Q How frequently should an estate plan or will be reviewed and updated? Laws change, circumstances change. Also, is a review/update built into the initial cost of preparing the plan? Or can one expect to pay more down the road?
DEB
COKATO, MINN.
A That's a great question. I think many people complete an estate plan and then let it go for several years thinking that they don't need to look at it or think about it again. In reality, you are right that laws change, people change, and circumstances change.
For example, say that you drafted your documents to leave all of your assets outright to your son after both you and your spouse pass away. At that time he was 28 and you felt that he was financially responsible to handle his inheritance appropriately. However, say a year later something happened that caused you to be concerned about his ability to manage those assets on his own.
You may need to update your documents to build in a trust to hold the assets and distribute the funds over a period of time at the ages you think would be appropriate.
Still, it's a good idea to review your estate plan at least annually if there's been a major change in your circumstances or the circumstances of someone involved in your estate plan, or if you move to another state.
Also, remember to review your beneficiary designations and ownership of your assets as they relate to your estate plan. If you need to complete the review with an attorney or make any changes to your documents, then you can expect to pay some attorney fees. Those fees are not typically built into the initial cost of preparing your estate plan.
SARAH ASEBEDO, CFP (25)
Ka-Ching's financial experts at Edina-based Accredited Investors Inc. can be reached at kaching@startribune.com.
