Estate planning is not a “set it and forget it” proposition. You should review your plan regularly and update it to reflect changes in your personal or financial circumstances.

Personal and financial shifts

Perhaps your net worth has substantially increased or decreased or you have acquired or disposed of valuable assets. If you got married, you will probably want to add your spouse to your plan. If you got divorced, you will likely want to remove your ex-spouse — as a beneficiary as well as a trustee. Other family changes that may prompt an update include having or adopting a child, becoming a grandparent, the death of a beneficiary or changes in a beneficiary’s financial circumstances.

It is also important to review provisions designating representatives charged with executing your plan. Say, for example, a person you named as executor, trustee, guardian or power of attorney holder has died, or is no longer capable or willing to serve.

Check and revise

Other life changes may make it necessary or desirable to update your plan. Determine whether any of these apply:

• You started a business venture and want to coordinate business succession planning with your estate plan.
• You are concerned about exposure of your wealth to creditors’ claims or lawsuits and wish to increase asset protection.
• Your children have reached adulthood and you wish to name one or more of them as executor or give them powers of attorney.
• A child, grandchild or other family member is or has become disabled and you wish to set up a special needs trust.
• Your child or grandchild divorced and you want to protect your wealth from ex-spouses.
• You moved to a new state with substantially different income or estate taxes.
• Your relationship with a beneficiary has soured and you wish to disinherit him or her.
• You decided to make sizable donations of cash or assets to charity.
• You have accumulated significant digital assets and need to provide for their disposition.
• Your health has declined and you want to change your preferences regarding life-sustaining medical treatment.

You should update financial and health care powers of attorney (or other medical directives), periodically, even if you are not naming a new representative. Some health care providers and financial institutions are reluctant to honor older documents.

Good idea

Even if nothing has changed in your life, it is important to review your estate plan every few years. Check in with your estate planning advisor for help.

For more information, contact Peggy Vyborny at 312.670.7444 or [email protected]. Visit ORBA.com to learn more about our Wealth Management Services.