When Should You Review and Update Your Estate Plan?

Death is final, but the plans you make to distribute your assets after you are gone should be flexible. Your legal documents should be reviewed on a regular basis, because revisions might be warranted to reflect changes in your life. Relationships, finances and the law can shift dramatically over time, it’s best to be sure that estate planning instruments such as wills, trusts and guardianship instructions evolve as well.

Even if your situation has remained relatively stable, it’s a good idea to schedule some time with your estate planning attorney every few years. Perhaps someone you named to serve as will executor or provide care for your children is no longer capable of doing so. Your attorney can also advise on tax law changes that might affect the legacy you leave to your loved ones. In some cases, no dramatic occurrence has taken place, but going over your estate plan gives you the chance to think about whether your priorities have changed.

Of course, there are several life events that should spur you to make changes without hesitation, such as:  

• Birth or adoption — Adding a child to your family can be both joyous and overwhelming. With all of the additional responsibilities, you should not overlook the importance of preparing guardianship documents, changing beneficiary designations and possibly providing for your son or daughter through your will or a trust. 
• Marriage or divorce — Many families have been thrust into conflict when they realize that someone’s former spouse will collect assets or receive legal control through a power of attorney document. When you’re getting married or divorced, you should look at various documents and holdings, including wills, trusts, retirement accounts, life insurance policies and titles to jointly held properties. 
• Death or incapacity of a beneficiary or a fiduciary — If a named executor, trustee, guardian or beneficiary has died or can no longer serve, you should make appropriate changes promptly. Another way to address this is by appointing successors for potential contingencies.  
• Major financial shift — A business sale, significant market gains or losses, an inheritance or real estate purchases may warrant tax planning updates, trust funding or retitling to preserve step-up opportunities and protection against creditors.
• Change in state residency — Different probate rules and procedures can affect how well your plan functions.

A thoughtful review now can prevent disputes, taxes and delays later. If it has been more than two years since your last update, or you’ve experienced any of the events above, The Collierville Law Firm team can evaluate your current documents, identify gaps and make any changes you believe are warranted. Please call 901-614-0318 or contact us online for a free initial consultation.