Let’s Review:

What is an estate plan and why do you need one?

An estate plan is a set of legal documents that specify how you want your assets, debts, and personal affairs to be handled after your death or incapacity. An estate plan can help you:

• Protect your property and beneficiaries from probate, taxes, creditors, and lawsuits
• Ensure that your medical and financial decisions are made by someone you trust if you become unable to do so yourself
• Express your preferences for end-of-life care and organ donation
• Provide for the care of your minor children, pets, and dependents
• Support your favorite charities and causes
• Avoid family conflicts and disputes over your estate

An estate plan typically consists of several documents, such as a will, a trust, a power of attorney, a health care proxy, and a living will. Depending on your situation, you may need some or all of these documents to create a comprehensive estate plan.

Updating Your Estate Plan

When should you update your estate plan?

Once you have an estate plan in place, you should review it periodically and update it whenever there are significant changes in your life or the law. Some of the common events that may trigger the need for an update are:

• Marriage, divorce, remarriage, or death of a spouse
• Birth, adoption, or death of a child or grandchild
• Change in your health or disability status
• Change in your income, assets, debts, or liabilities
• Change in your beneficiaries, heirs, or personal representatives
• Change in your state of residence or domicile
• Change in the tax laws or other regulations that affect your estate
• Change in your goals, values, or charitable interests

As a general rule, you should review your estate plan at least every three to five years, or sooner if any of the above events occur. You should also consult with an estate planning attorney who can advise you on the best way to update your estate plan and ensure that it complies with the current laws and regulations.

Why is it necessary to update your estate plan?

Updating your estate plan is necessary to ensure that it reflects your current wishes and circumstances and that it achieves your objectives in the most efficient and effective way possible. If you fail to update your estate plan, you may face some of the following consequences:

• Your estate plan may become invalid or unenforceable due to changes in the law or your situation
• Your estate plan may not accomplish your goals or may have unintended or adverse effects
• Your estate plan may create conflicts or disputes among your family members or beneficiaries
• Your estate plan may result in unnecessary delays, costs, taxes, or litigation
• Your estate plan may not protect your assets, privacy, or legacy

By updating your estate plan regularly, you can avoid these pitfalls and ensure that your estate plan serves your best interests and those of your loved ones. Contact us today to schedule a consultation and update your estate plan. Email us at info@legacycounsellors.com or call 413-527-0517.