The Importance of Updating Your Estate Plan: How Life Changes Affect Your Assets

Many people do not have an adequate estate plan in place. The AARP cites survey data showing that around 6 in 10 American adults have no will or other estate planning documents. Beyond that, there are other people who are vulnerable because they have an estate plan that is out of date. 

Everyone needs an estate plan. Further, every adult in South Florida should ensure that their plan is properly updated to meet their current needs and goals. Here, our Fort Lauderdale estate planning attorney explains why it is so important to review and revise your estate plan on a regular basis. 

Estate Planning is About Protecting Yourself, Family, Finances, and Future

Why does every adult need a comprehensive estate plan? The key reason is that setting one up is an absolutely vital step to protect your health, safety, personal financial interests, and your family and other close loved ones. Estate planning is designed to provide true peace of mind. A well-designed estate plan—which should be set up by an experienced Florida attorney—will establish clear, legally binding directives for handling your affairs and distributing your estate. Take a proactive approach. 

Your Needs Change: An Estate Plan Should Be Reviewed Regularly 

An estate plan is a set of “living” documents. It is not something that you create one time and let rest for decades until you need it. The reality is that life brings changes. Some of those changes are predictable, and others are wholly unpredictable. As time progresses, your circumstances and priorities can shift. It is normal. To adjust, you should regularly review—and, when appropriate—update your estate plan. Doing so ensures that your current wishes are accurately reflected and that your estate is managed according to your most recent intentions. Regular reviews help identify any areas that may need changes. As a best practice, your estate plan should be reviewed every few years and after major life events. 

Major Life Events that May Require an Update to Your Estate Plan

What are the major life events that could warrant a change to your estate plan? The answer depends on many personal factors, including your goals, your needs, and the current plan you have in place. Some of the most common examples of life events that justify a review of an estate plan in Fort Lauderdale include: 

• Marriage: Marriage is a milestone for many people in Florida. When you get married, it changes the structure of your family. With that in mind, a wedding is often a great time to review—and maybe—modify your estate plan. It is crucial to consider joint ownership of assets and the potential need for a new will or trust. You may also want to update beneficiary designations and/or life insurance policies. 
• Divorce: In Florida, a divorce requires a thorough review of your estate plan. You may want to remove your former spouse from will, a trust, power of attorney (POA), and other legal documents where they may be named. Do not assume that your divorce will automatically update all of your estate planning documents. While Florida has certain protections in place, you need to seek professional guidance. Consult with a Florida estate planning lawyer. 
• Birth of Child: The birth of a child is wonderful. Plan ahead and get your estate plan reviewed during this time. Among other things, you may want to create or update guardianship designations. It is crucial to ensure your child is cared for by the person you trust most in the event of your incapacity or death. 
• Birth of Grandchild: The birth of a grandchild might lead you to update your estate plan to include them in your legacy. You may want to name a grandchild in a will. Some grandparents in Florida may be in a financial position to consider setting up a trust to support their grandchild(ren). 
• Retirement: Retirement brings about significant changes in your financial landscape, prompting a reassessment of your estate plan. This stage often requires adjustments to reflect new income sources and living expenses. For people at or near retirement age, health planning—including long-term care planning—is a vital aspect of overall estate planning. 
• Major Financial Change: Significant financial changes such as receiving an inheritance, experiencing a large increase or decrease in asset value, or selling a business could justify a reevaluation of your estate plan. Be proactive. Reviewing your plan following financial shifts ensures that your estate is managed the right way. 
• Major Health Change: A major health diagnosis or change in your health condition can significantly impact your estate planning needs. A health issue may prompt the need to update your healthcare directive and power of attorney to reflect your current health preferences and designate someone to make decisions for you if you become incapacitated. 

Your Attorney Can Easily Help You Adjust Your Estate Plan 

Too many relatively young people (20s, 30s, and even 40s) put off estate planning because they know that they are likely going to need to make changes in the future. It is a mistaken approach. Unexpected things can happen. Every adult should have an estate plan in place—even if changes are almost certainly going to be required in the future. 

Here is the good news: Modifying an estate plan does not have to be difficult. In fact, it is easy to adjust once you already have the structure of an existing estate plan in place. You can build a relationship with a Fort Lauderdale estate planning attorney. Your lawyer can review any life changes/life events and help you adjust your plan accordingly to meet your new needs and goals. 

Call Our Fort Lauderdale Estate Planning Lawyer Today

At The Law Offices of Odelia Goldberg, our Florida estate planning attorney has the professional experience that you can rely on. If you have any specific questions or concerns about reviewing or revising your estate plan, we are here to help. Contact us today to arrange your completely private initial consultation. From our Fort Lauderdale office, we provide guidance and support to clients in Broward County and all throughout the wider surrounding region in South Florida.