Planning for the distribution of your estate in Oklahoma should not be a one-time deal. There are many things that your estate can best prepare for by making a regular series of updates. This will keep your estate from being locked into an arrangement that will satisfy no one.
Wills, trusts, and other estate planning documents should be reviewed and updated on a regular basis as well as after major life events. While there is no hard rule about when to update your estate plan, there are some general guidelines that you should follow. Keep reading below to learn more about when specialized Oklahoma City estate planning attorneys suggest you update your estate plan.
Estate plan updates should be timely
Estate planning is more of an art than an exact science. This is why it’s a very good idea to review and update your plan on a regular basis. You can do so on an annual, semi-annual, or quarterly basis. This is the best way to catch and fix any flaws in the plan. The general recommendation is that your estate plan be reviewed at least every 3 to 5 years, but reviewing your plan more frequently can be beneficial.
If certain members of your family that are named in your estate plan pass away, you will have to remove them and make plans to redistribute their share. You will likewise also have to provide for new members as your family grows and changes.
While reviewing your estate plan on a regular basis is a good idea, you should always review or update your plan after a major life event or milestone. Some common milestones that might warrant an estate plan update include:
- Marriage, divorce, or remarriage
- Birth or adoption of a child or grandchild
- Acquisition of large assets, like a home or business
- Significant changes in your financial situation
- Relocation to another state
- Death of a family member
A good estate plan should be flexible enough to change with you as your wishes and situations change. If you simply change your mind about the way that you want your estate administered, then you should use that as an opportunity to make updates to your estate plan.
Estate plan updates benefit your present heirs
You should also update the assets that are placed in your trust. Doing so on a regular basis will ensure that your heirs receive their full value. You don’t want to saddle your heirs with “dead links” to assets that are already drained of their worth. A regular update is a good way to remove assets that have become so devalued that they are more of a liability than a gift.
If you should be divorced, you will need to update your estate plan to reflect on your current marital situation. You want the money and other assets in your plan to be distributed to those who are in your life now and not those who are no longer a part of it.
Which Estate Planning Documents Should I Update?
When you make updates to your estate plan, you want to make updates to all relevant documents. This could include updating things like your:
- Will
- Living trust
- Power of attorney
- Advance health directive
A common mistake that many individuals make is updating one document while forgetting to update others. For instance, you might make updates to your trust but forget that your will also needs updating. Having an experienced estate planning attorney on your side can help ensure that a comprehensive review of your estate plan is performed so that all necessary documents get updated.
How Do I Make Updates to My Estate Plan?
Estate plan updates do not necessarily need to be difficult or complex. The specific method that you use to make updates to your plan usually depends on which documents you need to update. Amendments to your trust can be used for minor updates, while a trust restatement is often used for major overhauls. Codicils, or amendments, may be created for your will, although it is sometimes just as easy to create a brand new will that incorporates the changes.
No matter which method you use for updating your estate plan, you should keep a couple of things in mind. First, make sure that your updates follow all applicable Oklahoma law, such as requirements for:
- Signatures
- Witnesses
- Notarization
Additionally, it is typically a good idea to destroy previous versions of your estate planning documents. Keeping old versions around can potentially cause confusion, and it could lead to legal challenges about the validity of your documents.
If you need to make updates to your estate plan, it is best to work with an experienced estate planning attorney who can guide you through the process. At Helton Law Firm, we can perform a comprehensive review of your estate plan to ensure that it still meets your needs. We can help you make any necessary changes in order to move forward with the confidence that your family and assets will be protected.