In some situations, outdated estate planning documents can be worse than no will at all. You should review your will, Enduring Power of Attorney, and Personal Directive if your life changes significantly, and at least every three to five years to ensure that it continues to accurately reflect your circumstances, wishes and complies with any legislative changes.
Significant Changes
More frequent review of your estate planning documents may be necessary when there are significant changes in your financial or personal situation. Failing to review your will before or after any marriage or cohabitation may negatively impact your estate planning objectives. In Alberta, your will is NOT immediately revoked when you separate and only certain parts are changed if you get divorced. In addition to marriage and separation, the following are examples of when your estate plan should be reviewed:
If you give birth or adopt,
If an executor or beneficiary predeceases you,
If you have a falling out or change of mind about your substitute decision makers,
If significant assets, like a business, are acquired,
If you have loaned or gifted significant accounts to loved ones,
If significant assets are sold or disposed of,
If you move to another province or if your beneficiaries move to another country, and
If there are changes in legislation.
Addressing Your Legacy
We can help you address these questions:
Do you want to pass down wealth during your lifetime, through your will, or both,
Have you put your needs first,
Have your needs changed from your previous estate plan, and does this necessitate a change in your planning,
What are the most appropriate ways to transfer your wealth based on your needs and goals,
Do you want to make charitable donations during your lifetime or in your will,
How do you want your finances handled if you lose your capacity, and
What do your beneficiaries need to know as it relates to your plan.
Should You Discuss Your Estate Plan With Your Beneficiaries?
Some adult children worry that asking their parents about their wills and estate planning considerations sounds like they’re focused on their potential inheritance.
Conversely some parents worry that discussing their estate planning decisions will create conflict with their children and result in the sharing of financial and other planning information that they aren’t ready to share.
Whatever the concern and discomfort, hard discussions are often better than the fallout from not discussing at all. Conflict, when properly dealt with, often results in growth.
For example, a parent explaining who they have picked as personal representative, may lead to a conversation with adult children that demonstrates that the one they have picked to act alone doesn’t want the burden of acting alone, and the ones who were excluded feel left out or judged and want the opportunity to help their sibling.
We can work with you to determine the amount of information that is appropriate to share in your circumstances with the hope that it can help spark a discussion as to how to logically prepare for the eventuality of the event.
Final Thoughts: Grandma’s Advice
Although the cost of having an estate lawyer prepare and review your estate planning documents is a consideration, it is money well spent because the costs of not doing it correct, or at all, can result in unnecessary expense and conflict for your loved ones.
As our grandmothers were fond of saying, it is “penny wise, pound foolish” to not pay for proper advice and help to keep your estate plan current.
