Why Should I Update My Estate Plan?

As a responsible individual, you have already established an estate plan, a wise decision to protect your assets and loved ones. However, changes in your life and the law can impact the effectiveness of your existing estate plan. At AWA Law Firm, we recommend reviewing your estate documents, particularly if they were created more than five years ago. Consider the following factors to determine if an update is necessary:

1. Evolving Estate Tax Laws: The federal estate tax exemption has increased significantly, from $675,000 in 2001 to $12.92 million in 2023, which may render some of the tax planning in your current estate plan obsolete and potentially burdensome.
2. Relationship Dynamics: Life brings changes, and if your relationship with any successor trustees or beneficiaries has deteriorated, it may be time to revise your appointments and beneficiary designations to align with your current wishes.
3. Beneficiary Circumstances: If your beneficiaries are facing personal challenges such as financial instability, substance dependency, or disability—particularly if they receive government benefits—your estate plan may need adjustments to ensure your assets provide the intended support without adverse effects.
4. Divorce or Separation: A change in marital status is a critical event that necessitates a thorough revision of your estate plan. Post-divorce, you’ll want to ensure that your assets are managed and distributed according to your current preferences, which can also mitigate the risk of probate issues should you pass away.

Estate planning is not a one-time task but an ongoing process that must reflect your current situation and the latest laws. Let AWA Law Firm guide you through updating your estate plan to ensure that it continues to serve its purpose effectively.