You did your estate plan: You worked out who will make your medical decisions, who gets your stuff, and who will take care of your kids and/or pet if you and your significant other are unable to – you are all set, right? The answer, as in most legal issues, is... it depends. If you made your plan in the last six months and nothing has changed since that time, then yes, as long as you haven't changed your mind, your plan is good to go. However, if it has been a few years, you might want to take another look at your estate plan.
At Varnum, we generally encourage our clients to take a look at their plan if it is more than three years old. The law is always changing, and depending on the size of your estate, that could affect your estate plan. Also, laws change regarding who can be named to certain positions of power over your estate, and what they can and cannot do. Note: the current estate tax law is set to change again in 2013. Another reason you would want to look over your estate plan is if you have had a significant change in your life, or if your life has simply changed over the years.
For example, if you were single when you made your plan, had student loan debt, no children, and a very small estate your plan will need a major overhaul if you are now married with children, have a mortgage in place of the student loans, and a respectable retirement account building. There are certain events that could occur which could affect your estate plan. The main reasons people generally need to update their plans include divorce, changes in the size of the estate, birth of children or grandchildren, or persons named/affected by your estate plan have either died or are no longer someone you want to include in your estate plan.
Finally, pay special attention to those you have named in certain roles in your plan. As stated above, if that person is deceased or incapacitated, you will want to name someone in their place. In reviewing your selections, consider if you are still happy with your selection – do you still think that person would do a good job in the role you have given them? In addition, you should ask those parties if they are still okay with the role they are given. Three years ago your brother may have been fine with agreeing to take in your children if something were to happen to you, but if he now has two kids and a mortgage of his own, he might reconsider. Take some time to review your estate plan – a little bit of your time spent today can make a big difference tomorrow.
(Editor's Note: Attorney Jessica DesNoyers authored this post while working in Varnum's Grand Haven office. Jessica is currently with another firm.)