By Attorney Wendy Weston
Life is rarely static. Relationships evolve, families grow, and circumstances change. An estate plan, designed to ensure your wishes are carried out after you’re gone, should reflect these changes. Here’s why regularly updating beneficiaries and reviewing your estate plan every 3-5 years is crucial:
Ensuring Your Wishes are Honored:
Beneficiary Changes: Marriages, divorces, births, and estrangements can all impact who you want to inherit your assets. Outdated beneficiary designations on retirement accounts, life insurance policies, or even payable-on-death bank accounts can lead to unintended consequences. Regular updates guarantee your assets go to the people you truly care about.
Evolving Family Dynamics: The arrival of grandchildren or a growing family might prompt you to adjust how you distribute your estate. Reviewing your plan allows you to incorporate these changes and ensure everyone you want to be included is accounted for.
Adapting to Life’s Curveballs:
Incapacitation of a Beneficiary: If you named a beneficiary who becomes incapacitated, you may want to include a trusted individual to manage their inheritance on their behalf. Reviewing your plan allows you to address such situations and safeguard your loved ones’ interests.
Changes in Personal Representative/Trustee Roles: The person you initially chose as personal representative (also known as Executor) or trustee might no longer be suitable due to health reasons, relocation, or personal conflicts. Reviewing your plan allows you to appoint a new individual if necessary.
- A person named in a will as the personal representative is responsible for managing the deceased’s estate during probate. This includes locating assets, paying debts and taxes, and ultimately distributing inheritances according to the will’s instructions. The personal representative has a legal duty to act in the best interests of both the deceased and the beneficiaries.
Keeping Up with Legal Updates:
Tax Law Changes: Estate and inheritance tax laws can evolve over time. A periodic review with an attorney ensures your plan remains tax-efficient and minimizes the potential financial burden on your beneficiaries.
New Legal Considerations: Estate planning laws might change, introducing new options or modifying existing ones. A review keeps you informed and allows you to adapt your plan to take advantage of these changes.
Beyond Estate Planning: Essential Documents for Life
Estate planning is crucial, but it’s only part of the picture. Incapacitycan strike at any age due to illness, injury, or accident. To ensure your wishes are respected and your affairs are handled smoothly if you are unable to make decisions yourself, consider these essential documents:
- Health Care Proxy (HCP): This document appoints a trusted individual to make medical decisions on your behalf if you are incapacitated.
- Durable Power of Attorney (DPOA): A DPOA empowers someone you trust to manage your financial affairs, property, and other legal matters if you become incapacitated.
- HIPAA Release: A HIPAA release allows your healthcare providers to share your medical information with your designated representatives as outlined in your HCP.
- Advance Directive: This document outlines your wishes for medical care, such as the use of life support and other life-sustaining treatments.
The Importance of Having These Documents:
- Confidence and Control: Knowing your wishes are documented and a trusted person can act on your behalf empowers you and your loved ones.
- Avoiding Family Strain: Without these documents, your family may be forced into difficult decisions or court battles during a stressful time.
- Ensuring Your Values are Upheld: Clearly documented choices regarding healthcare and finances ensure your values are followed, even if you can’t communicate them yourself.
Don’t Wait for the Unexpected: Plan for Life’s Uncertainties
Incapacity can happen to anyone, at any age. Don’t wait for a crisis to create these essential documents. Talk to an estate planning attorney today to get started. By prioritizing regular updates to beneficiaries, scheduling periodic estate plan reviews, and having these key documents in place, you can ensure your legacy aligns with your evolving wishes and provides security and peace of mind for yourself and your loved ones.
Surprenant & Beneski, PC Disclaimer
While this article offers a general overview, it’s not a substitute for legal advice. Please contact Surprenant & Beneski, PC for a personalized consultation regarding your specific situation.
