When you create an estate plan, it’s important to realize that you that you need to revise it over time to keep it up to date. Failing to do so can complicate matters for those you leave behind.
Some of these revisions are easier to remember than others. If you have a child after you create your estate plan, for example, you’ll likely remember to update it to appoint someone to be their guardian if you pass away while they’re young. Yet some things are easier to overlook
The death of someone named in your estate plan
When creating your plan, you’ll name people as beneficiaries, executor, trustee (if you create a trust) and power of attorney, among other things.
What if they die before you? If you name at least one backup or contingency person option, you don’t need to update your plan soon after they pass away. If you haven’t done that before you pass away, however, complications can arise when you do.
Changes in a chosen designated beneficiary
Certain accounts allow you to designate a beneficiary directly with the financial institution or other company that holds the account. Many people put their current partner or spouse, and then life takes over and they forget they even have the account. Since these beneficiary designations override anything mention you make of these account beneficiaries in your will, it is crucial to amend the account designation with the institution that holds the account if you want to choose to change the beneficiaries for any reason.
Having experienced estate planning guidance when significant life changes occur can help you keep your plan current and valid.