But, if you’re ahead of your peers in this regard, as the calendar turns to a new year, it's an ideal time to review your existing estate plan. Making this effort can help to ensure that your current wishes and estate planning documentation align.
Your asset distribution may have been perfect when you first drafted your estate plan, but over time, your financial situation could have changed. Review your assets, including investments, property and personal possessions, to ensure they align with your current wishes. If there have been significant changes in your asset value or type, adjustments might be necessary.
Life events such as marriages, divorces, births and deaths can alter your relationships and priorities. Ensure that your beneficiary designations on retirement accounts, life insurance policies and your will and/or trust(s) reflect your current intentions. Neglecting this can lead to unintended beneficiaries receiving assets and intended beneficiaries receiving nothing.
You’ll additionally want to reassess the individuals you’ve designated as executors, trustees or powers of attorney. Are they still the best choices to manage your affairs? Changes in relationships, health or location of these individuals could impact their ability to serve effectively. Similarly, make sure that your healthcare directives and living will reflect your current health status and end-of-life wishes, as your needs may have changed since your last review.
Reviewing your estate plan as the new year begins is more than a routine checkup; it's a way to better ensure that your personal and financial wishes are accurately documented and legally sound. It may not be the most fun way to start out the new year, but it’s a responsible and potentially consequential approach that could significantly impact your interests down the line.
]]>Sometimes, you may only need to make simple changes, which you can probably do by adding a codicil or amendment to your will or trust. If you need major changes, you may need new replacement documents, but what happens to your old ones?
Assuming you execute it correctly under Florida wills laws (properly witnessed, etc.), creating a new will makes older versions invalid. However, it may be wise to ensure the document no longer exists. Deceased celebrities are not the only ones at risk of will contests if they leave multiple estate planning documents behind.
Destroying an old will could help to prevent legal challenges from well-meaning loved ones concerned that your new will may not reflect your wishes. Burn or thoroughly shred your old will documents every time you replace them, and make sure you have a couple of witnesses present during their destruction.
As mentioned, you may not need to create a new trust to alter the provisions of an older one. Your legal representative can probably help you draft a trust restatement or amendment that meets your needs.
Still, there is a chance that you may benefit from scrapping the original trust and starting over. You may want to destroy your old trust as you would an old will, but consider seeking a legal opinion first. It can help you identify any risks associated with the trust’s destruction.
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