A Minneapolis Estate Planning and Probate Lawyer Continues to Stress the Importance of Reviewing and Updating Your Estate Plan
When you buy a new car, everything works perfectly. (At least, you hope it does.) But then in 3,000 miles, it’s time for an oil change. Also, you must keep your eye on the level of coolant in the radiator, your transmission fluid, and your power steering fluid. You must make sure your alternator works to keep the battery charged.
What happens if you don’t maintain your car? Your engine could burn up. Your transmission could fail. Your car could overheat. Your battery could go dead. All of which mean you’re stuck on the side of the road trying to hitchhike to the nearest town.
Your estate plan is like your car. When you set it up, everything is current and accurate. But you need to keep your eye on your assets, insurance, Powers of Attorney, gifting program, distribution plan, successor trustees, beneficiaries, and so much more. That’s why it’s important that you meet with your estate planning attorney every few years.
You wouldn’t think of going on a long trip without making sure that your car was in tip-top shape. Yet every day, people embark on the long trip we call life. And the problem with our “life trip” is that we’re never sure when that trip might end. It’s a good idea to review your estate plan with your lawyer every few years to see if changes in your family’s circumstances need to be reflected in your estate plan.
For example: You should review your estate plan with your estate planning attorney any time (1) you get married, (2) you go through a break up or divorce, (3) your partner/spouse dies or becomes incapacitated, (4) your health changes, (5) you have or adopt a child, (6) your children marry or divorce, (7) a potential problem arises with a beneficiary, (8) the value of your assets changes, (9) your employment changes, (10) your business interests change, (11) you retire, (12) you acquire property in another state, (13) you move to a different state, or (14) something happens to a person named in your estate plan that could affect your relationship or the duties they are to perform on your behalf.
But wait. Is your estate plan really like your car? It’s more accurate to say it’s like a fire engine — ready to handle any emergency at a moment’s notice. When your spouse has a heart attack, you want the paramedics — right now! You don’t want to call 9-1-1 and have the dispatcher explain to you that the fire truck has a dead battery. Or a flat tire.
It would be ridiculous to buy a new fire engine, back it into the fire station where it waits for the next emergency, and then not have a mechanic check under the hood for a year. Do you know how many things can go wrong with a fire truck’s engine if it goes without service for a year?
Yet that’s exactly what people do with their estate plans. They invest hard-earned money to set up their plans. Then they put their plans in a drawer or safe deposit box where they gather dust for 2 years, 5 years, even 10 years — often without updating the plan even once!
And then, when these people have an emergency, do you know what happens? They dig out their paper-work only to learn that their plan no longer works. You see, it was custom designed to fit their specific needs 5 years ago. But now their