You worked hard over the years to build wealth, secure your legacy, and protect your family’s financial future. After truly considering what matters most, you create an estate plan to safeguard your wealth and assets. Holding onto this peace of mind, you allow yourself to move on with your life. As time passes, is it wise to leave your plans unchanged?
If your estate planning documents are setup and never updated, there is a significant risk that your original plans can be derailed in court upon your death. The impact of this could be emotionally and financially devastating for the surviving members of your family whom you mean to protect.
How can potential problems with outdated estate plans be avoided? By regularly reviewing and updating these documents, you can make the appropriate and necessary changes to reflect major life events or other critical factors like new laws being enacted that affect your estate.
For example, correcting your beneficiary designations – or otherwise updating a will or a trust that no longer reflects your intentions – can keep your assets from getting stuck in a lengthy probate process. Such updating can also prevent even worse outcomes by keeping the courts, creditors, or relatives from exploiting a mess left behind.
San Diego Estate Planning
San Diego Estate Planning
Dive into the world of estate planning with this quick and straightforward video…
The obvious ones
What are the risks for you and your loved ones if you do not update your estate plan after major life events? Well, it could mean that the financial security of your estate is at risk and your wealth cannot be distributed according to your final wishes after passing.
The solution is to regularly review your estate documents after life events, such as:
- marriage
- divorce
- childbirth
- adoption
- stepchildren
- death of a loved one
Estate planning must be an ongoing process and your documents must be adjusted to encompass major life events and legal updates like the ones above. These life events should trigger an immediate review of your estate plan.
In addition, it is crucial to make necessary updates to your designated beneficiaries, because certain kinds of assets can override your will or trust. For example: if your former spouse is still listed as a beneficiary on your retirement accounts, life insurance, or payable-on-death accounts, then they would get paid first–even if your will specifies otherwise.
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Hidden estate plan issues that many people miss
Furthermore, you must make sure that your will and trust are aligned. When one contradicts the other, it can create confusion and lead to litigation that drains your estate.
When you review your estate plan, check for law changes, as well. Laws regarding estate tax and inheritance evolve and changes unaccounted for might leave your heirs with an unwanted tax obligation or unintended disinheritance.
If working with the original attorney who crafted your estate plan isn’t possible or desired, you may choose a new attorney for an old estate plan. Either way, a full review is required. Either can insert new provisions, clauses, or updates to estate documents. A careful examination ensures compliance with current laws, alignment with your intentions, and exclusion of outdated or conflicting provisions.
Seeking legal guidance in California from an experienced and trusted San Diego asset protection attorney? At Hatley Law Group, we welcome new and existing clients for a comprehensive estate plan review to uncover – and prevent – serious financial harm to your heirs. Each passing day without a thorough review of your documents puts your wealth, family, and legacy at risk. Contact us today!
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TV and Radio stations throughout San Diego rely on Rod’s expertise regarding estate planning.