Today’s population is aging quickly. Many parents of adult children completed their estate planning documents long ago and chances are the plans have been sitting in a safety deposit box or in a lawyer’s office. So these documents may be really outdated or, worse yet, may no longer be true to parents’ wishes. Adult children may wish to approach their parents to mention having an attorney review and/or update an old estate plan, which may save a lot of money and countless headaches in the long run.
Old documents do not bode well
Outdated documents are not looked upon positively by financial institutions. If a testator has never updated estate planning documents, chances are certain things may no longer be valid. For instance, what if the named executor has died? Banks want to know that wills are still valid, so updating these documents while a testator is still living is extremely important.
Laws change, too
State laws regarding estate planning could also change and so may not coincide with stale estate planning documents. Legal jargon could also change and legal forms may have been modified to reflect those changes. For example many lawyers changed trust language to reflect a retirement-related law known as the Secure Act. The language in a trust must be modified to adhere to this law. There are so many reasons an estate plan must be kept current.
Changes are constantly being made to estate planning laws. If parents in Colorado have not updated their estate plans, it could leave their children bearing the consequences. It is best to have these plans brought into line with current laws and legalese.