When Should I Update My Will?
As we all know, whatever we “finish” generally requires some upkeep. The same is true with our estate planning documents. Circumstances, laws, and relationships shift and change and our planning should reflect those realities. So what are key events that might make an update necessary? Here are a few to watch for:
Occasional changes to state and federal tax, trust, and estate laws can have a significant impact on your estate planning documents. Taking time to periodically review your documents with your estate planning attorney can help you know which, if any, of those legal alterations will affect you. Sometimes, some these adjustments can pay big dividends in protecting assets.
Birth of a child or grandchild might lead you to reconsider a guardianship or how you would like your assets distributed. There are many considerations that come as family size and dynamics shift, and taking the time to think strategically through how those changes will be addressed through careful planning will help with family relationships both now and after you are gone.
Divorce of a member of the family will introduce all kinds of wrinkles into the estate process, even it if is not your own. Plan to make changes to the estate prior to the divorce being finalized to minimize complications that might come with such situations as an unforeseen health problem or the necessity for shifting fiduciary responsibilities to a new Executor or Trustee.
Family circumstances change, requiring a review of expectations of who will play what roles. This might be a sudden decline in physical health, a drug or alcohol addiction, or mental health challenge. Perhaps there is someone in the family with special needs, which can be handled through stipulations in a trust. Above all, you want to be sure that you are not jeopardizing access to governmental benefits for that individual. Such scenarios require thoughtful planning to make sure that the needs and wishes of the family will be addressed and carried out.
When you move Out of State, if your will and revocable trusts were executed in accordance with the laws of one state, they are generally valid in other states. However, references to the laws of your previous home state can create complications at the time of administration of the will. Your heirs might have to rely on the laws of another state to establish the validity of your will and trusts, and opinions from attorneys in two separate states may be required. For this reason alone, it usually makes sense to update your estate plan when you move out of state. Add to this the issue of state-level estate taxes and and differing executor qualifications, a qualified attorney can be a helpful resource in sorting out potential problems.
Your chosen Executor or Trustee may no longer be a good choice, requiring a shift in fiduciary responsibility. It may be that their health or mental status has changed, or perhaps the relationship you had with this individual has shifted, making you wonder about their capacity to execute your plan. All the best planning in the world is only as successful as its implementation. If you are having doubts about your wishes being met, move forward on updating your estate plan.
So back to the theme of upkeep. Life will keep moving forward and we do our best when we take time to reconsider the changing needs and circumstances that will affect the future of our families and of ourselves.
The team at Hillsborough Wills & Trusts has the expertise to help you Build Your Circle of Security.