When Should an Estate Plan be Updated?
Many people who have an established estate plan do not realize that the document should be reviewed periodically. One of the major misconceptions about an estate plan is that those with little assets have no need for a prior directive in the event of an untimely death. The truth is that everyone should consider the personal need for an estate plan because the documents can contain more than mere property allocation, such as appointment of guardianship of minor children in the event of a death. The best method of accomplishing this legal family protection is by retaining the experienced Philadelphia estate planning attorneys at Pozzuolo Rodden, P.C.
The Importance of Being Prepared
There are few guarantees in life, but one of them is the fact we will eventually die. It is always best to have a recently reviewed estate plan in place to avoid the surprises often experienced by the family during the probate process. An untimely death can leave your family vulnerable in many instances when assets are not properly protected especially tangible items having sentimental value among children. . The concept that only older individuals with significant wealth need an estate plan no longer applies in the contemporary world, and a good plan will include a will and potentially a living trust addressing property distribution.
Life Events Can Matter
An individual needs to update an estate plan is when they are getting married, divorced or remarried.. Sometimes this can be done after the fact, but many very wealthy individuals will address the situation beforehand. Likewise, divorces can impact the need for an estate plan adjustment as well. Additionally, another family event that can warrant reevaluation of an estate plan is the birth of child or the death of family member resulting in personal and/or significant inheritance.
Health and Insurance Changes
Another time that an estate plan should be reviewed is the event of a serious health crisis. Individuals who pass away and have significant personal assets will assuredly face claims from the government for death taxes as well as other creditors especially resulting from the final illness. When health declines or insurance protection changes, it is important to change the estate plan for protecting the family assets.