How Often Should You Update Your Florida Estate Plan?

While you should usually update your Florida estate plan every 3-5 years, there are several situations in which you experience significant life changes that require taking another look to be certain it is current regarding your present circumstances. Here are several reasons to update your will and estate plan to be certain it reflects your current sentiments and Avoids the Biggest Estate Planning Mistakes.

Marriage, Divorce or Death

Marriage, divorce, or the death of a partner are some of the most common changes occurring in a person’s life that requires a review of your will or estate plan to reflect these changes going forward.

Changes in Relationship with Beneficiaries

Over time our views and feelings about who we have chosen to pass our wealth onto can change. Either from estrangements in relationships or consideration of the changing special needs of beneficiaries who may need long term medical care. Or a child or grandchild who needs help with educational costs that causes you to adjust your distribution of assets.

Family dynamics can be complicated. Unfortunately, it’s not uncommon for people to arrive at the decision that they do not want to give money to a relative who they feel has developed a drug problem because of fear it will fuel the addiction. These are a few of the many types of changes that can cause us to rethink our previous sentiments and judgements.

Know that simply failing to mention a child who expected to receive an inheritance is not sufficient as it may be challenged in probate as an omission. You must specifically exclude a child not receiving an inheritance in your will to avoid probate challenges.

Death of a beneficiary is another reason to update your will and estate plan and distributions. Careful consideration of these issues can prevent messy feelings or arguments after you pass among the people you care about and hope to help the most.

Death or Changes in Your Executor or Trustee

This may be the result of someone moving away, or you no longer feel you can rely upon to execute your will. Or this is especially true of course regarding the death of the executor or a trustee because of their importance making sure the directives of your will are executed faithfully. You may want to amend your estate plan to include backup executors.

Changes in Wealth

Any significant changes in your financial circumstances - either up or down - can have a major effect on your estate plan. This can impact tax strategies, tax liabilities and distribution plans that should be reviewed.

One way this frequently happens is when you or your spouse receives a major inheritance or gift that has a significant impact on your financial assets. Another is when there are major changes in the value of your investments either up or down.

Purchasing or Selling a Major Asset

If you buy or sell a large asset such as a home or property it can change your overall financial picture requiring another look at cash and tax positions. Acquisition of debt can impact your estate plan’s balance and dedicated resources.

Changes in Your’s or Your Spouse’s Health and Need for Long Term Care Coverage

While people look forward to retirement as a time of travel and pursuing our interests, the fact is none of us are promised tomorrow and our later years frequently turn into managing medical issues. Planning for fragility and long term care costs are an often overlooked expense of aging that none of us can foresee with clarity. We don’t know exactly when these needs will arise, but understand it is part of the aging process and prepare for it.

Changes in State or Federal Tax Law

Tax laws are constantly changing. There can be changes enacted by your own state legislature regarding inheritance taxes or federal tax laws that can require a reexamination of your assumptions regarding tax liabilities and investments.

Crossing State Boundaries

Many estate documents such as Wills, Power of Attorney, Executor or End of Life Directives are very state specific and need to be brought up to date if you are crossing state lines. If you come to Florida for retirement it’s important to remember that unlike most states, there is no Florida State Inheritance Tax.

Changes in Your Career Such as a New Job or the Closer of a Business

If you’ve had a promotion and are ascending to another level of income, or are closing or selling a business you’ve operated for years, these major life changes can require you to take another look at your estate plan to see if it still meets your former assumptions.

The Birth or Adoption of a New Child or Grandchild

Just as with death changing the primary individuals named in your will or estate plan, the birth or adoption of a new child can change what you cover in your documents.

When a Child or a Grandchild Becomes an Adult

At the age of inheritance which in most states is 18 years old changes may occur regarding the former need for a trustee to administer the minor’s inheritance.

Avoiding Probate Issues and Costs

An outdated estate plan, naming assets you no longer own can create confusion and disputes that lead to probate. Your will and estate plan should be up to date to avoid misunderstanding and conflicts for your loved ones.

Updating and Protecting Digital Assets

An older estate plan may not account for your most recent digital assets such as cryptocurrencies, online business accounts, social media and cloud storage. Without clear directions where these accounts reside, and clear login authorization for someone who will need to access and manage them, they may not be able to do for you after you pass.

Gain Peace of Mind

Your estate plan isn’t a “set it and forget it” document. Your will and estate plan evolves and changes as your life evolves.

There is a Chinese saying that “When a wealthy man dies, many men have agendas!” We all know of circumstances where family love and unity have been torn apart by conflict over probate challenges where everyone loses - except the lawyers!

Updating your estate plan protects your loved ones, avoids legal issues, and makes sure your assets are distributed as you intended.