Updating Your Estate Plan?

Say you have an estate plan done a long time ago or even just a few years ago. First, congratulations on having your estate plan in place to protect your loved ones. It's a major emotional endeavor that gives you and your family a great peace of mind.

But does it need to be updated?

Yes.

But when? Well, that depends. A few things trigger the need to update your estate plan. They come in two flavors:
1. Changes in the law
2. Changes in your family structure or your wishes

Changes in the law -- for example, a power of attorney for health care has been replaced by an Advance Health Care Directive. The Economic Growth and Tax Relief Reconciliation Act of 2001 caused many legal changes. The federal estate tax exemption is also influx.

Changes in your family structure -- for example, someone is born, dies or gets divorced. Or maybe gets married, becomes disabled, retires and so on.

You get the picture. How do you know if the changes in the law or your personal situation require updating your estate plan? If you worked with an attorney to prepare your plan in the first place, please contact them to schedule a consultation to review your estate plan. You might have to pay a consultation fee. Ask when you schedule the appointment. Bring in all of your papers and your questions... ask away and see what your attorney says. Also, if you take the time to read your estate plan and recognize that people you nominated as successor trustees or named as beneficiaries have died or are no longer part of your life -- this is a very good reason to update your estate plan.

Living Trusts are easily updated by an amendment or a restatement. An amendment just changes, deletes or adds sections to your document. A restatement is a complete re-do if your Living Trust keeping the original effective date as not to disturb already completed asset transfers into your Living Trust.

Durable Powers of Attorney and Advance Health Care Directives should just be completely replaced with your original versions formally revoked where appropriate.

Wills are either completely redone or changed by adding a codicil (the term for amending a Will).

If your documents are not in a binder, they should be organized. Copies should be kept in the binders with originals kept in a safe deposit box or other safe location like a fireproof box at home.

If you make decisions on funeral or burial plans, consider typing up a letter of instruction to include with your documents. If you purchase a plot or other resting place, your deed should be included so your loved ones will have everything in one place.