When (and one good reason why) to Update an Estate Plan
It is no secret that the legal profession has a challenge convincing the general public that every adult should make a Will. It is estimated that only 21 percent of Canadian adults under the age of 35 have a Will.
But once a Will is made, it may also be a challenge to ensure that wills (and estate plans generally) remain up to date. Lawyers commonly will advise their clients to review their estate plan at least every five years unless there has been an intervening event (such as a birth, death, divorce, sale of an asset, or change in the law) that may impact the terms of a Will. Often, however, the impact of such an event on one's estate plan is given little immediate thought, particularly if the testator is relatively young.
As a cautionary tale, consider the tragic death of Mark Madoff, (son of disgraced financier Bernie Madoff) who committed suicide on December 11, 2010. Mark Madoff, 46, did not amend his will after his father’s downfall. Mark Madoff named his father as co-executor of his estate, but because Bernie Madoff cannot serve as executor, the sole remaining executor is Andrew Madoff, Mark Madoff’s brother. Not only did Mark Madoff not change his executor; a trust created for his children was never amended to include his 2-year-old son, Nicholas, born after the Will was made.
David M. Smith - Click here for more information on David Smith.
