Many people fail to realize that they can – and often should – make changes to their estate plans. Neglecting to update an estate plan can make it harder for people to settle the deceased’s estate, often leading to disputes between beneficiaries and family members.
It is often recommended that estate plans are changed every three to five years. But people may also want to consider making changes when they experience a major life event. There are a few common reasons why people should consider updating their estate plans. Here are some possible changes to make to an estate plan:
1. Beneficiary changes
There are many reasons why a person would need to update their list of beneficiaries in their estate plan. For starters, a person may have added assets to their estate, which can be distributed to existing beneficiaries – one of the most common changes to estate plans.
However, a beneficiary could have passed away. Or, the beneficiary and testator may have had a falling out. Either of these events may mean that a testator needs to remove a beneficiary from their estate plan. Alternatively, a testator may have recently had a child or grandchild, who could be included in the estate plan as future beneficiaries.
2. Asset protection
As people build their estate, there may be more reasons to protect their assets. There are several asset protection options depending on how testators want their assets handled. For example, a testator may consider making a succession plan if they recently started a business. Alternatively, a testator could add a trust to their estate plan to control how assets are distributed.
3. Medical care decisions
As people grow old, they often develop serious medical conditions. A testator may consider adding a living will or power of attorney to their estate plan. A living will and power of attorney both can help control and manage a testator’s future health if they can no longer care for themself.
Legal guidance can help people review their estate plans and strategize changes.