How Often Should Legal Documents Be Reviewed?

By Ronald Niclas, MBA, CFP, EA

Upon executing updated legal documents, Will’s most noticeably, clients will normally let out a big sigh of relief and say "glad that’s over with, now I don’t have to worry about it for a long time." The document most likely gets placed in a safe deposit box and in the absence of a death or a life-changing event that may arise it will accumulate a thin layer of dust that will eventually get wiped off. The bank, upon news of the death, may lock up a safe deposit box. Your will and legal documents should be kept in the house–they are non-negotiable and of no use to anyone other than you and your family. When we ask a new or existing client if they have a Will the answer is often yes, but the follow up question regarding how old it may be often results in reply’s of ten or more years. We encourage all our clients to periodically review and, if necessary, update their legal documents. Just how often will depend on the type of document, whether it is business related or personal, and what the circumstances are that have changed. We thought it would be appropriate to offer a list of typical events that might take place to act as a catalyst for change to your legal documentation. While not claiming to be all-inclusive, some representative events could be:

• Marriage
• Divorce
• Death of a spouse
• A substantial change in estate size
• A move to another state
• Death of executor, trustee or guardian
• Birth or adoption
• Serious illness of family member
• Change in business interest
• Retirement
• Change in health
• Change in insurability for life insurance
• Acquisition of property in another state
• Changes in tax, property or probate and trust law
• A change in beneficiary attitudes
• Financial irresponsibility of a child

The above list should be an indication to you that many of the lifestyle changes that we experience should indeed trigger a review of your existing legal documents. It is not to suggest that the occurrence of every item will require an immediate redrafting of paperwork. Well thought out documents such as a Will may have anticipated contingent executors, trustees, or guardians, and the birth of a child may be covered by language already reflected such as "all my children living at the time of my death." A change in circumstances concerning your Will, Trust, Buy-Sell Agreement, etc. calls for a review before a crisis arises. If you have any questions please don’t hesitate to call us.