While it would be nice to create your Estate Planning documents and then forget them… that is not always the best choice to ensure that your documents will do what you need them to do, when you need them to do it. In my practice, I suggest that my clients come in to review their documents periodically. This allows everyone an opportunity to review the documents for many reasons.
First, are the people that are named in the documents still the right people for the job? You may have named someone who has moved, who is no longer a close friend or relative, who may have passed away or become incapacitated. You may have even had the opportunity to see the person under similar situations and realized that they did not act the way you thought, or would want them to, if you were in that situation. There are many reasons why the person you have listed may no longer be the right choice for you. When that happens, it is time to update your documents.
Second, are the people you have named in the documents still the people you would like to inherit your belongings, or have you created any limitations or restrictions on them receiving the assets that are no longer necessary? As children and heirs get older, you may find that restrictions on them receiving assets as a lump sum are no longer necessary, and instead they could inherit their share as a lump sum. You may find that you named people to inherit before your children were born, or grandchildren arrived, and you would prefer your assets to go to those loved ones instead. Perhaps the people that you want to inherit may not be ready to receive a large inheritance and you would prefer to add restrictions, limiting how much they will inherit at a time. When this happens, it is time to update your documents.
Third, have your assets changed substantially? You may have inherited assets substantially increasing what you are leaving to your Heirs, or the opposite may be true, your estate plan may be based on you having substantially more assets that you currently have. Due to the change in your assets, you may want to revisit who is inheriting what and when. If that should happen, it is time to review your documents.
Lastly, the laws may have changed. There may have been changes to requirements for your documents to work for you.. Also, the estate tax laws continue to change, and your plan may be based on older laws that could cause unintended consequences at your passing for your spouse and your heirs. When the laws change, it is time to update your documents.
If you haven’t looked at your documents in the last seven years, it may be time to review. It is a great time for you to ask questions and refresh your memory on what you have set up and how the documents work. For more information or to schedule an appointment to discuss your documents, your situation and your options, contact us.