How to Tell If Your Estate Plan Is Missing Something Important

Even with a will in place, your estate plan might not be as complete as you think. Life changes, such as getting married, buying property, or watching your family grow, can quickly make once-adequate estate plans outdated or incomplete.

If you don’t have documents like a healthcare power of attorney or a living trust in place, there could be important gaps you’re not aware of. A quick review of your estate planning paperwork can go a long way in making sure everything still reflects your current wishes and needs.

Signs That It’s Time to Revisit Your Plan

You Don’t Have a Power of Attorney in Place

A power of attorney allows someone you trust to make decisions on your behalf if you’re unable to. These documents are often divided into two categories: financial and healthcare. The financial power of attorney gives your designated person the ability to manage money, pay bills, or handle investments, while the healthcare version allows someone to make medical decisions based on your preferences.

Without powers of attorney in place, your loved ones may be left scrambling during a crisis. Courts may need to get involved, and that can delay decisions and add unnecessary stress during already emotional situations.

Your Will Hasn’t Been Updated in Years

If it’s been more than a few years since you last reviewed your will, there’s a good chance it needs updating. A lot can change in five or ten years. Children grow up, family dynamics shift, and financial situations evolve. Your current will may not account for grandchildren, stepchildren, or even charitable organizations you now want to support.

It’s also worth checking who you’ve named as executor. Is that person still the best choice? Are they still willing and able to serve in that role? A quick review every couple of years, or after any major life event, can help keep your plan aligned with your current intentions.

You Don’t Have a Trust and Your Estate Is Growing

You don’t need to be ultra wealthy to benefit from a properly structured trust. A revocable living trust can be a valuable tool for anyone who owns a home, has significant financial assets, or wants to reduce the burden on their loved ones after they pass.

Trusts can help bypass probate, which often leads to fewer court delays and lower costs for your heirs. They also offer more control. For example, you can set rules for how and when beneficiaries receive their inheritance, which is something you can’t do with a basic will. If your estate has grown in recent years, adding a trust might be a smart next step.

Your Beneficiaries Are Out of Date or Missing

Beneficiary designations on retirement accounts, life insurance policies, and bank accounts can override the instructions in your will. That’s why it’s critical to keep them updated. You may need to update your beneficiary designations after a marriage, divorce, the birth of another child, or a death in the family to ensure those changes are reflected on all relevant accounts.

Also consider naming contingent beneficiaries in case your primary choice is unable to inherit. Overlooking this detail can result in assets being passed through probate, even if everything else is in order.

You’ve Moved to a New State

Estate laws affecting probate rules, powers of attorney, and advance healthcare directives can vary from state to state. While most documents created in one state remain valid if you move to another, they may not align with your new state’s specific requirements or best practices.

If you’ve relocated, especially across state lines, it’s worth having your documents reviewed by an estate planning professional familiar with local regulations. They can help ensure your plan is still structured to meet your goals and avoid unnecessary complications.

Your Estate Planning Goals Have Changed

When you first created your estate plan, your primary goal may have been ensuring your spouse or children were provided for. This is particularly common for people who initially draft their plans in their 30s or 40s.

Over the years, a person’s priorities may shift, their family may grow, or they may experience unexpected life changes. Maybe your adult children are now financially independent and can take care of themselves, and you’d prefer your resources go toward charitable causes or protecting assets for your grandkids.

Your documents should reflect your current goals and financial picture, not provide safeguards for contingencies that are no longer relevant. If you’ve built more wealth, your kids have grown up, you’ve separated from your spouse, or you’ve simply rethought how you want your legacy to look, it’s worth reviewing whether a plan you drafted decades ago still supports your goals.

Are You a Phoenix, Peoria, Tempe, or Scottsdale Retiree Who Needs Estate Planning Assistance?

Creating an estate plan isn’t a one-time exercise. It should grow and change with your life. If it’s been years since you looked over your documents, or your financial or family situation has changed since you drafted them, it may be time for a review.

Fullerton Financial Planning offers comprehensive estate planning services for retirees, savers, and families throughout the Valley. Our estate planning professionals can help you identify what’s missing and modify plans based on your current life and preferences. Call us at (623) 974-0300 to schedule a meeting.