For many people, once they have an estate plan in place, it is assumed that they are set for life. While establishing an estate plan is essential, you will still need to update it from time to time to ensure it reflects your current situation. For most people, it is a good idea to update their estate plan either every couple of years, or whenever there is a major change in your situation. When updating an estate plan, you want to make sure you consider all important factors to ensure you don’t miss a thing. Going over the following “life categories” will help you when updating your estate plan.
1. Changes to Your Family
For most people, family is the main motivating factor when it comes to estate planning. You want to make sure your assets are passed down to your loved ones according to your wishes so that they will get the most benefit out of them. When updating an estate plan, make sure it reflects the current state of your family. Have you had any new children or grandchildren? Is someone struggling with substance abuse and you want to make sure they don’t get a lump sum of money that could cause problems? Has anyone passed away since the last update? These are all good questions that will help you determine what changes are needed.
2. Updates to Your Assets
If there has been a significant change in your assets, you will want to make sure your estate plan is updated to reflect this. These types of changes are quite common, especially as you progress through retirement. You may have paid off a home, dipped into retirement funds, or had to move things around for Medicaid planning. All of these actions (and many others) can have an impact on your estate planning strategies.
3. Consider Health Concerns
Making sure your wishes are honored when it comes to medical treatment is an important part of your estate plan. If you have had significant changes to your health since the last update, it can be smart to make changes to your plan as well. For example, naming a health care Power of Attorney is often a good idea.
4. Picking Executors and/or Trustees
Naming people to step in and make decisions on your behalf is one of the most essential components of an estate plan. Every time you update your plan you will want to look closely at who you have named for all important roles, and make sure they are still up to the task. If someone has passed away, moved away, or just fallen out of your life, now is the perfect time to make a change.
Talk to an Attorney
These are four of the most important areas to think about when making updates to your estate plan. Of course, every individual is unique and will have their own specific areas where adjustments may need to be made. The best way to ensure your estate plan reflects your current and future needs is to speak with an attorney. Contact ProActive Legal Care to set up a consultation today.
