Minnesota residents who have not looked over their estate plan for a few years should do so. Estate plans should be reviewed about every three years, but there are also certain situations that should require a review even if less time has passed.
For example, an estate plan needs to be reviewed after a person moves to a new state because of the potential for changes in state law that could affect it. Furthermore, people should also make sure they have taken sufficient steps to establish residency in the new state. Families may go through changes such as deaths, births, divorces and marriages, and these could also mean the estate plan needs a revision. People’s assets or liabilities may change over the years as well. They may acquire or sell an asset, and the estate plan may need to reflect that change.
Many people who update other elements of an estate plan still fail to revise beneficiary designations. These are used with 401(k)s, IRAs, life insurance policies and a number of other types of assets, but it can be easy to forget about them. An estate plan may also need an update if people decide they need to choose different people as executor, trustee or for other roles.
People may want to consider other issues as well whether they are creating a plan for the first time or looking over an old one. For example, moving assets into a trust can mean they do not have to pass through probate and may be distributed more quickly to beneficiaries. Trusts may also allow funds to be managed for irresponsible beneficiaries, and they can be used to support loved ones who have special needs without affecting their access to benefits.