Why Updating Your Estate Plan Is One of the Most Important Things You Can Do

Updating Your Estate Plan With the Help of a Yorkville, Illinois Estate Planning Attorney

Many Illinois families take the responsible step of creating an estate plan, but they may then never look at their plan again. Years or decades may pass, the lives of family members may change dramatically, and the documents sitting in a drawer may no longer reflect a family's reality.

An outdated estate plan can be almost as dangerous as having no plan at all. Updating and amending your estate plan is not about starting over. It is about making sure your plan still works, still reflects your wishes, and still protects your family under Illinois law.

The Common Problem: Old Wills That No Longer Make Sense

At Gateville Law Firm, one of the most common issues we see is old wills that were never updated. A person may have created a will in a situation such as:

• When their children were young
• Before a marriage or remarriage
• Before a divorce
• Before significant assets were accumulated
• Before moving to Illinois

These wills may name executors who are no longer appropriate, grant assets to beneficiaries who have passed away, or include distributions that no longer align with family relationships. Under Illinois law, a will only works if it is admitted to probate court, and outdated wills often lead to disputes, delays, and increased legal fees. In blended families, old wills can unintentionally disinherit children or create conflict between spouses and stepchildren.

Old Living Trusts Can Be Just as Risky

Having a living trust is often a great start, but only if it is current and properly maintained. Living trusts may have been created:

• Years ago with the help of a prior attorney
• In another state before moving to Illinois
• Before changes to Illinois estate tax laws
• Before acquiring real estate, businesses, or retirement assets
• Before changes in family dynamics took place

Trusts drafted under another state's laws may not fully account for issues such as Illinois estate taxes, guardianship rules, or long-term care planning considerations. An outdated trust may still be valid, but it may no longer be effective.

The Hidden Danger: Unfunded Living Trusts

Some of the biggest and most costly mistakes we see involve unfunded living trusts. A living trust will only avoid probate if assets are actually titled in the name of the trust. Unfortunately, some attorneys may never complete the funding process or their clients may not have been clearly instructed on funding. In some cases, assets may have been acquired later and were never transferred into a trust, or beneficiary designations may not have been coordinated.

When a trust is not properly funded, assets will remain in an individual's name, and they will still be subject to probate, even if a family believed a trust would avoid probate. These issues may not be discovered until after a person's death, when it is too late to fix them.

What Happens If a Living Trust Is Not Funded?

An unfunded or partially funded trust can result in:

• Probate court involvement
• Delays in accessing assets
• Increased legal fees
• Family confusion and frustration

Families may be shocked to learn that having a trust did not actually keep them out of court.

The Role of the Pour-Over Will

A pour-over will is an important backup document that works alongside a living trust. If an asset was never transferred into the trust during a person's life, a pour-over will can transfer that asset into the trust through probate after the person's death.

While a pour-over will can help catch mistakes, it will not avoid probate for those assets. It is a safety net, not a substitute for proper trust funding. Relying on a pour-over will instead of properly funding a trust will often defeat the primary purpose of creating the trust in the first place.

Why You May Need to Amend Your Trust

When you experience life changes, your trust should change with you. Trust amendments are commonly needed after:

• Marriage or divorce
• Remarriage or blended family changes
• The birth or death of beneficiaries
• Significant changes in wealth
• The purchase or sale of real estate
• Business formation or sale
• Changes in tax laws

Failing to amend a trust can result in outdated instructions, tax issues, and assets going to unintended beneficiaries. Amending a trust is usually far easier and less expensive than dealing with problems after a person's death.

Powers of Attorney: Often Forgotten, Often Outdated

In addition to determining what will happen after a person's death, estate planning can also address incapacity. Many people may rely on old statutory powers of attorney, documents that were created decades ago, or forms that do not reflect their current assets. Outdated powers of attorney may fail to address issues such as:

• Management of retirement accounts
• Real estate transactions
• Long-term care or Medicaid planning
• Trust funding or trust administration

Without the proper powers of attorney in place, families may be forced into guardianship court, even when a trust exists.

Healthcare Powers of Attorney and HIPAA Authorizations

Medical decision-making documents must also be kept current. Advance healthcare directives, healthcare powers of attorney, and HIPAA authorizations will need to name the right decision-makers. They must reflect a person's current wishes while complying with the current laws. If these documents are outdated or missing, families may struggle to communicate with doctors, or they may be unable to make timely medical decisions during emergencies.

Estate Planning Is a Living Process

An estate plan should not be a one-time event. It should be reviewed every few years, after major life events, after moving to a new state, or after major changes in assets or family structures. Regular reviews can help ensure that all documents, including wills, trusts, powers of attorney, healthcare directives, and HIPAA releases, will work together as a coordinated plan.

The Takeaway: An Updated Plan Can Protect the People You Love

Most estate planning problems are not caused by bad intentions. They are caused by outdated documents, unfunded trusts, and plans that were never revisited. Updating and amending your estate plan can help ensure that your wishes will be honored, your assets will be protected, and your loved ones will be spared confusion and conflict. It can also help avoid probate whenever possible and prevent your family from unnecessary court involvement.

An estate plan should grow and change as your life does. Reviewing it now can prevent costly and painful consequences later. To learn how Gateville Law Firm can help you make sure your estate plan meets your current needs while putting the proper precautions in place for the future, contact our Yorkville estate planning attorneys at 630-780-1034.