You may think that once you have created your estate plan, you can put it away and not think about it again. This is not the case. Perhaps your attorney put together the most suitable estate plan given the circumstances at the time – but circumstances change. External circumstances change, as well as your own personal circumstances. All of these should be reflected in your estate plan. So, when should you review your estate plan?
New tax laws:
As a general rule, if your estate plan was created five or more years ago, you should review it with a lawyer. For instance, a change in political administration can have a major impact on the tax circumstances affecting your estate plan. Each change in administration brings with it its own priorities, which may include changes in tax regulations. Any major changes should require you to contact an attorney to review your estate plan and see what updates need to be made.
When there are big legal changes:
If there have been changes to laws governing estate plans, such as Powers of Attorney or advance medical directives, it needs to be updated. These changes are difficult to keep track of, so we encourage a thorough review or maybe redo your estate plan every five years to be on the safe side as something may have changed.
Changes in your circumstances:
There are a few other circumstances require a fresh look at your estate plan:
- If your estate plan was created in a different state, you should review it. Different states have different inheritance rules, and you may not have your estate plan set up in the best way for your current state, or in the alternative, your estate plan may be ineffective in your new state.
- If the value of your assets changes – this might change your tax circumstances and your estate plan may need to be revised accordingly.
- If any of the accounts or assets included in the estate plan have been retitled or ownership has changed, this also might require changes.
- If anyone named in a capacity in the estate plan changes, for example as a beneficiary or agent– you need to revise your documents. This could include:
- If a spouse or child dies, or you divorce;
- If there are new children who will be beneficiaries; or you need to name guardians for them; or if your children reach the age of maturity (18); and
- If the agent in a Power of Attorney or executor (“personal representative”) of a will dies or you change your mind about the suitability of the person and want to name a new person.
You may also want to revisit your advance medical directive as part of a living will in light of COVID-19 as the time limits of ventilator use may no longer be suitable.
If you’re starting to think about your digital legacy, read our blog on passwords and digital accounts so you know what you need to do.
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If your estate plan is at least five years old and you would like to review it or there has been a change in your circumstances, please call us at 720 457 4573.
