There’s no hard and fast rule that works for everyone, but here is some guidance on what documents to update and when to do so.
Legal documents you need to update
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- Will. Without a will, the courts decide what happens to your assets, including your underage children. Situations and circumstances are constantly changing, and it is essential that your will is updated periodically to reflect these changes.
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- Financial power of attorney. This document allows an agent or attorney to make financial and legal decisions on your behalf should you become incapacitated. This should be someone you trust, such as your partner, parent or a close friend. It is fraud to exercise a power of attorney that has lapsed.
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- Medical power of attorney. This document governs what happens to you from a medical perspective if you’re incapacitated. Take the time to discuss your wishes with whomever you choose
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- Living will. This document details what medical treatments you do or don’t want if you’re unable to make decisions because of a serious injury or illness.
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- Revocable trust. Check if this needs to be altered, modified or revoked entirely.
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- Passport/driver’s licence. Make sure these documents are up to date.
Additional documents to have on hand
Keep the following documents in a safe place so your family will be able to find them.
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- Letter of instruction. While not an official document, this includes information, such as your bank accounts and investments, and the location of important documents such as your passport.
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- Marriage and family documents. Include any documents that provide legal proof of various life events, such as birth certificates, marriage certificate, divorce decrees, death certificates for deceased family members, naturalisation or citizenship papers, motor vehicle registration certificate, court orders pertaining to support and custody of legal dependents, or adoption papers.
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- Insurance policies. Include life insurance, car insurance, property insurance and funeral policy.
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- Retirement annuities and pension fund documents
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- Medical reports
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- Firearm and TV licences
When to review and update your legal documents
Revise or update your documents if there is any change in your life, such as:
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- After a divorce or marriage
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- Prior to an overseas trip, extended vacation, operation or if you’re seriously ill
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- Your children are no longer dependent on you
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- After the death of a spouse or other close loved one, especially if you receive an inheritance or bequest
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- A birth or an adoption
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- If someone you’ve named as a fiduciary (executor, trustee or guardian) is no longer capable of holding the position
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- If an heir or potential beneficiary develops special needs that may need to be addressed within your documents
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- When you retire.
Sources
www.forbes.com/sites/lewissaret
www.militaryonesource.mil/financial-and-legal/legal-issues
www.omneslegal.com/estate-plan-part-3-review-update-legal-documents/
www.sars.gov.za/ClientSegments/Businesses/Trusts/Pages/Types-of-Trust.aspx
www.usaa.com/inet/wc/advice-military-updatinglegaldocs