Estate plans, even complex and versatile estate plans, commonly need to be updated throughout a person’s life. Most estate documents are static by nature, drafted to match specific desires, laws, and circumstances at one place and time. Because of that, there it can be a good idea to review an estate plan every couple years to see if an update is due, or even if it might be time for a new estate plan all together.
Some reasons to update an estate plan are more obvious than others. If someone changes their mind about something in their estate documents, it is a good idea to stipulate that change. This could be a change in where one wants their assets to go or whom they want in various roles such as the personal representative, health care agent, trustee, guardian, or attorney-in-fact. A person may also wish to change the recipient of their assets or alter the percentages to be given to each beneficiary.
A less obvious reason for change is if a beneficiary or a person in any of the above-mentioned roles dies. A detailed estate plan will have successors and contingent beneficiaries for when this happens, but then new successors or beneficiaries need to be appointed. An estate plan without living successors or contingent beneficiaries is an incomplete estate plan.
Estate documents are created under whatever state laws are in effect at the time of creation. As such, if those laws change, then updating the estate documents may be necessary. Some laws that impact an estate plan could concern the requirements for a specific document to be valid, restrictions on what can be transferred or to whom, the powers of an appointed agent, or the estate tax threshold. If there is an update to any of these laws or others that may be applicable, an analysis of their impact on an estate plan is necessary. Alternatively, if the creator of an estate plan moves to a different state, an update is necessary to make certain the documents conform to the laws of the new state. Additionally, if the value of assets in an estate has changed, either increased or decreased, the present estate plan may no longer be effective in meeting the needs and desires of the creator of the original plan.
So, what does it take to update an estate document or an estate plan altogether? Sometimes, an update will require a new document, sometimes it might only require an amendment to an existing document. To know what will be most effective, an in-depth analysis of the documents and the change is required. St. Croix Law can help provide that analysis and update an estate plan if changes are needed.
Jacob Grow