There are many reasons why you might need to update your last will and testament or a revocable trust. Perhaps you’ve recently gotten divorced or adopted a new child and need to make appropriate accommodations in your estate plan. No matter the reason prompting your estate plan update, you must be ready to consider any other arrangements or documents that could be impacted by this new change.
Failing to update your other documents.7 means they legally stand as is, possibly giving power or assets to people you don’t want to have it. This is especially true in the case of divorce where your spouse is likely listed by default on all your previous estate planning.
While it is extremely important to update your estate planning tools, such as a will or trust, it should never be at the expense of failing to update other ancillary documents. Life insurance, beneficiary designations and retirement designations are just a few examples. You also should take the time to review your power of attorney, nomination of guardians and health care directives.
They should be periodically reviewed and updated because you may wish to change the people who are affected by the document, such as a person who has been named as a power of attorney agent. You may also wish to redistribute your assets based on changes in your own family dynamics. Anytime that you contemplate making a change to your estate, consult with an experienced and knowledgeable estate planning lawyer. An estate planning lawyer can answer your questions about the process and can help you minimize the possibility of making mistakes within your estate plan updates.