One of the most common questions clients ask after signing their estate plan is how often should it be updated?
There is no expiration date on your estate plan. However, as personal, financial, and legal circumstances change, a plan should be reviewed and revised as needed. The following are seven common situations that warrant an estate plan update:
1. Marriage
If an estate plan was prepared before marriage, it should be reviewed. Individuals may wish to include a spouse or, if assets are to remain separate, clearly document their intent to avoid future disputes.
2. Birth or Adoption of a Child
Many individuals create or revise an estate plan when they become parents. Plans should be updated to include any children, designate guardians, and establish financial protections. Additional planning may be necessary for your children with special needs.
3. Divorce
Divorce often requires significant changes to an estate plan, including revisions to asset distribution and fiduciary appointments. Beneficiary designations for retirement accounts, insurance policies, and financial accounts should also be reviewed and updated.
4. Death or Incapacity of a Key Individual
If a person named in the estate plan, such as a trustee, succession trustee, or beneficiary, dies or becomes unable to fulfill their role, the plan should be reviewed to determine whether updates are necessary.
5. Serious Medical Diagnosis or Cognitive Changes
A serious medical diagnosis or concerns about cognitive decline should prompt a review of estate planning documents. In many cases, updating powers of attorney is advisable, as financial institutions may not accept documents that are several years old.
6. Do-It-Yourself Estate Planning
Individuals who used online or self-prepared estate planning documents may wish to have those documents reviewed by an attorney to confirm they reflect current goals and comply with applicable state law.
7. Significant Financial Changes
Substantial increases or decreases in assets may require adjustments to an estate plan. Changes in wealth may affect tax planning, charitable giving strategies, or how assets are distributed among beneficiaries.
Ongoing Review
Even if no major life event has occurred, estate plans should be reviewed approximately every three years. Regular reviews help ensure assets are properly titled, beneficiary designations remain accurate, and legal documents remain current.
If it is time to update your estate plan, contact a member of our Estate Planning Practice Team to review.
