If you have put your final wishes in writing, you've probably been told that you should review and modify your inheritance plan (will or living trust) regularly. This is important as it helps ensure your wishes remain relevant to your new circumstances, and it reduce the risk of your plan being interfered with or declared invalid.



When exactly should you consider revising your will or living trust? Below are several life events that show it's time for you to review or modify your inheritance document.



Changes in State or Federal Inheritance and Tax Regulations



Inheritance and tax regulations are constantly evolving and can create situations that necessitate modifying your will or living trust. In late 2017, for example, a new law was signed, and it doubled estate tax exemption from $5.5 million to 11.8 million per individual. It also raised the exemption per married couple to $23.36 million.



If you haven't updated your inheritance document during the last five to ten years, it means that your will doesn't reflect this new tax law.



Relocation to a New Jurisdiction



If you no longer live in the same jurisdiction as you did when you drafted or revised your final wishes, you should talk to estate planning and taxation lawyer in the new jurisdiction about drawing up a new inheritance plan.



If you die or become incapacitated, your estate plan will be administered using the estate planning regulations and processes in your jurisdiction - not the rules and procedures of the area where your estate plan was drafted.



Check to see if the estate planning regulations and processes in your new jurisdiction are different from your former. For example, if your will has only one witness signature and you happen to move to California, the courts may declare it invalid because the estate planning regulations dictate that a legally binding estate plan should have at least two signatures.



Financial Windfalls or Setbacks



If you have experienced financial setbacks or made a promising investment, such as starting a new business or buying a new property, you should alter your final wishes to reflect your current financial situation. Financial alterations, whether big or small, come with tax consequences that could make your old estate plan irrelevant.



Marriage or Divorce



If you recently got married or got into a new relationship, including the name of your partner in your estate plan helps ensure that they would get a share of your assets and properties if you die or become incapacitated. Also, if you got divorced since your last estate plan update, you may need to review the plan and remove your ex-spouse from the list of heirs.



Transition to Parenthood



You may have become a parent since the last time you revised your estate plan. If so, you'll want to create a new estate plan and include the name of your child on the list of recipients. It's also recommended that you name a guardian or guardians who would take care of the child in case something happens to you and your partner.



Similarly, if your child becomes an adult, you may want to update your plan and remove the names of the person or people you had listed as the child's property guardian.



Death or Incapacitation of a Beneficiary



If your estate plan stated that you would leave part of your assets or properties to a beneficiary who has since died, you need to draft a new will and list alternate recipients.



If you're confused about when you should update your will, the tips provided above can help you recognize when the paperwork needs an update. Are you thinking of modifying your will? Don't do it alone. Consult an estate planning lawyer. An estate planning or probate lawyer can guide you on the process of updating your estate plan to ensure it complies with the set inheritance and tax regulations.



If you need more information or are looking for an estate planning or probate lawyer, contact us. Our experienced estate planning attorneys are here to help you.