You may have gotten an estate plan done years ago and are wondering if your estate plan is still valid. The answer in most cases is yes, the estate plan is still valid, but your old estate plan may not reflect your current situation and estate planning goals. If you have not updated your estate plan recently or do not have one at all, our Southfield, MI probate lawyer can help you do this.
Here are some common reasons that people need to update their estate plans.
The first reason one may need to update their estate plan is changes in your family. Since your estate plan was executed, many changes may have occurred within your family that require an update in order to incorporate your new family dynamics, such as:
- Marriage, divorce, separation, or death of a spouse;
- Birth, adoption, death, or estrangement of children, grandchildren, or other people that are in your estate planning documents; and
- Children, grandchildren, or other beneficiaries becoming adults.
Another reason to update your estate plan is because of changes in the size of your estate. Since your estate plan was implemented, you may have purchased new property, started or sold a business, or acquired more wealth. All of these items can necessitate changes in your estate plan to accommodate your current financial situation.
A third reason to change your estate plan is because you change your mind about certain provisions in your current estate planning documents. Perhaps you have decided that you no longer wish to leave someone a portion of your estate or that you do not want particular instructions you left to your Patient Advocate in your Healthcare Power of Attorney to be followed anymore. An update to your estate plan is needed to accommodate your new wishes.
A particularly important reason to update your estate plan is when you move. The act of purchasing a new home, even if it is in the same neighborhood as your old home, can have estate planning consequences. This is because real property is specifically transferred by deed. If the deed executed when you purchased the new property is not made with estate planning in mind this can be a serious issue and can force a probate proceeding if not rectified.
Additionally, every state and country has different laws regarding estate planning. Therefore, when you move it is a good idea to have an estate planning attorney in your area review your documents to let you know if changes are necessary to make your estate plan compliant with the laws of your new home.
Lastly, changes to estate planning may also be necessary to qualify for benefits from Medicaid or the Department of Veterans Affairs (VA). The types of trusts commonly used in estate planning do not typically meet the requirements Medicaid or the VA require to qualify an applicant for benefits. Unfortunately, quite a bit of advanced planning is typically needed for setting up these kinds of trusts due to the applicable look-back periods Medicaid and the VA have in place to receive benefits, but this can be accomplished with advanced planning.
As you can see, there are many reasons that a person may need to make changes to their estate planning documents. If any of these circumstances apply to you, or you perhaps just are thinking about making changes to your estate plan, please contact Gudeman & Associates, P.C. today to schedule your no obligation consultation.
