Adults who make an effort to establish an estate plan may worry about their family members. They may also have clear expectations regarding the long-term legacy they leave behind when they die. Estate planning documents, including wills and trusts, give people an opportunity to guide their loved ones and provide clear standards for the distribution of their property during the probate process.
Unfortunately, some testators who have already drafted estate plans may have a false sense of security. They feel like they have protection even though their documents could be a decade old or even older. The reality is that outdated documents are at risk of challenges in probate court. Family members and other interested parties can sometimes convince the courts to set aside estate planning documents because they do not include terms that realistically reflect the decedent’s circumstances.
Reviewing and updating estate planning paperwork is crucial to the protection of the testator drafting documents and their dependent family members. How often should people make modifications to their estate plans?
Anytime their circumstances change
There are many types of personal changes that can undermine the validity of an estate plan. If the testator divorces or their spouse dies, that could leave them with significantly outdated documents. Remarrying can also make updating an estate plan a beneficial move.
The addition of new family members due to the birth of children or grandchildren may force people to reevaluate their estate plans. So can changing financial circumstances. The loss of assets due to a house fire or the decision to sell a business can change the terms that people must include in their estate plans. Acquiring new assets, such as a home or a vehicle, can also make revising existing documents necessary.
Even changes in health may prompt people to revisit their existing estate plans or add new documents that they had not drafted previously, such as durable powers of attorney.
Every few years
Those who have not experienced a dramatic change in circumstances may still benefit from updating their estate planning documents. Most changes are gradual and take place over time. Therefore, testators often need to make a point of reviewing their documents every two to three years to make sure they still appropriately address family needs and personal resources.
Committing to making occasional estate planning updates can be as important as drafting documents initially. Testators who occasionally review and revise their documents have better control over their legacy and may enjoy better peace of mind because they know they have plans in place for emergency scenarios.