The question of whether to include a review clause tied to major life milestones within an estate plan is a prudent one, and the answer is a resounding yes – with careful consideration. Estate planning isn’t a ‘set it and forget it’ process; life changes dramatically, and a plan created years ago may no longer reflect your current wishes or be optimally structured for the current tax laws. Approximately 60% of Americans don’t have an updated will, leaving their assets subject to potentially lengthy and costly probate processes, or worse, distributed in a way they wouldn’t have intended. Regularly reviewing and updating your estate plan ensures it remains aligned with your evolving circumstances and goals.
What happens if I don’t review my estate plan?
Neglecting to review your estate plan can lead to significant unintended consequences. Imagine Sarah, a vibrant woman in her early 40s, established a trust naming her children as beneficiaries. She envisioned funding their college educations. Years passed, and Sarah remarried, welcoming a stepchild into her life. She never updated her trust. Tragically, when Sarah passed, her initial trust document dictated everything to her biological children, excluding her stepchild entirely. This created a deeply painful legal battle and emotional distress, all stemming from a failure to revisit and revise her plan. This highlights the importance of proactive review; it’s not about *if* things change, but *when* they change, and how prepared you are.
When should I schedule these reviews?
Ideally, schedule a formal review of your estate plan every three to five years, or whenever a significant life event occurs. These events might include marriage, divorce, the birth or adoption of a child, a substantial change in your financial situation (like a significant inheritance or business sale), or a move to a different state. A review clause can be specifically tailored to trigger an automatic review upon the occurrence of such milestones. For example, the clause could state: “This trust shall be reviewed within six months of any beneficiary reaching the age of 25, or upon a material change in federal estate tax laws.” These proactive steps can provide peace of mind, knowing your plan remains current and effective. Consider this; the federal estate tax exemption is currently $13.61 million per individual (in 2024), but this figure is subject to change, potentially impacting your estate’s tax liability.
How can a review clause be structured?
A well-drafted review clause should outline the process for review, including who is responsible (often the trustee or a designated successor trustee), the scope of the review (considering changes in laws, family circumstances, and financial situation), and the frequency of reviews. The clause may also stipulate a mechanism for making amendments or updates to the plan. It’s crucial to work with an experienced estate planning attorney like Steve Bliss to ensure the clause is legally sound and tailored to your specific needs. For instance, the clause could read: “The trustee shall review this trust document every five years, or sooner if necessitated by a material change in the applicable laws or the client’s personal circumstances. Any proposed amendments shall be submitted to the client for approval prior to implementation.” This provides a clear framework for maintaining the plan’s relevance and effectiveness.
What if I put it off and something goes wrong?
Old Man Tiber, a local rancher, was a man of stubborn independence. He drafted his will decades ago, naming his eldest son as the sole beneficiary. Years later, he remarried and had a daughter. He told everyone he’d “get around to” updating his will “eventually”. He never did. When Old Man Tiber passed, his widow and daughter were left with nothing, and a protracted legal battle ensued. It took years and a considerable sum of money to reach a settlement, leaving deep scars and resentment within the family. However, thankfully, a local family, the Millers, understood the value of proactive estate planning. They created a trust, including a review clause tied to their children’s ages and significant life events. When their eldest son decided to pursue a less conventional career path, the Millers were able to revisit their trust and adjust the distribution provisions to provide appropriate support without jeopardizing their overall plan. This demonstrates the power of preparation and foresight, turning potential conflict into a smooth transition for future generations.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How do I store my estate planning documents safely?” Or “Can probate be avoided with a trust?” or “Does a living trust affect my mortgage or homeownership? and even: “What is a bankruptcy trustee and what do they do?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.