by Anthony KratzIs It Time to Update Your Estate Plan?
Life is constantly changing—and as your life evolves, your estate plan should keep up.
Whether you’re newly married, recently divorced, welcoming a new child, beginning retirement or grieving the loss of a loved one, major life events can have a significant impact on your estate planning needs. These milestones often shift your priorities and relationships, which is why it is important to make sure your estate documents reflect your current wishes and circumstances.
Beyond family changes, financial and geographical shifts also play a big role. Have you moved to a new state? Has your income or overall wealth changed substantially? These types of changes may affect the validity or effectiveness of your current plan. For instance, moving to a new state might mean adding a statutory power of attorney or updating your other documents. A substantial change in your wealth may mean adding advanced provisions to your plan — like those related to generation-skipping transfer taxes.
Even if your situation seems unchanged, it’s wise to review your estate plan about every five years. Laws change, tax rules shift, and your personal goals might evolve. A quick check-in with your estate planning attorney can give you peace of mind and help ensure your current documents continue to serve you and your loved ones as intended.
Key Documents to Review
When reviewing your estate plan, consider looking at the following:
- Last Will and Testament – Does it still reflect your current wishes for asset distribution?
- Revocable Living Trust – Are your trustees, beneficiaries, and instructions up to date?
- Durable Power of Attorney – Are your chosen agent and successor agents still the best people for the job?
- Advanced Healthcare Directive (or Living Will) – Do your documents reflect your current medical wishes and designate the right decision-makers?
- Beneficiary Designations – Have you reviewed retirement accounts, life insurance policies, and payable-on-death (POD) accounts?
Take the Next Step
If it’s been a while since you last updated your estate plan—or if you’ve recently experienced a major life event—now is the perfect time to review your documents. Consult with a qualified estate planning attorney to ensure your plan continues to meet your needs.
by Anthony KratzShould I Choose a Will or a Living Trust?
One of the most frequent questions that I am asked is whether it is better to have a will or a living trust. What are the differences between them and which one is right for you?
While both a will and a living trust are tools for distributing your assets after you pass away, they function differently and have key differences that may affect how your estate is managed.
A will is a legal document that specifies how your assets will be distributed after your death. It also designates a personal representative (sometimes called an executor) to manage your estate. If you have minor children, a will should also nominate a guardian for them. After you pass away, a will must go through probate, which is the court-supervised process that can be time-consuming and add expenses. Additionally, probate is a public process, meaning anyone can access your will, estate inventory, and other documents once they are filed with the courts.
A living trust can serve as a substitute for a will. A trust is a legal arrangement in which you transfer assets to a trustee, who manages those assets for the benefit of your beneficiaries. Often you will serve as your own trustee, and you will also be the primary beneficiary during your lifetime. One of the key advantages of a trust is that it provides a management structure for your assets during your lifetime, so that your selected successor trustee can manage the trust for you, if you are no longer able to manage your financial affairs yourself. After death, the assets held in a trust can pass to your beneficiaries without probate, meaning your estate can be distributed quickly and privately. Trusts can also offer more control over how assets are managed and distributed to your beneficiaries, and they can address things like disability planning or care for minor children.
Which Option Is Best for You?
A will is usually a simpler document and may be a good option for smaller estates or situations where distributions are expected to be straightforward. A trust, though more complex, provides privacy, avoids probate, and offers greater control over your assets during life and after death.
To make an informed decision about your estate plan, it is important to consult with a knowledgeable estate planning attorney who can evaluate your specific needs and guide you in choosing the best option for your situation.
