If there’s one question I hear my clients ask frequently, its: “When should I update my estate plan?” To give you a proper sense of timing, let’s first examine what an estate plan is.
In legal terms, estate planning is the act of arranging for the management of one’s estate at death through the use of wills, trusts, insurance policies, and other devices. In this definition, “estate” refers to all of person’s belongings, including, but not limited to: physical and intangible assets, land and real estate, investments, collectibles, and furnishings. “Management of one’s estate at death” refers to determining how assets will be transferred to beneficiaries when an individual passes away. And “beneficiaries” refers to the people selected to receive assets at death.
Now that we’re established the legal jargon, we can list some of the life events that should motivate you to update your estate plan:
- The birth of a child (first or additional)
- If a beneficiary develops a substance abuse or major credit/financial problem
- If your family and/or beneficiary relationships turn negative
- If a named representative or trustee passes away or becomes incapacitated
- If new state or federal legislation is passed that impacts your plan
- If you come into an unexpected windfall of money
- If it has been more than 5 years since you last reviewed and/or updated your estate planning documents
Looking for more information on our unique approach to estate planning and administration? Click here to visit our Estate Planning & Administration page, or call me, John R. Dresser, directly at (269) 689-8527.