Creating a comprehensive and cohesive estate plan is one of the most valuable gifts you can give to both yourself and to your loved ones. If you have an estate plan in place already, you are ahead of most Americans; however, you are not done yet. In fact, reviewing and revising your existing estate plan is just as important as creating the initial plan because an out of date estate plan can wreak havoc on your estate if something happens to you. The Nashua estate planning attorneys at DeBruyckere Law explain when you should update your estate plan to ensure that you, your assets, and your loved ones are protected.
You should conduct routine reviews of your estate plan at various times over the course of your life just to make sure everything is in place and that no changes are necessary. The time frame between routine reviews is not set in stone; however, most estate planning attorney suggest routine reviews every three to five years until your children have all reached the age of majority. After your children are grown and/or you reach age 50, plan a review every five to eight years until you are comfortably into your retirement years.
Life Events That Call for an Immediate Review
Certain life events should prompt an immediate update to your estate plan. Among those events are:
- Marriage – when you marry, you will likely want to include your new spouse in your estate plan. That may include changing the beneficiary designations on things such as your Will, retirement plans, and life insurance policies as well as changing fiduciary positions within your plan. The marriage of a child is also something that could trigger a review because your son/daughter-in-law could now stand to gain control over the inheritance you plan to leave your child.
- Divorce –one of the most common mistakes people make is forgetting to make changes to their estate plan after a divorce. Failing to update your plan after your divorce could result in an ex-spouse as the beneficiary of your estate assets.
- Birth and death of beneficiaries or fiduciaries — the death of anyone who is part of your estate plan, as a beneficiary or fiduciary, is cause to review your plan. The birth of a child or grandchild should also be specifically noted in your plan to ensure your beneficiaries are properly identified.
- Children reach the age of majority – as the parent of minor children you had to protect your children’s inheritance because they could not inherit directly from your estate; however, once all your children are legal adults, you have the option to gift directly to them.
- Significant change in assets – minor changes should be accounted for in your plan; however, if you buy or sell a business, or valuable asset, you may need to review your estate plan.
- Retirement – when you retire, you may start withdrawing funds from retirement accounts and selling major assets which should warrant a review of your plan. In addition, if you have not yet considered the addition of a Medicaid planning component to your estate plan, you will want to do so to ensure that you qualify if you need to down the road.
- Serious Illness – hopefully, your plan is already prepared to handle your incapacity or even a terminal illness; however, if you are diagnosed with a serious illness, a review of your estate plan is always a good idea.
Contact Nashua Estate Planning Attorneys
If you have additional questions or concerns, please contact the Nashua estate planning attorneys at DeBruyckere Law Offices by calling our New Hampshire office at (603) 894-4141 or our Massachusetts office (978) 969-0331 to learn more or visit our website at https://dadlawoffices.com .
An estate plan that functions as intended will protect your assets and help them grow over the course of your lifetime as well as ensure that your loved ones are provided for in the event of your death or incapacity.
It is always best to work with an experienced estate planning attorney when making changes to your estate plan.
After you enter your retirement years, a review every eight to 10 years should be sufficient unless a life event precipitates a review sooner.