The Importance of Keeping Your Estate Plan Up-to-Date

How long has it been since you reviewed your estate planning documents? If you are like most people in Virginia, you probably haven’t reviewed them in at least three years.

If it has been that long, then it may be time to review and update your entire estate plan. It is important to keep your estate plan up-to-date because failing to do so can frustrate your estate planning goals and increase the cost to your estate after you pass away.

How Frequently Should I Update My Estate Plan?

We recommend reviewing and updating your estate planning documents periodically, as changes will likely be needed every three to five years. It is especially important to review your documents at what we call an “inflection point” in your life, such as the death of a loved one or other significant change in family circumstance, like divorce. In addition, there may be new estate planning issues to consider. For instance, if a child, grandchild, or other loved one has become disabled, or suffers from substance abuse issues, you may want to set up a special needs trust to provide for them.

Generally, your estate plan should be reviewed every three to five years, and updated (where necessary) after every major life event in your family, including any birth, death, marriage, divorce, or significant change in finances.

Which Estate Planning Documents Should I Update?

When reviewing and updating your estate plan, it is important to give special attention to the following key documents or provisions:

Your Last Will And Testament (Will)

When reviewing your Will, be sure to consider the executor, i.e. the person responsible for settling your estate. In addition, if you have children under the age of 18, be sure to evaluate the person(s) you have listed as their guardians. A guardian is a person responsible for providing care for your children should something happen to you.

Pour-over Provision

If you have a Revocable Trust, you will also want to look for a Pour-over provision in your Will. A Pour-over provision provides for any property that was not transferred into your Trust during your lifetime, by automatically pouring those assets into your Trust upon your death.

Financial Power of Attorney

When looking over a Power of Attorney for financial purposes, make sure to review who is named as an agent or successor agent. The agent will make financial decisions on your behalf if you are unable.

If you are married, the most common choice of agent is your spouse. If you are not married or reviewing successor agents, it is not uncommon for people to list siblings or parents. Keep in mind, however, that as your parents age, your successor agents may need to be updated.

Advance Medical Directive

When evaluating an Advance Medical Directive, just as it is with a Financial Power of Attorney, it is important to review who you have listed as agents and successor agents. In addition, be sure to consider the Living Will, which is the provision of an Advance Medical Directive that articulates your advance express order to your agents and health care providers to remove life support when certain conditions are met. It is important to think deeply about this provision, and the conditions which could trigger it.

Revocable Living Trust

With a revocable Living Trust, there are several things to consider. Most importantly, you will want to review the person or persons listed as Trustees and Successor Trustees, as they will be responsible for oversight and distributions from the Trust.

You will also want to look at the Beneficiaries of the Trust, including at what age they can receive distributions from the Trust and how much control they have if something were to happen to you. Often, as their children age, parents will wish to adjust the age at which the children can receive distributions from the Trust either up or down depending on the character of their family.

For More Information Contact An Experienced Virginia Estate Planning Attorney

If you have any questions, or would like assistance with reviewing and updating your estate planning documents, please feel free to give us a call at (703) 553-2577 or use the contact form to arrange a consultation with an experienced Virginia estate planning attorney.

The information on this site is for general informational purposes only. The information presented in this site is not legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this site.