“An estate plan is not a time capsule to be opened and dissected at some distant point in the future," according recent Forbes article. The article, titled "Why You Should Update Your Estate Plan," explains that many ultra-wealthy individuals have a valid estate plan in place, but have not reviewed and updated their plans after they first signed them. In some instances, an outdated or insufficient estate plan have caused disputes between heirs. Unfortunately, many of these situations are even more tragic because they are usually avoidable, especially when professionals can facilitate difficult conversations.
The original article notes that family members will often shy away from the estate planning process because it typically means some tough discussions. Procrastination is the silent killer of your estate plan. The article also reminds us that this can be a wonderful opportunity for your estate planning attorney to educate family members on the benefits and risks of planning while helping to bridge family divides. In fact, the "key is to evaluate the impact on the estate or wealth transfer plan of all major decisions and life events as elements of a broader generational family wealth strategy." As a result, this can simplify an ongoing process and reduce the possibility of damaging legal disputes on the disposition of family assets in the future.
An estate plan should be reviewed: (i) to be sure assets are properly titled in the name of the trust; (ii) address a meaningful change in your life or family; or (iii) every few years just to make sure you are up-to-date with the changing tax laws. We provide our clients free review every three (3) years to be sure that your estate plan is up to date and effective. Contact us to learn more about estate planning.
Reference: Forbes (July 3, 2014) "Why You Should Update Your Estate Plan"