When Should You Update Your Estate Plan?

One of the most common questions we get is, “When should I update my estate plan?” When you hit certain life milestones, or there are major changes in your life, that is the easiest answer to this question.

1. Your minor children are no longer minors. If your kids are over the age you set for them for a minor’s trust, it is time to update your estate plan. We have seen examples of adult children in their 40s being forced to put insurance proceeds into a minor’s trust because the will and beneficiary designations were not updated for decades.
2. Your children are grown, but may not be mature enough to handle receiving funds outright. No one is perfect, and we cannot predict the future. Some people cannot handle financial responsibility as well as others. Or maybe your child has had a Traumatic Brain Injury, or has a gambling or substance abuse addiction. Maybe they are very prone to exploitation and taken advantage of by scams. Updating your estate plan to include a supplemental needs trust or a spendthrift trust can address these issues.
3. You are divorced or widowed. If you are divorced, you will want to ensure that all of your beneficiary designations are updates as soon as possible. For example, you failed to update your life insurance policy and pass away suddenly. Instead of your children receiving the proceeds, your ex-spouse would be the beneficiary. Also, if you have minor children, your children’s other parent if alive, would most likely be the one to have custody going forward. However, they do not have to have access to the funds you leave your children for their benefit. Make sure you have a trustee that can handle administering a minor’s trust on their behalf. If you are widowed, you will need to update your power of attorney forms and beneficiary designations. Most likely your will does not have to be changed if it accounts for one spouse pre-deceasing the other.

If you have any questions or would like someone to review your current estate plan with you, please reach out to admin@saulinolaw.com to make an appointment.