So you have a trust, will, and some powers of attorney. Congratulations, you should give yourself a well-deserved pat on the back for completing some that almost half of people never do. But just because you finished your planning does mean it is done. A recent article from The Record-Courier, “Revising an estate plan crucial to making sure end wishes are carried out,” takes a look at why it is crucial to keep your plan up to date and when you may need an update.
Having your planning reviewed and updated makes sure that your wishes are carried out. Without updates to your planning, the planning may end up not accounting for all your assets or even directing investments to places or people that no longer exist. According to the article, eight main categories could warrant an update to your planning.
- Whether it is a new child, grandchild, or even niece or nephew, a new person in your life can mean changes to your planning. Therefore, it is essential to have your planning reviewed to ensure that this new person is included in the way you want.
- Losing someone is hard. It affects your life in many ways, and it also affects your planning. After a loved ones’ passing, your planning should be updated to reflect the change and keep the distribution process as clean and straightforward as possible.
- Health Changes. If you, someone who will inherit or someone you have named to be in charge, become ill or disabled, your planning should be updated to reflect this. You may even need special provisions added to your planning to protect that person.
- Asset Changes. As your assets increase, decrease or change type, your planning needs to be updated to reflect these changes. Asset levels and types have a significant effect on how proper planning is designed and how it functions.
- Business Changes. If you have a business and restructure or make any other changes to its operation, such as stock trading and other modifications, your planning should be updated to reflect these changes to ensure that your business can continue even when you are gone.
- People Changes. Not to be cliché, but people change. The person you chose to manage your finances three years ago may not be the best now. AS the people in your life grow, mature, and change, you should update your planning to reflect this.
- Marriage Changes. Whether you’re tying the knot or severing it, changes to your marital status need to be reflected in your planning.
- Time changes many things, including laws. It is crucial to have your planning reviewed at least every few years to ensure the rules and regulations used to create it still apply. Changes to the law can significantly affect your planning.
No matter the reason for the change, speaking to an experienced estate planning attorney will help make sure that your planning works for you.
Reference: Anonymous. (2021) The Record-Courier. Revising an estate plan crucial to making sure end wishes are carried out. https://www.recordcourier.com/news/2021/sep/19/revising-estate-plan-crucial-making-sure-end-wishe/