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The risks of failing to update your estate plan

On Behalf of | Apr 17, 2023 | Estate Planning

The importance of regularly updating your estate plans cannot be understated. You never know when they will come into play, and you do not want to have a situation where your estate plans do not reflect your current wishes.

Reviewing your estate plans every couple of years or after major life events like a divorce or the death or birth of a close family member is crucial. Here are some things that could go wrong when you do not keep your estate plans current.

It could create unnecessary conflict among your loved ones

Think of all the confusion you would leave in your wake if you bequeath a portion of your estate to a deceased beneficiary or left out some of your children in a will. 

This is a real possibility when you do not update your estate plans, which may lead to disagreements among your loved ones and increase the risk of a will contest.

Your assets may not be distributed as you would have wished

If you fail to update your estate plans and leave out newly acquired assets in your will, the state’s intestate succession laws will determine how they will be distributed. The outcome may be contrary to your intentions, and little can be done to change this.

Your estate may be subject to unnecessary taxes

Estate tax laws change frequently, and failing to update your estate plans can result in unnecessary taxes being imposed on your estate. By updating your estate plans, you can take advantage of current tax laws and reduce the tax burden on your estate.

You cannot afford any loose ends

Your loved ones will have to deal with the undesirable consequences if you do not regularly update your estate plans. Taking the proper steps now will help protect their interests when you are gone. You will also have peace of mind knowing that your estate plans are current and everything is in place should anything happen.