Estate planning is a near-universal adult responsibility. Most people with children, spouses or valuable property understand that they should have estate plans. However, it is very easy to delay the process of actually drafting documents. Even responsible adults who have very clear expectations for the estate planning process may procrastinate, exposing themselves and their beneficiaries to legal and financial risk.
Those who create estate plans may feel confident that they have protection in an emergency and that their loved ones have access to support after their passing. However, estate plans can rapidly become outdated after their creation, making regular reviews and updates necessary for optimal legal and financial protection.
The risks of outdated documents
Technically, most estate planning documents do not expire due to age. However, as they become increasingly outdated, they are vulnerable to legal challenges after the testator who drafted the documents becomes incapacitated or dies.
If family members can point to the terms included and the date of the document’s creation and make a clear argument that the inclusions in the paperwork do not reflect the true preferences of the testator, the courts may agree to set aside documents intended to prevent litigation and conflict. The older the document is, the greater the risk of it including outdated terms.
The inclusion of deceased or estranged beneficiaries, guardians and personal representatives can raise questions about the validity of the paperwork. Instructions for assets liquidated decades ago or the omission of more recent, valuable assets can also undermine the effectiveness of an estate plan.
When are updates necessary?
It is generally advisable for those thinking about emergency protection or their legacy to review their estate plans every few years. Evaluating existing documents with an estate planning attorney can help people identify when changes in the law may make adjustments to their paperwork necessary.
Any significant changes in circumstances may warrant an immediate revision of existing paperwork. Marriage and divorce often drastically alter estate planning needs. The birth or death of beneficiaries, as well as the acquisition of new assets or the liquidation of major resources, can also make reviews and updates necessary.
Sitting down with an estate planning attorney to assess existing documents every few years can help people maximize their legal protection. Outdated estate planning documents can become a source of conflict and may diminish what beneficiaries inherit by generating probate costs. Making the effort to keep documents accurate and updated can limit estate administration expenses and opportunities for conflict among beneficiaries and other loved ones.