Should I have my estate plan reviewed?
As an unprecedented year comes to a close, I want to highlight the importance of having your estate plan reviewed. Whether you recently moved to Arkansas or you have always called Arkansas home, it is a good idea to have your estate plan reviewed by an attorney to ensure that it is current and still fulfills your estate planning goals. If you have not set up an estate plan, now is the time to do it.
The complications of moving from state to state are not difficult; however, there are still legal issues to be concerned with. While your Last Will and Testament, Durable Power of Attorney, and medical directives will most likely be effective in Arkansas, your Durable Power of Attorney and medical directives typically need to be updated to include the statutes of the state where you reside.
Another issue to consider if you recently moved to Arkansas is the “pretermitted heir law,” which states that if you have children you are not providing for under your Last Will and Testament, you must at least mention the child in your Will, even if you do not wish to leave that child an inheritance. Likewise, if you have a deceased child leaving children, you need to mention those grandchildren’s names in your Will. Failure to mention the child or grandchild can result in that person you wished to disinherit instead receiving a portion of your estate, despite the terms in your Last Will and Testament. This law is somewhat unique to Arkansas and provides an example of the need to have your plan reviewed.
No matter if you recently moved to Arkansas or have been a longtime resident, it is a good idea to review your estate plan if major circumstances have changed since you executed or last updated your estate planning documents. The following is a list of some family circumstances that could warrant an update to your estate plan.
Marriage or divorce of you or your heirs. In the event you
or an heir get married, remarried, or get a divorce, you need to make any necessary adjustments to your estate plan and your beneficiary designations.
The birth or adoption of a child. Your Last Will and Testament needs to include guardianship provisions for your minor children in the event something happens to you and/or your spouse. The death of a beneficiary.
Chances are, updating your estate plan in the midst of losing a family member is far from your mind. However, it is an important step that must not be forgotten.
A change in trustees or executor. Are your nominees still able and willing to serve?
Changes in the law. You will need to speak to an experienced attorney to make any appropriate changes to your estate plan if a major law changes regarding estate tax, probate, etc.
Illness or incapacity. Have you outlined your desires in the event you become incapacitated in your estate plan? What if one of your beneficiaries becomes incapacitated?
Gifts of Personal Items. Your estate plan should have provisions for the disposition of your sentimental personal items such as jewelry and family heirlooms.
Funeral/ Burial Instructions. Your estate plan should direct what type of funeral and burial arrangements you desire.
These life changes can lead to disputes among your family could be avoided by a periodic review or update to your estate plan. Wesley Harris is an associate attorney at Farrar & Williams, PLLC and can be contacted at 501-525-4401 or by email at wesley@farrarwilliams.com. Wesley can answer any questions you have about this subject.