Common Reasons to Update Your Estate Plan
An estate plan should not be static, or something that you create and never look at again. It should be a mirror for your life, constantly reflecting your goals and wishes as they change and evolve over time. It is recommended to revisit your estate plan at least every three to five years to make sure it is still suitable. However, certain life events also prompt updates. Speak with an experienced estate planning lawyer in St. Louis for legal guidance.
A New Marriage (Or Divorce)
Introducing someone new into your family through marriage may require updating your estate plan to include this individual in your vision for the future of your estate. If you marry for the first time, for example, you will most likely want to include your new spouse in your estate plans. If you remarry, you will need to update your existing estate plan to include your new spouse as well as his or her children.
You may also need to remove your ex-spouse. If you get divorced (or widowed), your estate plan should change accordingly. You may need to choose someone else to be your administrator, power of attorney or health care directive if these positions were previously filled by your spouse. This should be done as soon as possible to avoid an uncomfortable situation if you pass away or become incapacitated with your ex-spouse still listed.
The Birth of a Child
Adding a new member to your family in any regard – through marriage, adoption or birth – may require taking a look at your estate plan. You might wish to add the new child to your estate planning, such as listing him or her as a beneficiary to inherit from you. Any children under the age of 18 also need legal guardians assigned to them in your estate plan in case of your untimely death as a parent.
Relationship Changes
If your relationships with those originally included in your estate plan change, so should the plan itself. If you are no longer friends with someone you named as your power of attorney, for example, it is important to appoint someone else before it’s too late. You only want to bestow these important responsibilities on someone you wholeheartedly trust.
Moving to a Different State
Different states have different laws in terms of estate planning and administration. Missouri’s laws of probate and intestate succession may be vastly different from those of another state. For this reason, it’s important to update your estate plan if you move to a different state or country. Your estate plan should reflect the laws in the state where you currently reside to avoid potential issues down the road.
A Substantial Change in Circumstances
Any significant change in your circumstances warrants a review of your current estate plan with an estate planning lawyer. This includes a change in your financial situation, a new job, winning or inheriting money, marrying or remarrying, someone in the family passing away, the birth of a new child, or the purchase of another property or high-value asset. An attorney can review your situation and advise you on whether or not it is in your best interest to update your estate plan based on the new development.
It’s Been More Than Five Years Since the Last Update
Even if you haven’t had any seemingly major life changes, it’s a good idea to update your estate plan at least every three to five years. If it’s been longer than this, your plan may contain old or outdated financial information. It may no longer meet your needs or accurately reflect your goals for the future. Contact an attorney to go over your estate plan to ensure it is properly up to date before it’s too late.