It’s important for Virginia residents to update their estate plans regularly in order to make it as easy as possible for their loved ones and the people handling their estate. Fiduciaries act in the best interest of the beneficiaries in the form of either an executor or trustee.
Executors are appointed to manage a will and have control of the assets during the probate process until those assets can go to who the will assigns them to. Trustees control assets held within trusts, either immediately after the person’s death or for years after depending on the terms of the trust.
How do outdated wills cause mistakes?
Some wills that haven’t been updated in some time might not have the correct fiduciary listed. For example, if you were to name your parents as an executor of your will, there’s a chance that your parents might pass before you.
It’s also possible to name a professional such as a CPA as a fiduciary. An outdated will might have a professional listed as the fiduciary when they’re no longer practicing.
Making sure all policies and beneficiaries have the latest information
Another way that outdated estate plans can cause problems is when incorrect information or outdated policies are included in the plan. For example, if you’re no longer using a life insurance policy, then it should be removed from your will.
It’s also important to update names and addresses of the beneficiaries in your will should they change. Having an outdated information for your beneficiaries can cause problems with handing over the asset.
To help fiduciaries, it’s important to make sure that you have the right fiduciary named and all of the correct, updated information in your estate plan. You should plan on updating your estate plan every few years or with every major life event.
