Since creating your estate plan, have you thought about updating it? If you are like most people, probably not. The temptation to check off the “estate plan” box from the adult to-do list and never look back is a strong one. However, that carefully thought-out plan you created years ago may not meet your current goals or family circumstances. To put things in perspective, consider a family that may sound similar to yours.

Meet the Kendricks

Bill and Karen Kendrick created a will-based estate plan 30 years ago when their daughter, Jessica, was born. They updated it four years later when their son, Steve, came along. Ten years ago, they created a solid trust-based plan and felt confident that their family, their finances, and their beloved dog, Sadie, were fully protected. But over time, they stopped updating the plan.

Here is what has changed in the Kendricks’ lives in the past 10 years:

• Their children, Jessica and Steve, are now adults and college graduates. The Kendricks should review the inheritances planned for them. Since they no longer support Jessica and Steve daily, they may wish to adjust when each child receives their inheritance.
• Jessica is married with two daughters, one of whom may have autism. Because a granddaughter may have special needs, the Kendricks should protect her eligibility for government benefits. An outright inheritance could disqualify her from future assistance.
• Steve is married, and he and his wife are expecting their first child. With a new grandchild coming, the Kendricks should reconsider when and how much each grandchild should receive.
• Bill and Karen also bought an out-of-state vacation home in Florida. They should ensure this property aligns with their estate plan. This could mean transferring it to their trust, or recording a transfer-on-death instrument. Taking these steps now can help loved ones avoid a separate Florida probate later.
• Sadie had a litter of puppies but has since passed away. Bill and Karen kept two of the puppies. If their plan mentions Sadie or any pets, they should review that section carefully. Depending on the wording, they may need to update their plan to include the new puppies’ future care.

Given these changes in their lives, do you think the estate plan the Kendricks updated 10 years ago will still meet their needs and goals today?

Changes in Your Own Life

Like the Kendricks, you have likely experienced many life changes over time. Think about the past few years. Have you moved recently? Do you have more children or grandchildren now? Have you started a business or faced health challenges? Did you buy a new home or property? Do you have new accounts or investments? Are you now caring for a parent, pets, or dependent children? Have you remarried, divorced, or retired? Has someone you loved passed away? Have trusted helpers in your plan moved away or changed relationships with you? Are your children now adults who could serve as trusted helpers? Do you want to help pay for your grandchildren’s college costs?

Much can change in a short amount of time, in both your life and the legal landscape. Your life, finances, and goals likely look very different now. Your estate plan should reflect those changes. Estate planning laws also continue to evolve. We stay informed about these changes to protect our clients effectively. The strategies and tools we use today may be stronger than those available when your plan was first created or last updated.

Is Your Estate Plan Out of Date?

If the Kendricks’ changes sound familiar, it may be time to review your plan. If it has been more than three to five years since your last update, make sure your plan still reflects your goals. Your estate plan should protect the people and things you care about most today. Nielsen Law PLLC Provides family-focused estate and business planning to individuals and families in Austin, Round Rock, Cedar Park, and the Central Texas area. For more information, and to learn about our firm, please contact us to learn how.