Why You Need to Keep Your Estate Plan Updated

March 22, 2023

As the world and laws continue to change, everyone needs to keep their estate plan up to date. An estate plan is a set of documents, including such documents as a will or trust, that dictates how assets will be distributed upon death and what should happen in the event of incapacity. But it should be more than just documents. It should be a comprehensive, well-thought-out plan about what you want to happen when you can no longer speak for yourself (due to death or incapacity).  An individual's current legal and financial situation, as well as personal relationships, should be considered to create a comprehensive estate plan tailored specifically to their needs.

Ensure Your Wishes are Respected

The primary reason to update an estate plan is to ensure that an individual's wishes are respected upon death. For example, suppose an individual has recently acquired valuable property or has had changes in their family structure (such as marriage or children). In that case, updating the documents that outline how assets should be distributed is important. If the documents are not updated, this could lead to disputes between family members and legal complications when probate occurs. Additionally, if laws change at the state or federal level, those changes need to be incorporated into the existing estate plan to keep it valid and effective.

Ensure Your Loved Ones Are Protected From Tax Implications

Another reason for updating an estate plan is for future tax planning purposes. Without proper planning and asset allocation, taxes can significantly reduce the amount that beneficiaries receive after one's death. Additionally, some states have transfer taxes on certain assets (such as real estate), which must be factored into one’s estate planning decisions. In addition, changes in Federal tax law may affect whether other taxes, such as capital gains tax, apply at the time of death or while transferring assets during life – thus providing additional incentive for individuals to review their plans regularly with their attorneys and other advisors and make necessary updates when necessary.

Ensure Your Medical Decisions Are Handled With Care

Estate planning also encompasses contingency plans in case of incapacity due to illness or injury – commonly referred to as disability planning. This means creating end-of-life documents such as an Advance Health Care Directive, which lists specific instructions about medical treatments that should be administered if certain conditions arise – such as if a person suffers from dementia or a traumatic brain injury and can no longer make decisions on their own behalf. This planning can provide peace of mind knowing that an individual’s wishes will be respected even if they cannot make decisions themselves due to illness or injury.

Ensure You Leave a Legacy For Your Loved Ones

Finally, an updated estate plan allows people to express gratitude for those who have helped them over the years – whether it be through providing advice on financial matters or being there simply by offering emotional support during difficult times – by including them in a legacy interview with our firm. Specific instructions can also be included in your plan regarding how charitable donations should be handled after death – enabling individuals who wish to donate part of their wealth to leave behind a lasting legacy that furthers causes they believe in long after they pass away.

Keep Your Estate Plan Up-To-Date

Having an up-to-date estate plan helps ensure that your wishes are respected upon incapacity or death; protects you from unnecessary taxes; helps with disability planning; and allows you the chance to express appreciation towards those who have had a positive impact on your life while still alive.

Estate plans should consider current circumstances and anticipate future events to avoid any potential problems. As your Personal Family Lawyer®, we hold regular reviews of your estate plan. Contact us today with your questions about your current plan and if you need an update.


This article is a service of the Law Office of Debra M. Garcia, Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

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