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Estate planning is a critical step in protecting your family and ensuring your wishes are carried out, but it’s not a one-and-done process. Life is constantly changing, and those changes often have a significant impact on your estate plan. That’s why periodic reviews are essential.

Why Updating Your Estate Plan Matters

Over time, various factors can make parts of your estate plan outdated or ineffective. These might include:

• Family Changes: Marriages, divorces, births, and deaths all affect the distribution of your assets and who you may want to name as guardians, trustees, or beneficiaries.
• Financial Changes: Significant increases or decreases in your wealth, acquiring or selling property, or starting a new business may require adjustments to your plan.
• Tax Law Changes: Federal and state tax laws frequently change. Updating your plan ensures it takes advantage of current laws to minimize tax burdens on your estate and beneficiaries.
• Health Changes: A new health diagnosis or disability might necessitate changes to your healthcare directives or power of attorney designations.
• Relocation: Moving to another state could make parts of your plan invalid or require compliance with new state laws.

When Should You Review Your Estate Plan?

We recommend reviewing your estate plan every three to five years or sooner if you experience significant life changes. Consider these common triggers:

• Marriage or divorce (yours or your beneficiaries’)
• Birth or adoption of a child or grandchild
• Death of a beneficiary, executor, or trustee
• Major financial changes (e.g., inheritance, selling a business)
• Changes in state or federal tax laws
• Relocation to a new state

Key Elements to Check During a Review

When reviewing your estate plan, pay close attention to:

1. Your Trust: Ensure the language designating your successor trustees and your plan of distribution reflects your current wishes. Also, confirm that your Trust is properly funded with the appropriate assets.
2. Beneficiary Designations: Update beneficiaries on retirement accounts, life insurance policies, and other payable-on-death accounts.
3. Durable Power of Attorney: Confirm that the individual you’ve named is still the best choice to manage your finances if you become incapacitated.
4. Advance Healthcare Directives: Verify that your Advance Healthcare Directive is up to date and reflects your current preferences as to your agents and end-of-life care.
5. Guardianships: Ensure guardians for minor children or dependents are still appropriate.

Working with a Professional

Updating your estate plan doesn’t have to be overwhelming. At Botti & Morison, we take a team approach to estate planning, collaborating to ensure that every aspect of your plan is thorough and up to date. Whether you need a minor adjustment or a comprehensive overhaul, we’re here to guide you every step of the way.

Attend a Free Estate Planning Workshop

If you’re unsure where to start or have questions about your estate plan, join us for a free Estate Planning/Living Trust workshop. Learn the essentials of estate planning from Christopher Botti, a Certified Specialist in Estate Planning, Trust, and Probate Law. Visit our workshop page to RSVP and secure your spot.

Don’t wait until it’s too late. Keep your estate plan up to date to protect your loved ones and ensure your legacy is preserved.

Thanks for reading.
Christopher E. Botti, Esq., Certified Specialist in Estate Planning, Trust and Probate Law