Many people make common estate planning mistakes. The most common and dangerous involves indefinite procrastination. Quite a few people put off estate planning and may eventually die or experience a medical emergency without the protection of estate planning documents.
Another common mistake many people make involves drafting estate planning documents and then never thinking about their legacy or future protection again. An estate plan is only as effective as it is accurate. It is therefore of the utmost importance for people to routinely review and update their documents. Failing to do so can lead to major challenges in the future.
Outdated documents are vulnerable to contests
Will contests occur when beneficiaries or family members of the deceased assert that there are problems with the estate planning paperwork. Sometimes, those parties raise claims of undue influence, meaning an outside party may have manipulated the testator.
Challenging outdated documents is also relatively common. In scenarios where estate plans include an ex-spouse or a deceased family member as a beneficiary, people could claim that the documents are not valid because they did not accurately reflect the circumstances of the testator at the time of their death.
Those who routinely update their estate planning paperwork can prevent their families from fighting over their assets or undermining their legacy wishes by claiming that the documents are inaccurate and outdated.
Evolving circumstances change people’s wishes
Divorce, the birth of children and even the acquisition of new assets can significantly shift what someone wants to achieve with an estate plan. It is often beneficial to review estate planning documents after family circumstances change.
Financial changes, such as the choice to start a business or sell a house, can also make estate planning updates necessary. Even changes to a testator’s health could affect what documents they need for their own protection and what terms they want to include in those documents.
Many professionals recommend updating estate plans after substantial changes in personal circumstances. Occasional reviews every few years are also typically a smart decision. Those who are proactive about maintaining up-to-date documents can feel confident that their loved ones have protection in an emergency and that their estate plans can hold up under scrutiny in probate court.
Conducting occasional reviews of existing documents can be as important as establishing an estate plan initially. Adding new documents, removing unnecessary ones and updating the terms included in the paperwork can all be important estate planning modifications for people to make throughout their lives.
