Setting up an estate plan should be prioritized as you age, grow your family or contract an illness. However, some people take planning very seriously and prepare everything even without these significant life events. But what if you are healthy and years have passed since you set up an estate plan for your loved ones? After all these years, could it be obsolete?
Do estate plans require updating?
Indeed, an estate plan can become ineffective or obsolete in certain circumstances. After years of planning it in advance, you realize you may need to change it. Common reasons why it can happen include:
- Outdated information: Many significant life changes can occur within a few years. If the estate plan does not reflect these changes, such as marriages, divorces, childbirth or financial changes, it may no longer be considered valid.
- Changes in law: Something you plan in advance may be affected by changes in the law, as the state will not approve an estate plan that does not comply with requirements.
- Improper execution: Estate plans are legal documents that need witnesses and legal signatures to be valid. If not executed properly, the court may invalidate them.
- Lacking assets: If the assets included in the estate plan are no longer available or have significantly changed in value, the plan may function differently than instructed.
- No funds in the trust: A plan that includes a trust may be ineffective if there are no available funds.
If you plan your estate administration, you must consider reviewing and updating the contents regularly until such a time that it becomes active.
How often should I review and update my estate plan?
If you are still keen on setting everything up in advance, reviewing and updating the document every two years would prevent it from becoming defunct. A more thorough update every five years would also be advisable. Having the right legal support to get your wishes in order would also benefit you until the time comes.
