ple are often encouraged to get a Will or Powers of Attorney drawn up or to make sure the beneficiary designations on their life insurance policies or investment accounts are accurate. Each of these is very important. However, there is a danger that, once these items are checked off the to-do list, a feeling of lasting satisfaction and safety set in and nothing more is done. This can be a problem.
An estate plan is no different than most other important things in life in that it needs ongoing maintenance — life changes. A person’s estate plan needs to be adjusted accordingly.
1. Illness or Death of a Guardian. A couple may nominate the wife’s parents as the guardians of their children if the couple were to pass away. But what if something happens to her parents? Perhaps one of the parents passes away or maybe both are no longer able to care for the children due to age or illness. The couple needs to update their wills to nominate someone else as the guardian for their children if the wife’s parents are no longer able to help in this way.
2. A Child Develops Special Needs. What if, due to an accident or the progression of a disease, a child becomes eligible for certain government benefits? These benefits are often contingent, at least in part, on the amount of resources owned by the child. If the child has too many assets, he or she may lose the benefits. Therefore, the parents’ estate plan likely needs to be updated to include specialized provisions concerning the child’s inheritance that provide for the child while maintaining his or her own benefits.
3. Deteriorated Relationships. What if a particular relationship deteriorates and a once trusted individual is no longer reliable. A person may have listed her brother as the agent in her Financial Power of Attorney, but, over time, that relationship has frayed. The person needs to update her Financial Power of Attorney to remove her brother and to include someone else who is better suited for the responsibility.
While not an exhaustive list of situations when an estate plan may need to be updated, the above examples are common scenarios where updating is advisable.
Like most important things, estate plans need to be maintained. Please speak with an experienced estate planning attorney regarding any significant life changes that have occurred since putting together your estate plan and discuss what updates may be necessary.