Back to School: The Perfect Time to Update Your Estate Plan

As the school year approaches, parents are busy getting their children ready for another academic year—buying supplies, setting up schedules, and preparing for the routine ahead. But amidst all the preparations, one life-changing task often gets overlooked: updating your estate plan. Back to school season is an ideal time to review and revise your Will, Trusts, Power of Attorney, and Health Care Directive to ensure that your family's future is secure.

Disclaimer: The information provided is intended for informational purposes only and should not be construed as legal advice.

Why update now?

As time passes, your circumstances change, and your Estate Plan should be just as fluid. Remember your life five or ten years ago? Does your life today look the same? Are you living in the same house? Are all of your family members that were alive then still alive today? Have your investments changed or grown? Updating your estate plan is a key step in protecting your children's future, especially as they grow and their needs evolve. Life moves quickly, and what may have been a comprehensive plan a few years ago might not fully address your family's current situation. Here are some examples:

1.      Protect Your Children's Future: If you have young children, your estate plan needs to reflect your wishes for their care and education. This is particularly important if you've had any major life changes, such as the birth of a new child, a medical diagnosis, a change in marital status, or significant financial shifts. An updated estate plan ensures that your current wishes are clearly documented, providing for your children’s education, care, and overall well-being according to your most up-to-date intentions.

2.      Appoint or Update Guardians: Another critical aspect of updating your estate plan is appointing or revisiting the guardianship of your minor children. If you haven’t yet appointed guardians, now is the time to do so. Even if you have, it’s wise to periodically reassess these decisions. Circumstances change—whether it’s the guardians’ personal situation, your relationship with them, or their ability to fulfill this important role. It’s essential to ensure that the individuals you’ve chosen are still the best fit to care for your children in your absence. By making these updates, you are securing your children's future in the hands of those you trust most.

3.      Adapt to Changes in Assets: Your financial situation may have changed significantly over the past few years. Perhaps you’ve acquired new assets, such as real estate, investments, or a business, or maybe you’ve sold property, significantly invested in your retirement, or made other financial adjustments. All these changes should be reflected in your estate plan. It’s important that your estate plan accurately accounts for your current assets, ensuring they are distributed according to your wishes. Failing to update your estate plan can lead to accidental consequences, such as assets being overlooked, inadvertent taxation, or being passed on to unintended beneficiaries.

4.      Ensure Continuity and Peace of Mind: An up-to-date estate plan is vital for ensuring continuity and peace of mind. As your children head back to school, you can sleep well at night knowing that their future is secure and that you’ve done everything possible to protect them, no matter what happens. This peace of mind comes from knowing that your estate plan reflects your current wishes and that your loved ones will be cared for according to your desires. It also means you’ve taken proactive steps to avoid potential disputes or confusion among family members, which can often arise when an estate plan is outdated or unclear.

5.      Minimize Potential Disputes: Regularly updating your estate plan also minimizes the risk of disputes among family members. As life changes, so do relationships and dynamics. Think about how many of your friends you had ten years ago that are no longer your friends today. By reviewing your estate plan periodically, you reduce the risk of misunderstandings or conflicts about how your assets should be distributed. Clear, current instructions in your estate plan help ensure that your wishes are carried out, without leaving room for ambiguity or legal challenges.

Taking The Next Steps

Now that we’ve identified some key areas of concern, you should start by reviewing your current estate plan and assets. It’s best to start by writing everything down, which may seem daunting, but it is extremely important - so important that we offer a free leaflet on the 10 common mistakes we see in estate planning (and how to avoid them).

Start by looking at your existing legal documents and beneficiary designations to see if the people you have named are still the people that you want to handle your affairs or receive an inheritance from you. Many people become concerned because they originally named their own parents as the guardians of their minor children, but now grandma and grandpa are slowing down and there is a concern that the aging parent will have difficulty caring for the minor child or could pass away while the child is still a minor. Perhaps you originally named your brother as the Executor of your estate but now he is in the military serving a tour of duty overseas. Is he still the best choice to administer your estate?

Once you have reviewed your existing plan, or if you don’t have an estate plan, then it is time to take a look at how your assets are owned and determine your net worth (i.e. all of your assets less all of your liabilities). If an accident were to happen today, do you feel comfortable passing all of that wealth to your children? Are they able to handle that amount of money? Is a significant portion of your wealth held in retirement accounts? If so, then be sure to know that there are relatively new rules regarding how and when those assets can be distributed to your beneficiaries.

When you reach this step of the analysis, you may find yourself with more questions than answers. If so then it’s time to consult with an experienced estate planning attorney, especially if there have been significant changes in your life or assets.

As you prepare for the new school year, take a moment to protect your family’s future by updating your estate plan. Our team at LSS Law is here to guide you through the process, ensuring that your estate plan reflects your current wishes and circumstances. We can provide personalized advice to ensure your estate plan is legally sound and help protect your family when the school year begins.