The Importance of Updating Your Estate Plan Regularly

Estate planning is one of the most important steps you can take to ensure your family’s future is secure. An estate plan outlines your wishes for your assets, health care, and dependents after your passing. However, creating an estate plan isn’t a one-time task. Life is constantly changing, and so should your estate plan. Regularly updating your estate plan with the help of a Winston-Salem estate planning attorney is crucial to making sure it still reflects your current wishes, legal requirements, and life circumstances.

If you want to assistance of a trusted estate planning attorney, look no further than the team at Robinson & Lawing, LLP. Contact us online or call (336) 631-8500 to learn more.

What is an Estate Plan?

Before diving into the reasons why you should update your estate plan with the assistance of an estate planning attorney, let’s first understand what it is. An estate plan is a collection of legal documents that detail how your assets will be managed and distributed after you pass away. It also includes instructions for your health care if you become unable to make decisions for yourself.

Common components of an estate plan include:

A Will: This is the document where you specify who will inherit your assets.

A Living Will: This outlines your wishes for medical treatment in case you are unable to communicate them yourself.

Power of Attorney: This designates someone to make financial or health care decisions on your behalf if you become incapacitated.

Trusts: These are legal arrangements that allow you to manage your assets in a way that benefits your heirs, sometimes even before your death.

Why Regular Updates Are Necessary

Now that we understand what an estate plan is, let’s talk about why it’s important to update it regularly.

Life Changes

Life is unpredictable. You might get married, have children, buy a new house, or experience other significant life changes. Each of these events can have a major impact on your estate plan.

For example, if you get married, you might want to add your spouse as a beneficiary. If you have a child, you’ll want to appoint a guardian for them in your will. Failing to update your estate plan to reflect these life changes can lead to complications and unintended consequences down the road.

Changes in Relationships

Relationships change over time. People who were once close to you might no longer be in your life, and new people may have become important. You might want to remove an ex-spouse or estranged relative from your will or trust. Similarly, you might want to add a new friend or partner who has become significant in your life.

If you don’t update your estate plan to reflect these changes, assets might go to people you no longer want involved, leading to family disputes or other issues.

Changes in Assets

As you go through life, your financial situation will likely change. You may acquire new assets, such as property, investments, or valuable personal belongings. On the flip side, you might also sell or lose assets.

Your estate plan should be updated to account for these changes. For example, if you’ve purchased a new home, you’ll want to include it in your will. If you’ve sold a business, you’ll need to remove it from the estate plan.

Keeping your estate plan current with the help of an estate planning attorney ensures that all of your assets are accounted for and distributed according to your wishes.

Changes in Laws

Estate planning laws can change over time, affecting how your estate will be handled. These changes might involve taxes, inheritance laws, or other legal matters. If your estate plan is outdated, it might not comply with current laws, which could create problems for your heirs.

For instance, changes in tax laws might mean that your estate is now subject to higher taxes, reducing the amount your heirs will receive. Regularly updating your estate plan with a lawyer who understands the latest legal changes can help prevent this.

Avoiding Probate Complications

Probate is the legal process through which your estate is settled after you pass away. An outdated estate plan can lead to complications during probate, such as disputes among heirs or difficulties in distributing assets.

Updating your estate plan regularly can help simplify the probate process. This can save your loved ones time, money, and stress during an already difficult period.

Ensuring Your Health Care Wishes are Honored

A living will, and health care power of attorney are key components of an estate plan. These documents outline your wishes for medical care if you become unable to make decisions for yourself.

Medical advancements, changes in your health, or new personal preferences might lead you to change your decisions about end-of-life care. Updating these documents ensures that your current wishes will be honored.

Protecting Minor Children

If you have minor children, your estate plan should include provisions for their care if something happens to you. This includes appointing a guardian and setting up financial arrangements for their well-being.

As your children grow, their needs and your relationships with potential guardians might change. Regular updates to your estate plan can ensure that your children are cared for by the right people and that they receive the financial support they need.

How Often Should You Update Your Estate Plan?

Now that you understand the importance of updating your estate plan, you might wonder how often you should do it. While there’s no one-size-fits-all answer, a good rule of thumb is to review your estate plan every three to five years. However, you should also update it whenever you experience any significant life events, such as:

• Marriage or Divorce
• Birth or Adoption of a Child
• Purchase or Sale of a Major Asset
• Major Health Changes
• Changes in Relationships
• Legal Changes

Regularly checking in on your estate plan can help you catch any necessary updates before they become pressing issues.

Working with an Estate Planning Attorney

Estate planning can be complex, especially as your life and the laws change. Working with an estate planning attorney can help ensure that your plan is up-to-date and legally sound.

A Winston-Salem estate planning attorney can guide you through the process of updating your documents, making sure that your wishes are clearly stated and legally enforceable. They can also help you understand how changes in the law might affect your estate and suggest strategies to protect your assets and your loved ones.

Trusted Estate Planning Attorney in Winston-Salem

Updating your estate plan regularly is essential for ensuring that your wishes are honored and your loved ones are taken care of. Life changes, relationship dynamics shift, and laws evolve, all of which can impact how your estate is managed after you’re gone. By keeping your estate plan current, you can avoid complications, protect your assets, and provide for your family in the way you intend. Call the professionals at Robinson & Lawing, LLP today at (336) 631-8500 to get started.