Many Coloradans craft estate plans, then file them away and forget about them. But an outdated plan can create the very problems you were trying to prevent. To ensure your estate plan endures, consider reviewing your documents after meaningful events.
Relationship changes
In Colorado, divorce often revokes provisions naming an ex-spouse in a will and many other revocable designations, but it’s still smart to review everything. Further, marriage doesn’t automatically update your plan. If you’ve entered a new marriage, particularly as an LGBTQ+ couple with complex family dynamics, existing documents likely don’t reflect your current wishes.
For those in long-term committed relationships without valid common-law or formal marriage, regular updates become even more critical. Colorado law won’t assume your partner has any rights without proper legal recognition of the union.
When your family grows or changes
The birth or adoption of children, grandchildren or stepchildren represents one of the most important times to revisit your plan. Who will care for minor children if something happens to you? Are your assets distributed to reflect your current family structure?
Estrangement from family members also warrants attention. Without updates, someone you no longer wish to benefit might still inherit, or worse, be positioned to make critical healthcare decisions on your behalf.
Significant financial shifts
Major financial changes can trigger a review. Consider revising after:
- Buying or selling a home
- A big increase in property value
- Starting or selling a business
- Receiving an inheritance
- Major changes in retirement savings
Your estate plan should align with what you own and how those assets are titled. An update can help ensure your plan reflects your current finances and goals.
When key people in your plan change
What happens when the executor you named moves out of state, becomes ill or simply isn’t the right choice anymore? What if your designated guardian divorces, or your healthcare proxy develops serious health issues?
The people you’ve entrusted with critical roles need to be willing, able and appropriate today, not just when you first named them.
Your health status changes
A new diagnosis, a chronic condition or simply aging should prompt you to reconsider your healthcare directives and long-term care planning. Are your wishes about medical intervention clearly stated? Have you addressed what happens if you need extended care?
An estate plan is not a “set it and forget it” document. It’s a living framework that should evolve as your life evolves.