Chances are, the will you draft when you start estate planning won’t be the one that will be submitted to probate. New events may occur in your life over time. For example, the birth or adoption of a child/grandchild, divorce, marriage, the purchase/sale of a property or the death of a beneficiary/executor. Accordingly, you will need to make changes to your estate plan.
Here is why updating your estate planning documents is crucial:
Ensure your documents reflect your current life circumstances
Adding your new child/grandchild/spouse, removing your ex-spouse or replacing your executor ensures your estate planning documents reflect your current life circumstances.
Having a will that includes your ex-spouse or property you no longer own, or excludes a new member of the family or property you sold, can be a problem. Firstly, it does not represent your current wishes. Besides, conflicts may arise if a child discovers they are not named in the will. And if the court determines your will is invalid, New York’s intestacy laws may be used to determine the distribution of your assets, which may not be how you would have wished.
Keep your documents legally compliant
Laws that affect your estate plan can change. A law related to inheritance with a will, inheritance without a will or spousal rights may change. Tax laws that affect estate plans also change. For example, the estate tax exemption amount can be adjusted annually depending on changes in federal tax law.
Stay aware of tax-saving strategies
Updating your estate planning documents when laws change ensures they remain legally compliant and allows you to find ways to benefit from tax-saving strategies.
It’s vital to regularly review your will and estate planning documents. Get more information on how to make changes to your documents.