BY: Kenny Brown, Jr, MBA |President of Argent Trust Oklahoma-Tulsa, Chief Operating Officer
& Quin Swiney, J.D. |Assistant Vice President / Trust Administration, Argent Trust Oklahoma
Creating and executing an estate plan is a crucial step in securing the future for those you love and ensuring that your wishes are carried out. However, as we mentioned in our previous post, “An Updated Estate Plan: A Valentine’s Day Gift That Keeps On Giving,” the process doesn’t end once the documents are signed. Just like with a car or a house, your estate plan needs regular maintenance in the form of review so that any necessary changes can be made. Regular reviews and updates are essential to account for normal life changes and ensure your plan remains effective. In this article, we will discuss the key steps to take after executing your estate plan to keep it in order.
Many clients inquire how and when they should update their documents. There are several different ways to ensure your documents keep pace with your changing needs. Here are just a few that we recommend:
1| Major life changes. Everyone experiences a change in circumstances, and not every change necessitates an amendment to your documents; however, a major life change can be a good reminder to review the estate plan you currently have in place and see if any changes are warranted. Some examples of major life changes that may require plan updates would be obvious: Death of a spouse or child, retirement from a job, or addition of family members through marriage, birth or adoption. Some less common life changes might include: personal relationship changes between family members, the sale of a house or family asset, minor children reaching majority, and health and medical changes, all of which might require adjustments to your estate plans.
2| Regularly scheduled reviews. Many clients prefer to have a standing date to review documents for any necessary changes. Some clients keep regular appointments annually or every three to five years to review documents with their attorney or estate planning professional to ensure their documents are continually reassessed. One benefit to this update is that clients can combine a review of documents with reviews of assets, investments, or financial planning so all facets of their estate plan can be reviewed.
3| Changes in laws or taxes. Because the laws affecting estates and tax planning are constantly changing, it is important to stay up to date and informed on anything that may affect your estate or assets. For example, digital assets are becoming more common as more parties earn money or brand recognition online. Even if you do not currently have digital assets, keeping up with current laws will allow you to keep your documents current. While it is always a good idea to educate yourself about anything that might affect the distribution of your estate, it is also helpful to keep in contact with your attorney or drafting professional to ensure that your documents reflect the most recent changes in laws or tax rules.
Ensuring the efficacy of your estate planning documents hinges on regular reviews, regardless of whether updates are made. Without such reviews, these documents risk becoming obsolete, failing to align with your evolving wishes and circumstances. The three guidelines mentioned above offer a glimpse into when such reviews may be warranted. Consistently revisiting your plan and implementing revisions as necessary guarantees its relevance to your present intentions.
If you would like to learn more about estate plans and administration, please get in touch with one of our trust and estate planning advisors. We are ready to help.
