Although estate planning documents never really expire, they can become obsolete over time as circumstances change. What follows are some of the top reasons to update your will or trust:
Marriage, Re-marriage And Divorce
Congratulations on your recent nuptials! Take this time to positively define how your assets will pass to your spouse upon your death. There are numerous tax planning opportunities for married couples, so consult with an estate planning professional to ensure you are leaving a legacy in the most tax-conscious way possible.
If your marriage has recently ended, you should review your prior documents to determine whether your ex-partner was named as a beneficiary or fiduciary. Now might be the time to re-define the “objects of your bounty.” Whatever the case may be, make sure to state your wishes affirmatively, because in many states, divorce can automatically change your will or trust.
Having/Adopting A Child
If you’ve had or adopted a child since your estate plan was first written, you should revise your documents to ensure your child is considered. If your child is still a minor, you need to think about who will serve as their legal guardian. It is important to review this nomination every few years to ensure the person you named is still appropriate as your child grows up.
Changes In The Lives Of Your Fiduciaries And Beneficiaries
Revisit the list of your named fiduciaries and beneficiaries often. Consider whether they are still of sound mind and/or capable of serving in the role you have designated. Do they still have the energy required to take on the role? It is always best to name the right person for the right job!
This may also be a good time to revisit your list of named beneficiaries. Perhaps you would like to leave bequests to different people, your philanthropic interests have shifted, or certain beneficiaries no longer “need” your support. As your life changes over time, so should your estate planning documents.
Change Of Location
Maybe you’ve moved to another state since the execution of your will or trust. State laws vary, and it is important to ensure that your estate planning documents still make sense. A change in “domicile” can also result in significant income tax benefits/detriments. If you are lucky enough to spend significant time in more than one state, ask an estate planning professional for advice about whether or not to change your domicile.
Changes In Tax Laws
The constant change in state and federal tax laws are the most important factors that will affect your estate plan. It is paramount that you remain informed of these changes and consult an attorney who specializes in wills and estate planning to remain ahead of the curve.
Christelle J. Jean-Felix is an associate at Boston law firm Rackemann, Sawyer & Brewster, uniquely serving in two departments: family law and trusts and estates. Heidi A. Seely is a trusts and estate lawyer at Rackemann, representing families and individuals in estate planning, estate administration, tax planning, trust administration and other trusts and estate needs.
