While there is no specific rule as to how often one should update their estate planning documents, here are five simple indications that it is time to re-evaluate your estate plan.
FIRST, pay attention if there are life-changing circumstances for someone who is or may become your executor, trustee, or agent under a power of attorney. For instance, if you have an adult child listed as an agent to make your healthcare decisions who is now experiencing their own medical issues, making those additional decisions on your behalf may be extra burdensome. On a similar note, if your oldest child is now an adult, it may be a good time to designate that child as the guardian of your other children, or as your own agent, executor, or trustee.
SECOND, take note when you or your family member has a significant life change. For example, a marriage, divorce, illness, diagnosis, loss of a job, or demotion can indicate that an update in your estate plan is necessary.
THIRD, be mindful when the law changes. Many people think that their accountants, investment advisers, or insurance agents will give them a call if there is a change in the law that may impact them. While we at Lederman Law keep our clients updated as to all relevant changes in the law, many other professionals do not.
Therefore, the best course of action is to subscribe to our newsletter to stay on top of changes in the law. Sharing this information with your other professional advisers will help remind them to address your needs.
FOURTH, take account of an anticipated retirement. Retirement can be an opportunity to take advantage of certain tax implications and legal responsibilities. This could also mean the start of long term care planning (i.e., a nursing home placement).
LASTLY, if you desire to give assets to a charity, it is important to consult with your attorney first so that this action is consistent with your estate plan, and to ensure you minimize taxes and other expenses to maximize the value of the gift to the receiver.
