Summer is fading into fall here in Minnesota and that means the industrious squirrels are busy outside our office windows. On a well-worn path, our furry friends race up and down the walkway, their pace slowed only because of the black walnuts shoved into their tiny mouths. They are preparing for the winter to come.
The work of estate planning is about preparation, too. Through the initial consultation and signing of documents, clients prepare. What would happen if I was incapacitated? Who makes decisions for me while I’m in the hospital? Where do I want my assets to go after my death?
The work doesn’t end with the final signing, though.
Our squirrel friends continue to bulk up for the winter, and they do it year after year. Their winter preparations aren’t a “one and done” situation. Neither are estate plans.
While it’s standard practice to review estate planning documents a minimum of every 3-5 years, there are also some life events that necessitate a review and potential update.
- The addition of a new child or grandchild — Anytime a family grows, it’s a good idea to review estate planning documents. Guardians need to be named for minor children, and beneficiaries may need to be updated. So plan that baby shower and then contact an estate planning attorney. It may be time for some updates!
- A child turns 18 — At 18, a child is now considered a legal adult in many ways. While this unfortunately doesn’t mean they automatically start paying their own bills and cleaning up after themselves, it does mean that they can be named as direct beneficiaries and to act in various roles in estate planning documents. It also means parents can no longer automatically make medical, financial, and legal decisions on their child’s behalf, so they might need their own estate planning documents. Additionally, contingencies for a minor may need to be changed at this time.
- A marriage or divorce — This might seem obvious, but just as you update your social media profile from “single” to “married” (or vice versa) changes will need to be made to estate planning documents. Whether you’re adding or removing beneficiaries or executors, these major life events require a review of documents.
- A change in financial circumstances — Hopefully these changes are positive: a recent inheritance, good luck with the lottery, or success with an investment. However, negative financial changes also require an update of documents. Estate plans are directly tied to the size and type of assets, so be sure to check in with an estate planning attorney when facing a change in financial status.
- An illness or disability — Estate planning is often about planning for the worst, and sometimes that includes receiving unexpected bad news. When facing a serious medical condition, estate plans may need to be updated to plan for long-term care costs, making it an appropriate time to review documents.
- A move from one state or country to another — Estate planning laws are often geographically specific, so these moves also require an estate planning review to make sure documents comply with the laws of the new state of residency. If moving to Minnesota, that means you need to start listening to Prince, brush up on your hotdish recipes, and contact Schromen Law!
An estate plan is a living document that evolves as life changes. Regularly reviewing and updating estate planning documents ensures that wishes are properly carried out, minimizes potential conflicts, and provides peace of mind for the planners and their loved ones.
If you haven’t reviewed current estate planning documents in a while or if there have been any of the changes discussed above, now might be the perfect time to schedule a free review with Schromen Law, LLC. Like our busy squirrels, putting in the effort now means you’ll be ready for whatever life throws at you next.
The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Schromen Law, LLC and the reader. The views expressed in this article are not a statement of support or endorsement by Schromen Law, LLC. The information contained herein is not offered as legal or medical advice and should not be construed as legal or medical advice.
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