Key Considerations When Reviewing Your Estate Plan

There are many different events in life that can happen, so it is important to regularly review your estate plan. As you are determining if you need any updates in your estate plan, here are some common things that we see:

Life Events and Changes:

One of the primary reasons to review an estate plan is when significant life events occur. This can include events such as marriage, divorce, birth or adoption of a child, or the death of a loved one. When milestones like this occur, it frequently requires updates to your beneficiary designations, guardianship provisions, and asset distribution plans.

Guardianship for Minor Children:

If you’re a parent of young children, one of the most crucial aspects for parents to consider in your estate plan is the appointment of a guardian for your minor children. This decision should not be taken lightly and should be regularly reviewed and assessing whether the chosen guardian is still willing and able to fulfill the responsibilities. If circumstances have changed, consider alternative individuals to be designated in this important role and update your plan accordingly.

Financial Adjustments:

Changes in your financial circumstances can significantly impact estate plans. It is important to review your estate plan when there are significant changes in your assets, investments, debts, or income. This will ensure that your estate plan continues to align with your financial goals and enables effective wealth preservation and distribution.

Family Dynamics and Relationships:

Family dynamics and relationships evolve over time. Consider any changes in your relationships with beneficiaries, executors, or guardians to ensure they are still the best person to designate to make decisions on your behalf or execute your estate plan. It is important to review your current wishes and evaluate how to maintain harmony among family members or if there are better individual suited to be your executor or trustee.

Healthcare and End-of-Life Decisions:

Healthcare directives and end-of-life decisions are critical aspects of any comprehensive estate plan. Periodically review and update your healthcare proxy, living will, and durable power of attorney for healthcare are important to ensure you still wish for those individuals to oversee your medical decisions. Communicate your wishes to your loved ones and medical professionals to ensure your healthcare decisions align with your current beliefs and desires.

Business Succession Planning:

If you are a business owner, it is crucial to include a succession plan within your estate plan. To ensure a proper succession of your business there are certain documents in place, including any updates to changes in ownership, management, or business structure. A well-executed business succession plan will facilitate a smooth transition and protect the continuity of the business.

Legal and Tax Law Updates:

Laws and regulations surrounding estate planning, taxation, and probate can change over time. It is important to stay informed about these updates to ensure compliance and maximize the benefits of your estate plan. It is important to consult with an attorney who specializes in estate planning to assess the impact of any legal or tax law changes on your plan.

Communication and Documentation:

One thing we encourage our clients to do is to have open and honest discussions with your chosen guardians, trustees, and family members involved in your estate plan. Reviewing your plan and wishes with them can help make them feel more prepared and equipped, should they need to step into a role you’ve designated for them. If there are any changes, it is important to also to share these as well.

Reviewing and updating our estate plans is essential to protect yourself and ensure your estate plan is executed according to your wishes. By considering the key factors outlined in this blog post, you can ensure that your estate plan aligns with your current circumstances, goals, and the best interests of your loved ones. Consult with an experienced estate planning attorney to guide you through the process and provide you with the peace of mind that comes from knowing your estate plan is up to date and give you peace of mind.