In Kentucky, estate planning is one of the most important decisions a person can make. While it might not seem that important in the moment, having a will or a trust is a key part of making sure a person is prepared for the future and, more importantly, is addressing their family’s needs.
Even if a person has created an estate plan, that does not necessarily mean it cannot be changed. As people live their lives, they will experience different situations and circumstances that impact them and their family. Once the estate plan is complete, it is wise to revisit it periodically. When dramatic life changes occur, it is even more important to account for it by updating the document.
Wills and trusts can be changed as needed
Since the contents of an estate plan are based on the facts as they stand when it is written, it makes sense to update it when it is necessary. With a will, the general objective is to detail how a person’s property will be distributed when they die. For example, if they own a home, have automobiles, bank accounts, investments, retirement accounts and items of sentimental value, they can dictate who will receive what. The same is true if the person owns a business.
When they experience life changes such as a new marriage, a divorce, having children, experiencing sudden good fortune and having greater assets than they did before, they should look at the document and update it. It is vital to remember that if there are assets that are not mentioned in the will, then it could stoke confusion when the will is read. In some cases, the property could be in dispute with family members fighting over it. Whether a person is younger, middle-aged or older, they should assess the will regularly and change it if the situation calls for it.
If they have a trust, it can also be changed. Trusts can be used for many reasons, but it is frequently a tool to avoid the need to pay estate taxes, to have control over how assets are managed and if a person has a complicated estate. The type of trust a person has dictates whether it can be changed. An irrevocable trust cannot be changed. A revocable trust can be changed while the person creating the trust is alive.
Examples of why to change the trust include no longer wanting the same person to be the trustee or those who were going to live under the rules of the trust grew older or were no longer going to be part of the trust. A revocable trust can and should be checked with changes made if they are appropriate.
Updating an estate plan can be as important as creating one
When a person has created an estate plan, they have taken an integral step in shoring up their loved ones’ future. Still, even if they have a well-crafted and comprehensive document, it likely needs to be changed as time passes. Like every aspect of estate planning, it is wise to be vigilant and know what circumstances warrant an update. When writing or updating a will, experienced guidance can make a major difference.