By Lane Erickson, Attorney
Everyone should have an Estate Plan in place. Additionally everyone should keep their Estate Plan updated during their lifetime. That seems to be simple common sense but I often have clients ask me from a practical standpoint when they should update their Estate Planning. Here are 5 events during your lifetime that should cause you to update your Estate Planning.
1. A Birth
The birth of a possible heir/beneficiary is the first reason that should cause you to updating your Estate Plan. Directly this could mean the birth of your own child or it could be a grandchild or any other potential beneficiary that you might choose to give a portion of your estate to.
While some states, including Idaho, have statutory provisions to protect children that are omitted from a person’s will, the law is always changing. It is possible that if you fail to name a child born later in your life they may not receive any portion of your estate. This is especially true for grandchildren. There is no statutory protection for them.If you forget about them and do not add them to your will then they are out. So if you create a Last Will and Testament later have a possible heir/beneficiary born, you should update your Estate Plan to make sure that the people you really want to receive your state will actually get it..
2. A Death
The second event that should always cause you to update your Estate Plan is a death. This could be the death of a spouse, or an heir/beneficiary, or of a fiduciary that you named in your Estate Plan, such as your Personal Representative or Executor. This could also include the death of a person you named who holds a Power of Attorney for you either for finances or for healthcare. If someone close to you dies review your Estate Planning documents.
3. A Divorce
It goes without saying that a divorce can cause many changes in your life. If you have your Estate Planning completed and then a divorce occurs, either for yourself or an heir/beneficiary or even for a fiduciary you named you, need to look your Estate Planning over. I’ve seen many instances where a person names their spouse as a beneficiary or fiduciary in their Estate Plan and then a divorce occurs. In this circumstance when an estate plan has not been changed, that divorced spouse is still named and will still have all the rights listed in your Estate Planning. A divorce is always an automatic reason to review your Estate Plan.
4. A Move
Another often-overlooked reason for reviewing or changing your estate plan is when either you or someone else involved in you Estate Plan moves. Most states will honor a Last Will and Testament that was valid in the state where you obtained it. However not all states are the same. If you have moved it is a good reason to review your Estate Plan and make sure that it is still valid.
Additionally, when someone you’ve named in your Last Will and Testament as an heir/beneficiary or as a fiduciary moves that is another reason to review your Estate Plan. For instance, if you gave a Power of Attorney to one of your children to help you with your health care and then they move away, it may be difficult for them to fulfill those responsibilities. If this happens, it may be wise for you to name somebody else with that particular Power of Attorney.
5. The Passage of Time
Finally just the passage of time alone is a reason to look over your Estate Plan. Overtime, circumstances change for all of us. It’s very possible that what you thought was a good Estate Plan 5 years ago may now not look like such a good idea.
Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your personal estate planning needs.