It can take a lot of courage to face your own mortality and develop a thorough estate plan. As a result, once that plan is in place, you might breathe a sigh of relief. While drafting your initial plan is a major accomplishment, it’s important to realize that the estate planning process continues as life goes on.
This is because as life changes, so should your estate plan. Otherwise, you could wind up in a situation where your assets fall into the wrong hands or your family members are left fighting over key assets, proving costly to them and their well-being, as well as your estate.
Therefore, it’s imperative that you revisit your estate plan periodically to ensure that it still suits your needs. If you’re unsure of what you’re looking for when giving your estate plan another pass, then continue reading to learn which events may trigger estate plan modification.
When should you consider modifying your estate plan?
There are several circumstances that may warrant modification of your existing estate plan. Moving forward, be sure to keep your eyes out for the following situations, which may warrant you making changes to your estate plan:
- Divorces: Your own divorce or the divorce of a named beneficiary should trigger you to revise your estate plan. If you don’t, then your assets could end up in the hands of someone who technically isn’t even a part of your family anymore.
- Deaths: If you don’t change your estate plan after the death of a named heir, then their portion of your estate will flow down their line. You might be okay with this, or it could prove problematic. That’s why you should think about how the death in question affects your estate plan and whether it warrants any modifications.
- Marriages: Marriages might reshape how you want to divide your assets. This could be especially true where the marriage creates a blended family and you’re hesitant to leave your assets in a way that renders them susceptible to the spouse’s children inheriting them. The complexities here justify a close look at your estate plan and consideration of modification.
- Changed relationships: If you have a falling out with a loved one, then you may not want them to inherit from you anymore. But if they’re named in your estate plan, the only way to cut them out is to modify your plan to remove them from your inheritance scheme.
- Acquisition of new assets: Many estate plans utilize a pour-over provision, which essentially addresses how unnamed assets will be distributed upon your passing. But if you acquire a sizeable asset, then you might want to specifically address it in your estate plan. This, of course, will require revisiting your estate plan and making any necessary changes to ensure that the asset in question is disposed of as you see fit.
- Change in priorities: As you age, your priorities in life might change. When that happens, you may want to take another look at your estate plan to ensure that it meets your needs and supports your interests.
Be proactive to ensure your estate plan suits your needs
We know that the estate planning process can seem daunting, and so, too, can estate plan modification. But this is something that you need to stay on top of if you want to ensure that your assets are dealt with according to your wishes. If you have lingering questions about the best way to protect your assets, your interests and your loved ones, then please consider discussing your unique set of circumstances with your estate planning attorney.
