The estate planning process can be daunting. Understandably so, too. It involves contemplating your financial health, how you want to support your loved ones and your own mortality. That’s why too many people put off estate planning until it’s far too late. You don’t want to make that mistake. Yet, even though you might breathe a sigh of relief once you create your initial estate plan, you can’t assume that the plan will suit your needs for the rest of your life. In fact, there are several life events that warrant revisiting and even modifying your estate plan. If you neglect to do so, then your assets could fall into the wrong hands, your vision of the future may fail to become reality, and your estate might wind up subjected to litigation.
So, when should you revisit and potentially modify your estate plan?
There are several circumstances that may warrant revisiting your estate plan. Here are some of the most common:
- Divorces: If you get divorced, then you’ll want to take another look at your estate plan and consider modifying it if your ex-spouse is still named as a beneficiary or heir. If you don’t, then someone who you’re no longer close to could inherit a significant portion of your estate. But you should also revisit your estate plan if anyone close to you gets divorced. Depending on the circumstances, you might want to clarify beneficiary designations or change the amount of inheritance left to your loved one.
- Births: When a child is born into the family, even if part of your extended family, then you should look at your estate plan to see if you want to change it to better support that child and their family.
- Deaths: If you don’t modify your estate plan after the death of an identified heir, then their inheritance will pass down their familial line. That may not align with your wishes, which is why you should revisit your estate plan documentation when someone in your asset distribution scheme passes away.
- New asset acquirement: While you might not want or even need to modify your estate plan for every little piece of personal property that you take on, it’s good idea to modify your estate plan to specifically address larger assets. Therefore, if you buy a piece of property, secure a piece of heirloom jewelry, purchase an expensive piece of art or buy an expensive vehicle, you might want to modify your estate plan to specify where that asset will go once you pass away.
- Soured relationships: If you have a falling out with someone close to you, and you no longer wish to support them or can no longer trust them, then you might want to remove them from your estate plan. That could mean reducing an inheritance amount, completely disinheriting someone or removing someone as a trustee or estate administrator. This will require formal modification of your estate plan.
Don’t put your estate plan at risk by failing to modify it when warranted to do so
The estate planning process can be incredibly nuanced. That’s why you have to be on your toes and know when you should take action to protect your assets and your interests. We know that can be difficult to do when you’re dealing with the realities of everyday life, but that’s why many people choose to confer with their estate planning attorney when important life events arise. If you think you could benefit from that kind of guidance, then don’t hesitate to seek out any support that you may need.