Why Should one Update Their Virginia Estate Plan?

People send their entire live creating assets but don’t effectively plan how the assets will be passed on to their loved ones after their demise. Trust and estate plans allow one to maintain control over their wealth and assets upon their death or incapacity. Creating and executing trust and will

But your job doesn’t stop at just planning and executing a will trust. Trust and estate attorney suggest that one should keep reviewing and updating their Virginia estate plan. Any major event in your life, like marriage, business, or children, can significantly affect your estate planning.

In this blog, we have listed some reasons you should re-evaluate your estate plan and will.

Marital status:Marriage and divorce can have a direct impact on your estate plan. If you decide to get married after preparing and executing your will, you need to review the documents to incorporate your spouse. Similarly, after divorce, you will have to make sure the assets pass on to other beneficiaries as per the provisions. 

Increase in net worth: A will allows one to administer the estate effectively. However, one may need to make changes to the will if the value of assets changes.  There are various kinds of trusts like revocable, irrevocable, or testament that you can choose to get the maximum advantage of the tax law.

Law changes: Every year, new laws are enacted that directly or indirectly affect our estate plan. Recently, the IRS increased the estate tax exemption by more than twice set in 2018.

Changes in provisions for beneficiaries: estate plan allows one to make provisions for the beneficiaries. However, there are times when one might need to make changes to these provisions. For example, if your children are financially stable, you can consider making an inheritance to your grandchildren.

Similarly, if you have any beneficiaries with excessive spending habits, you might want to include spendthrift provision into the trust. You may wish to remove beneficiaries from the trust who are no longer on good terms with you.

Changes to the executor: executor or administrator is responsible for the execution of the estate plan. However, what does the executor or the trustee you have appointed are no longer able to fulfill the duties? In such a case, you must review your estate plan and make appropriate changes to ensure smooth administration of your trust. Trust litigation lawyers suggest updating will if you have appointed an agent under Virginia’s Uniform Power of Attorney Act.

Time: When it comes to updating and reviewing their estate plan and trust, one should not wait for any reason.  If a substantial time has passed, you should consider going through the estate plan and review the provisions. Going through the documentation will allow you to tweak the estate plan as per the current scenario. Attorneys handling estate plan cases suggest people review their estate plan every three to five years.