Keep Your Estate Plan Up-to-Date

By Jenny Ling, Esq.

If you already have an estate plan in place, you are ahead of most Americans.  Experts estimate that between 40-60% of Americans have no estate plan.   An estate plan that is out of date can put you and your family at risk.  You spent the time and effort needed to create an estate plan that will protect your family – make sure it can grow with your family.  You should review your estate plan at least every 3 to 5 years or after a major life change.  What are some of the reasons you might need to update your estate plan?

Reasons to update your Plan

If you have a DIY estate plan.  If you DIY’d your estate plan, it is essential that you have an experienced attorney review it for you.  Legal documents, just like t-shirts, are not one size fits all.

If you are now married.  If you already had an estate plan before you got married, that plan likely names someone else as your beneficiary and as your financial and health care agents.  Now that you are married, you may want to ensure that your spouse is your beneficiary and can make those most important decisions if you are unable.

If you are now divorced.  Be sure to review your documents and also your beneficiary designations. Pursuant to RCW 11.12.015 “If, after making a will, the testator's marriage or domestic partnership is dissolved, invalidated, or terminated, all provisions in the will in favor of or granting any interest or power to the testator's former spouse or former domestic partner are revoked, unless the will expressly provides otherwise.” Your former spouse could also be listed as your financial or health care agent, and you now likely want to update that to reflect someone else.

If you have a new child or grandchild.  Your estate plan was likely written to encompass children not yet born, but your beneficiary distributions might be affected.  It is best to revise your estate plan so the new family members are named and specifically included.  That would avoid potential conflicts and lawsuits.  You will also want to confirm that the guardians for your children make sense with the new addition to your family.  If your child or grandchild has become an adult, it is probably time to revisit your plan.

If you have changes to your beneficiaries.  If any of your beneficiaries have passed before you, you should revise your estate plan so that you can include new beneficiaries or redistribute property among your current beneficiaries.  If any of your beneficiaries have had changes to their care and their needs, you may want to include a way to provide for that care after you are gone.

If your choice of Executor or Trustee is no longer optimal.  Has your estate changed so much that someone else is now a better choice?  If one your executors or trustees have aged, moved or passed away, you’ll want to update your estate plan.

If you have a significant change in your assets.  If you buy or sell a major asset, this could have a significant effect on your estate plan.  If you buy an asset in another state, you would want to ensure that you are not at risk of having a secondary probate opened in that state.

If you open a business.  If you own a business or plan to open one, make sure that you not only develop a business succession plan, but also decide who will own the business after you are gone. 

Is it time for a review of your estate plan?

If you have experienced any of the above changes in your life, it is probably time for a review of your estate plan.  Some changes will not require a total rewrite of your estate plan.  For some changes, a simple amendment will suffice.  If you want peace of mind regarding your estate plan, give our office a call.

Jenny Ling is a partner at the Law Offices of Jenny Ling, PLLC.  She focuses her practices on estate planning, business succession planning, business and bankruptcy.