When to Review (or Redo) Your Plan

Your estate plan should be reviewed regularly. For some, every three years is sufficient; more often for others. A review is extremely important if you have major changes in your life, such as starting a business or receiving a big inheritance. Any of the following events should also trigger a review of your plan:

• The birth or adoption of a child. Children born or adopted after you created your estate plan may or may not be included. A review is recommended to ensure your goals will be achieved.
• Significant change in your assets. A significant change in the amount or the character of your assets should prompt you to have your plan reviewed.
• Changes in health of your fiduciaries. If your successor trustee or executor or attorney in fact is older than you or in bad health, consider appointing someone else.
• Changes in your relationships with your fiduciaries. If problems have arisen between you and your successor trustee or executor or the agents named in your durable power of attorney or health-care power of attorney, consider appointing someone else. When needed, these individuals will be in charge of your financial and/or medical decisions. Be sure they have your complete trust and are competent to do the task.
• You've moved. If you have moved to a different state, an attorney licensed in that state should review your estate plan to ensure all documents comply with that state’s laws.
• Your estate consists of mostly illiquid assets, such as real estate or a family business. Whether estate taxes are an issue or not, you should consider a second-to-die life insurance policy to help prevent the forced sale of your assets.
• You've purchased real estate in another state. Having real estate in another state can subject you to a probate proceeding in each state. You should have your plan reviewed to see if this can be avoided. Also, you may have to declare one state or the other as your domicile (the place where you ultimately intend to reside).
• You've remarried. In addition to changing your will and living trust, you may need a prenuptial agreement that identifies who brought what to the marriage and how assets will be distributed upon death or divorce. Consider changing the name of your beneficiary on your will, insurance policies and retirement accounts. (After a divorce, most states automatically revoke provisions in a will applying to a former spouse, but some states revoke the entire will.) Name a new power of attorney and reassess your insurance needs. Also think about establishing trust funds to provide for children from a previous marriage or to ensure that grandchildren will receive their inheritance.
• Loss of a family member. When you lose your spouse, grief can make the simplest decision feel like an overwhelming task. In this situation, err on the side of doing nothing-;at least for a while. Give yourself time to recover before making any major decisions. If you need income from assets immediately, the attorneys at Strauss & Associates are here to help.