The Importance of Updating Your Estate Plan: How Life Changes Affect Your Assets

Posted on November 9, 2024 by shieldsandboris

Do you have a will? You are ahead of the majority of people in the estate planning process: According to data from Gallup, less than half of American adults have a valid will. With that being said, your will does not provide adequate protection if it is out-of-date. A will should be updated to adjust to life’s ever-changing circumstances. At The Elder Law Offices of Shields & Boris, we are a top elder law and estate planning law firm. Our team is focused on empowering people and families so that they can best achieve their goals. Here, our Pennsylvania estate planning attorneys explain how keeping your plan up-to-date can protect your rights and your interests.

You Need an Up-to-Date Estate Plan

You are never too young to set up an estate plan. Indeed, all adults in Pennsylvania can benefit from putting a comprehensive estate plan in place. With that being said, an estate plan that you set up in your early 20s may simply no longer be effective by the time you enter your 30s. An estate plan is not something you create once and then forget about. The reality is that life is always full of changes. Your estate plan should reflect them. Keeping your estate plan up-to-date helps to ensure that your rights and interests are protected and your current wishes are fulfilled. Here are three risks to your assets if your estate plan is not updated:

Your assets may be transferred to the appropriate beneficiaries.
Your assets may be exposed to risks—such as long-term care costs or creditor claims.
Your assets may be subject to serious disputes between your loved ones.

Common Examples of Life Changes that Justify a Review of Your Estate Plan

When is it a good time to get your estate plan revised? As a general rule, you should have it reviewed on a periodic basis to confirm that it is still up-to-date. You should also make sure that your estate plan is reviewed—and, if necessary, revised—after any major life changes. Here is an overview of some of the most common examples of life changes that may warrant an update:

Marriage or Divorce: If your marital status changes, your estate plan should probably change along with it. Indeed, getting married or divorced can alter your priorities.
Birth or Adoption of a Child: Growing your family is another time to change your estate plan. When welcoming a new child, you need to be sure you have the right plan in place.
Death of a Beneficiary or Executor: If someone named in your estate plan passes away, you need to update your documents accordingly.
Major Changes in Assets: Buying or selling property, receiving an inheritance, or significant financial gains or losses can affect how you distribute your assets. You need to update your estate plan for your current assets.
Health Concerns: Estate planning is about a lot more than deciding who gets what. A serious illness or disabling medical condition—either for you or a loved one—may prompt you to reconsider your healthcare directives or power of attorney.
Relocation to a New Jurisdiction: An estate plan set up in another state is still generally valid in Pennsylvania. With that being said, a relocation is a good time to review the details.

An Attorney Can Help Easily Adjust Your Estate Plan

Revising your estate plan does not mean that you have to throw it out and start from scratch. Quite the contrary, updating an estate plan does not have to be a daunting task. An experienced Western Pennsylvania estate planning attorney can guide you through the process. Whether you are modifying a will, updating a trust, or changing beneficiary designations, your estate planning lawyer can take the time to understand your life changes and help you make the appropriate revisions.

A Will is Foundational—but Not a Comprehensive Estate Planning Tool

Your will is your core estate planning document. It may need to be updated to adjust for changing circumstances—whether with your assets, your family structure, or your health. At the same time, a will is not a comprehensive estate plan by itself. Your estate plan may also include:

Trusts: A trust may be more effective in handling assets than a will in certain circumstances. Trust can help manage your assets during your lifetime and distribute them after death.
Power of Attorney (POA): A POA is a document that allows someone you trust to make financial decisions on your behalf if you are unable to.
Healthcare Directives: These documents state your wishes for medical care if you cannot communicate them yourself. A living will is a type of health directive.
Beneficiary Designations: Updating beneficiaries on accounts like life insurance and retirement plans ensures they align with your current wishes.
Guardianship Appointments: If you have minor children, naming a guardian is essential. You can use your will to name a guardian.

All documents in your estate plan should be reviewed and (if warranted) revised to account for any significant life changes. A Pennsylvania estate planning lawyer can help you ensure that all documents are up-to-date.

Why Trust Our Pennsylvania Estate Planning Lawyer

Estate planning is complicated. It is normal to have a lot of questions about the structure of your will—especially when it comes time to make changes. At The Elder Law Offices of Shields & Boris, we provide proactive estate planning representation. Adjusting your will does not have to be complicated. When life brings changes, our Pennsylvania estate planning attorneys are standing by, ready to help you determine the best course of action to protect your rights and achieve your goals.

Contact Our Western Pennsylvania Estate Planning Lawyer Today

At The Elder Law Offices of Shields & Boris, our Pennsylvania estate planning attorneys are compassionate, experienced, and solutions-focused advocates for our clients. An out-of-date estate plan may put your assets at serious risk. Give us a call now at (724) 235-7939 or contact us online for your consultation. We provide estate planning services throughout Western Pennsylvania.

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