Updating Your Estate Plan

Life is full of changes, and significant events such as marriages, divorces, births, deaths, and changes in financial circumstances can all impact your estate plan. While a comprehensive estate plan is a snapshot of your life at the time it was created, it is also a living and breathing document. To ensure that your wishes are accurately reflected and that your loved ones are financially protected, it is crucial to review and update your estate plan at regular intervals.

When Should You Update Your Estate Plan?

It’s vital to review your estate plan periodically, or at least every few years. However, there are also certain life events that can prompt an update to your last will and testament, powers of attorney, beneficiary designations, and other estate planning documents.

Here are a few key reasons to consider updating your estate plan:

• Changes in your family dynamics — Births, adoptions, marriages, and divorces can all affect your estate plan. When one of these events occurs, you may wish to add or change a beneficiary.
• A beneficiary passes away — If a beneficiary named in your estate plan passes away, you will need to update your estate plan to redistribute your assets to other beneficiaries.
• Changes in your financial situation — Significant changes in your financial status, such as acquiring assets, selling property, or receiving an inheritance can necessitate updates.
• Changes in the applicable laws — Estate planning and tax laws can change. It is important to ensure your plan remains compliant and effective if new laws become effective.
• Changes to your health — If your health is declining or you have been diagnosed with a serious illness, it’s essential to look over your estate planning documents. Not only should your estate planning documents outline your wishes at the time of your death, but they should address long-term care planning and the appointment of an individual who will manage your personal and financial affairs if you become incapacitated.
• Personal preferences — Your wishes and priorities may evolve over time, and your estate plan should reflect these changes.
• Loans — Loans that you have made to friends, family members or others should be documented in your estate plan.
• Verbal promises or agreements — Verbal agreements and promises that are to occur upon your death, including debt forgiveness or bequests, are not enforceable unless documented in writing.

You can change your estate planning documents at any time, as long as you are of sound mind. We recommend scheduling a review meeting with your estate planning attorney to discuss any changes that may have occurred since you last updated your plan.

How to Update Your Estate Plan

There are several estate planning documents that you should review when it comes time to update your estate plan. Your last will and testament, which is the foundation of your estate plan, can be updated in two different ways. You can either create a new will or amend your existing will with a codicil. While it may be best to execute a new will if major changes must be made, a codicil can address minor changes without needing to rewrite the entire document. Regardless of which method is used, all legal formalities must be followed to ensure the will is valid.

Whether you can update a trust depends upon if it was set up to be revocable or irrevocable. While a revocable trust can be modified at any point during your lifetime, an irrevocable trust typically cannot be altered once it has been created. Other estate planning documents that may need to be changed can include a power of attorney — which can be revoked in writing — and beneficiary designations, which can be updated by contacting the applicable bank, organization, or company.

Contact an Experienced Michigan Estate Planning Attorney

If you’re considering updating your estate plan, it’s best to work with an experienced estate planning attorney who can guide you through the process — and ensure your documents satisfy your wishes. With office locations in East Lansing, Mt. Pleasant, Grand Rapids, and Detroit, The Gallagher Law Firm offers a broad scope of estate planning services to individuals and their families. To learn more about how we can assist you, contact us online, call (517) 853-1515 or email bpg@thegallagherlawfirm.com.