An individual who creates an estate plan relies on their documents when they experience an incapacitating emergency. Their spouse, children and other dependent family members may rely on the estate plan for access to property or crucial forms of support after someone dies.
The decision to create an estate plan puts someone in a better position than the average person. A large percentage of adults do not currently have any estate plan on record. However, simply drafting documents does not guarantee adequate protection for the person planning or their loved ones.
Estate plans may not instantly offer proper support after personal circumstances evolve. Testators may need to update their estate planning documents to ensure they properly protect everyone. The following are some of the reasons people may choose to review and change their estate plans.
The acquisition or sale of personal property
The terms of an estate plan often depend on someone’s personal holdings. Someone with millions of dollars in property may need to plan to avoid estate taxes. They may also need to make specific arrangements for their most valuable resources. When someone sells their business or buys a vacation home, that change may require an estate planning update. Testators generally want to remove language addressing assets they no longer own and add new terms addressing assets not previously included in their documents.
A change in family relationships
Perhaps someone with three children learns that their spouse is about to have a change of life baby. The addition of a new family member often necessitates an update to existing estate plans. Someone starting a blended family may need to update their documents to include their spouse and stepchildren in their estate plan. In a tragic scenario where someone loses a family member through death or divorce, they likely need to update their estate planning documents. Not only do they want to remove beneficiaries who should not or cannot inherit from their estate, but they may need to choose other people to hold positions of authority.
A shift in personal values
Many experiences can change someone’s wishes about their legacy. A terminal condition might drastically alter the kind of medical support someone wants to receive in an emergency. Estrangement from a child or grandchild may force someone to reconsider who inherits property from their estate or holds the authority if they become incapacitated. Anytime there has been a profound change in someone’s life, what they need or want from their estate plan may change as well.
It can be easy to overlook a need to engage in estate planning when dealing with major personal and family adjustments. However, revising estate planning documents is a necessary move for people in a variety of challenging situations. Those who take the time to update their documents can enjoy well-founded peace of mind as they age, and can better support their loved ones after they die.