Why Estate Planning is Never Truly "Complete"

If you currently have an estate plan in place, you are aware of how crucial it is to safeguard your assets and make sure that your loved ones will have access to money in the event of your incapacity or demise. Yet creating an estate plan is just the beginning.

Updating your estate plan periodically is equally important because your estate plan should reflect any circumstances or situation changes. With that in mind, estate planning attorney Elaine McGinnis explains why estate planning is never a set-it-and-forget-it process. It is never truly “complete.” 

Why You Should Update Your Estate Plan  

You should review your estate plan periodically over the course of your life to ensure that everything is in place and that no changes are necessary.  

Although there are no rules about how often you should review your estate plan, it is recommended that you complete more frequent reviews during your working years before you retire.  

You should review your estate plan every five years to ensure that it is up to date.  

Once you are retired and are enjoying your golden years, you should review your estate plan every eight to ten years.  

When to Update Your Estate Plan   

While it is important to routinely review your estate plan, some life events should trigger updates to your estate plan. Some of these life events include: 

Marriage  

If you get married, you will likely want to include your new spouse in your estate plan. This can include changing the beneficiaries in your Will, retirement plans, or life insurance policies. You may also want to set up a revocable trust. If you don’t update your estate plan once you get married, you risk leaving your widowed spouse without access to assets.  

You might also want to revisit your estate plan if your child has recently wed because your son or daughter-in-law may someday come to control the inheritance you intend to give them.

Divorce  

Forgetting to update their estate planning is among the most frequent errors people make after receiving a divorce.

Failing to update your plan after a divorce could result in your ex-spouse acting as a beneficiary of your estate.  

Birth or Death of Beneficiaries 

When a beneficiary or fiduciary in your estate plan passes away, you should review your estate plan because you might need to adjust your distribution strategy or appoint a new fiduciary.

The birth of a child or grandchild should be  noted in your estate plan to ensure that all  beneficiaries are properly identified.  

Adoption 

If you adopt a child or add a stepchild to your family, it is important to review your estate plan. If you legally adopt a child, he or she will be considered an equal to your biological children and should be treated as such in your Will or trust documents.  

A Child Turning 18  

Because they cannot inherit directly from your estate until they are of legal age, you must protect your children's inheritances while they are minors. You can choose to give assets to your children directly once they are considered legal adults.

Changes in Assets 

If you buy or sell a business or other valuable assets, you may need to review and update your estate plan.  

Retirement  

Retirement account withdrawals may begin when you retire, which should cause you to review your plan.

Illness  

In an ideal world, your estate plan would be prepared to deal with your incapacity or a terminal illness like cancer or Alzheimer's, but if you are given a catastrophic medical diagnosis, it is crucial to examine your estate plan.

If you haven’t already, work with an estate planning attorney to establish an advance health care directive and a medical power of attorney.  

Learn More> The Top 7 Estate Planning Terms You Should Know  

Let’s Review Your Estate Plan  

The key to a comprehensive and effective estate plan is periodic review and maintenance. Life happens and we need to adapt the plan when it does. 

If you want to modify or review your current estate plan, contact Elaine McGinnis P.A. today. Our Tampa, FL estate planning attorney will help guide your estate plan to ensure all your needs and wishes are carried out.  

We are known for our compassionate approach to the estate planning process. Contact Attorney Elaine McGinnis to review or update your estate plan today; 813-851-3380.