It can be difficult to figure out how to establish your estate plan. You have many options to choose from, and coming to terms with your mortality can be tough. But once you take the plunge and put forth the effort to develop a strong estate plan, you can breathe a sigh of relief.
Yet, as life changes, so should your estate plan. If you neglect to revisit your estate plan from time-to-time, your assets could end up falling into the wrong hands, and your estate may wind up being subjected to contentious litigation.
It’s important that you recognize when you need to modify your estate plan and how to avoid costly mistakes when doing so. While we hope that this post will be informative in that regard, we want to remind you that this doesn’t constitute legal advice. So, if you have ongoing questions about how to address changes to your estate plan, be sure to discuss them with your attorney.
Commonly made mistakes when modifying an estate plan
There are several events that can justify changing your estate plan. But here are some common mistakes that are made in the modification process that could prove costly when made:
- Forgetting to include newly acquired assets: Many estate plans have a pour-over provision, which leaves any unnamed assets to specific beneficiaries. But if you buy a major asset and want to ensure that it’s left to the individual you intend to inherit it, then you should revisit your estate plan to address that specific asset.
- Neglecting to take into account changed relationships: Relationships with your loved ones can change over time. You or a beneficiary might get divorced, or you may simply have a falling out with someone who is close to you. Either way, when these relationship issues arise, you should take another look at your estate plan to ensure it accurately reflects how you want your assets to be distributed upon your passing.
- Improperly executing new documentation: Whether you’re looking to modify an existing estate planning document or completely revoke it to replace it with a new one, you need to make sure that you’re following the proper legal steps. If you don’t, then you can create a lot of confusion in the asset distribution process, which can lead to extensive litigation. An improperly executed document can also be rendered invalid, which can work against your wishes.
Keep in mind that there are some estate planning vehicles that are a little more difficult to change. An irrevocable trust, for example, is hard to modify unless there’s an agreement amongst named beneficiaries or a court determines that a modification would better meet your goals. This can be a high burden, though, so these estate planning vehicles should be used with care and a proper amount of foresight.
Do you need help meeting your estate planning needs?
If so, then continue reading up on the estate planning and modification processes. By doing so, you’ll have a better understanding of the framework with which you’ll work moving forward. This will give you an idea of how to craft a comprehensive and legally sound estate plan that gets you closer to bringing your vision of the future into reality. That said, we know that the estate planning process can be stressful to navigate. That’s why you may want to seek guidance in reaching your goals and advocating for your interests. Once you’ve done so, then you can rest assured that you’ve done everything possible to protect your estate and the interests of your heirs and beneficiaries.