Yes, absolutely you can, and in fact, it’s quite common and often *necessary* to update your estate plan as life evolves; your initial plan is rarely set in stone, and assuming it is can lead to unintended consequences. Estate planning isn’t a one-time event, it’s an ongoing process that should be revisited periodically, roughly every three to five years, or whenever there’s a significant life change. These changes can include marriage, divorce, the birth or adoption of children or grandchildren, changes in financial circumstances—like a substantial increase or decrease in wealth—or even changes in the laws governing estate and tax matters. Failing to update your plan can render it ineffective or misaligned with your current wishes, potentially leading to probate complications, unintended tax consequences, or the distribution of assets in a way you no longer desire.
What happens if I don’t update my will?
Consider the story of old Man Hemlock, a retired fisherman who drafted his will thirty years ago, naming his eldest son as the sole beneficiary. Over the years, Hemlock remarried, had a daughter, and significantly increased his wealth through a successful seaside restaurant. He *never* updated his will. When he passed, the entire estate—including the restaurant—went to his eldest son, leaving his wife and daughter with nothing. This wasn’t malice, it was simply oversight. According to a recent survey by AARP, approximately 55% of American adults do not have up-to-date estate planning documents, leaving billions of dollars at risk of being distributed according to state law rather than personal wishes. This scenario highlights the critical importance of regular review and updates.
How often should I review my trust?
Trusts, like wills, are also subject to change and require periodic review. A key difference is that trusts are generally more complex and often involve ongoing administration. Changes in tax laws can significantly impact the tax benefits of a trust, and beneficiaries can change their circumstances, requiring adjustments to distribution schedules. I once worked with a young couple who established a trust for their children’s education, naming their parents as trustees. Years later, both parents developed health issues and were no longer capable of managing the trust effectively. This caused considerable delays and legal expenses to appoint a new trustee. Remember, as of 2023, the federal estate tax exemption is over $12.92 million per individual; however, this number is subject to change, emphasizing the need to stay informed and adapt your plan accordingly.
What’s involved in amending a will or trust?
Amending a will or trust is generally straightforward, but it must be done correctly to be legally valid. For a will, you typically execute a codicil – a legal document that adds, modifies, or deletes provisions in the existing will. It must be signed and witnessed just like the original will. For a trust, you execute an amendment to the trust document. It’s crucial to work with an experienced estate planning attorney to ensure the amendment is drafted accurately and complies with all applicable laws. A common mistake is attempting to make changes through handwritten notes or informal agreements, which are often unenforceable. Think of it like building a house; you wouldn’t modify the foundation with popsicle sticks – you’d need a qualified architect and builder.
Can estate planning fix past mistakes?
I had a client, let’s call her Mrs. Gable, who realized, after her husband’s passing, that their original estate plan hadn’t accounted for a significant piece of property they’d acquired years later. Because it wasn’t included in the plan, the property was subject to probate, causing delays and expenses for her family. We were able to implement a strategy using a pour-over will—a will that directs assets to a trust—to ensure the property was eventually incorporated into the estate plan, even after the initial oversight. It wasn’t ideal, as it involved extra legal work and probate costs, but it salvaged the situation. This demonstrates that while mistakes can happen, proactive estate planning can often provide solutions to correct them. Approximately 60% of Americans die without a will, leaving their assets to be distributed according to state intestacy laws, and in many cases, leaving families with unexpected complications. Don’t let that be you!
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning Law, APC, a wills and trust lawyer: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
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About Point Loma Estate Planning:
Secure Your Legacy, Safeguard Your Loved Ones. Point Loma Estate Planning Law, APC.
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Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
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