become disabled. Your estate plan has to work when you need it most, otherwise it is not worth the paper on which it is printed.

Be open to becoming re-educated about the need for estate and long-term care planning. While the occurrence of the life changing event may be the catalyst for making an appointment to update your planning, make sure that your attorney educates you regarding changes in the tax and Medicaid laws. And don’t forget that you must educate your attorney about your family and your needs and goals.