Yes, You Do and Here’s Why
Can I be frank? Change is the great constant of life, and your estate plan does not update itself. It is not realistic to think that an estate plan drafted several years ago is appropriate to how your life is now. As an example, let me use the “Kendrick family.”
Meet the Kendricks
Bill and Karen Kendrick created and updated their estate plan after the birth of their children about thirty years ago. They further updated their estate plan with a trust about ten years ago that protected themselves, their child, grandchildren, and their loyal dog.
When the Kendrick’s created their trust, they decided that instead of signing up for my Continual Update and Education Program, they would take responsibility of calling for estate plan updates. Not surprisingly, life got busy, changed, and they never called.
Here are some of the ways that their lives have changed in the last ten years.
- Both their kids, Jessica and Steve, graduated college.
- Jessica is married and has two daughters, one of whom may have autism.
- Steve recently got married and his wife is also expecting his firs child.
- Karen’s mother can no longer take care of herself and has moved in with Bill and Karen.
- Bill and Karen bought a vacation home in Arizona.
Do you think their estate plan will still work the way they want it to?
Changes in Your Own Life
The Kendrick’s lives have certainly changed a lot, haven’t they? But their changes may be unique to them, the amount of changes may not be abnormal for many couples. How has your live changed in the last ten years or the last time you updated your estate plan? Do you know whether those changes impact your estate plan and your ability to provide for your family after you are gone?
Have you bought or sold your house? Have you had children or grandchild come into your family? Has a parent become dependent upon you? Has your wealth and investment grown? Has your marriage status changed? How have your children’s lives changed? Is there a need to help with college or similar expenses? Have you started a business? Have you had any health scares?
All these changes impacted your family as they happened, and not updated your estate plan to reflect these changes can impact your family for years after you are gone.