When to Think About Updating Your Estate Plan

Your estate plan allows you to control who will handle your affairs if you become incapacitated and who will receive your property after your death. A typical estate plan includes a Will, Durable Power of Attorney, Healthcare Power of Attorney, and Living Will and other Advance Directives. Your estate plan might also include a trust.

If you have already prepared your estate plan — congratulations — you are among a minority of Americans. Studies show that more than half of people in the United States do not have a basic estate plan or medical directives. But to keep your estate plan working for you, you should think about updating your estate plan approximately every five years or after a significant life event.

Do You Need to Update Your Estate Plan?

Creating your estate plan is an important first step. But estate planning is a process. As your life circumstances change, your estate plan can become outdated. Updating your estate plan will ensure it remains effective and continues to accurately reflect your wishes. You should review and update your estate plan after major life events or, at a minimum, every five years. Updating your estate plan allows you to make changes as your circumstances evolve and take full advantage of changes to the law.

How Often Should I Update My Estate Plan?

Reviewing and updating your estate plan ensures it continues to accurately reflect your wishes and the current state of the law. We recommend reviewing your estate plan every five years, at a minimum. Major life events may require that you review and update your estate plan sooner.

Divorce

Divorce will have an immediate impact on your estate plan. Under Nevada law, a divorce automatically revokes any property transfer made through a will or trust. If your will or trust left property to your spouse, they will no longer inherit it after a divorce. You should re-evaluate your estate plan and consider naming a new beneficiary. If you still want your ex-spouse to receive your property, you will need to re-draft your will or trust so that the designation remains effective.

A divorce also revokes any nominations you made regarding your estate representative. You may have named an alternate executor in your will, but if you did not, you may not have anyone to serve in that role if you become incapacitated or pass away.

Having a Child

The birth or adoption of a child is a great time to revisit your estate plan. You can update your estate plan to ensure your children are beneficiaries of your estate. You should also include a provision naming a legal guardian of your children if you and their other parent pass away.

Marriage

Marriage is another occasion to revisit your estate plan. Under Nevada law, your spouse is legally entitled to a share of your estate, but you may wish to leave them more. You can also name your spouse as your personal representative and nominate them to act as an agent to make financial and healthcare decisions for you if you cannot make them yourself.

Change in Personal Circumstances

When you created your estate plan, you named guardians and personal representatives to act on your behalf if you became incapacitated or passed away. You may need to update your guardian or personal representative if:

• They predeceased you
• You were recently divorced
• You became estranged from the person previously named or they moved away
• The person you named no longer wishes to serve

Relocation

If you recently relocated to Nevada, even if you created your estate plan in another state, you should review it to ensure it complies with Nevada law.

Changes to Financial Status

If you acquired money or other assets after creating your first estate plan, you should revisit the plan to ensure it continues to accurately reflect your wishes. As long as the assets are in your name, they should pass according to the terms of your will or trust. But you may wish to consider making changes to your estate plan. This can also be a good time to evaluate the tax consequences and retirement planning implications of receiving significant assets or other property.

Contact The Vander Laan Law Firm, LLC to Update Your Estate Plan

The Vander Laan Law Firm, LLC can help you develop your estate plan and ensure it remains up to date. Natalia Vander Laan can review your current estate plan and discuss your options. She will help you understand the benefits of different scenarios and, drawing on her knowledge and experience, craft a customized estate plan to help you plan for your future and pass a legacy on to future generations.

To learn more, contact the Vander Laan Law Firm today to schedule a free consultation to discuss your situation and how Ms. Vander Laan can help.