Many people view creating an estate plan as a one-time task. You meet with an attorney, sign the documents, and file them away, assuming your work is done. However, an estate plan is not a “set it and forget it” document. Life is constantly changing, and your plan needs to adapt to reflect your current reality. An outdated plan can lead to unintended consequences, family disputes, and significant legal hurdles for your loved ones.
To explore this crucial topic, we recently welcomed Marie Elena Puma, an experienced attorney from the Russo Law Group, onto our podcast. She shared invaluable insights into why keeping your estate plan current is essential and highlighted the specific life events that should trigger an immediate review. This post will recap the expert advice she provided, helping you ensure your plan works for you and your family when it matters most.
The Biggest Risk of an Outdated Plan
What exactly is an estate plan? In simple terms, it’s a collection of legal documents that outlines your wishes for the management and distribution of your assets after your death or if you become incapacitated. This includes documents like a will, trusts, a power of attorney, and a healthcare proxy.
During our conversation, Marie Elena emphasized that the single biggest risk of an outdated plan is that it may no longer reflect your wishes. A plan drafted a decade ago might name an ex-spouse as a beneficiary, leave assets to someone who has since passed away, or fail to include new children or grandchildren. This can create confusion and conflict, forcing your family into costly, emotionally draining legal battles to resolve the issue.
Key Triggers for an Estate Plan Update
So, when should you pull that plan out of the drawer and schedule a meeting with your attorney? Marie Elena identified several key triggers that demand a review.
1. Changes in Marital Status
2. Growth of Your Family
3. Significant Financial Shifts
4. Changes in Laws
5. Personal and Relationship Changes
Modernizing Your Estate Plan
Marie Elena also shed light on an often-overlooked area: digital assets. In today’s world, our lives are intertwined with online accounts, from social media and email to cryptocurrency and digital banking. Your estate plan should include provisions that grant your executor access to and authority over these digital assets. Without it, your family may be unable to close accounts or retrieve valuable or sentimental digital property.
Take Action Today
According to Marie Elena Puma, a good rule of thumb is to review your estate plan with an attorney every 3 to 5 years, or immediately after any major life event. Don’t wait for a crisis to discover your plan is out of date. Proactively managing your estate plan provides peace of mind and is one of the most important things you can do for your loved ones.
Contact Marie Elena Puma at the Russo Law Group at http://www.VJRussoLaw.com.
The Russo Law Group and PlayTri sponsor this show. We thank them for their support.
