By: Jessica A. Saio, Esq.

Creating an estate plan is one of the most important steps you can take to protect your family, preserve your assets, and ensure your wishes are honored. However, signing your documents does not mean the planning process is complete. As your life changes, your estate plan should be reviewed and updated to continue to reflect your goals and provide the protection you intend. Significant personal, financial, or legal developments can affect whether your existing documents remain effective.

How Often Should You Review Your Estate Plan?

As a general guideline, you should review your estate plan every three to five years, even if nothing significant has changed. Regular reviews help identify outdated provisions, account for changes in the law, and ensure your documents continue to reflect your wishes and goals. Certain life events, however, may require a more immediate review.

Major Life Events That May Require an Update

• Marriage or Divorce. Getting married often means adding your spouse to your estate plan or adjusting beneficiary designations. Conversely, divorce may require removing a former spouse from your estate planning documents.
• The Birth or Adoption of a Child. Welcoming a new child into your family is one of the most important reasons to update your estate plan. Parents should consider naming guardians, establishing trusts for minor children, and ensuring their assets will be managed according to their wishes.
• A Child Reaching Adulthood. When a child turns 18, it is important to revisit your estate plan. Once a child becomes a legal adult, guardianship provisions may no longer be necessary, and any trust established for minor children may need to be reviewed to determine whether changes are appropriate.
• A New Diagnosis or Change in Health Circumstances. A new diagnosis, disability, or change in health circumstances may require updates to your estate plan. Special needs or elder law planning considerations, including the use of appropriate trusts and benefit planning, can help protect a loved one and preserve eligibility for important government benefits.
• Changes in Financial Circumstances. A significant increase or decrease in wealth, purchasing real estate, starting a business, receiving an inheritance, or selling valuable assets can all affect your estate or tax planning strategy. Reviewing your estate plan after major financial changes helps ensure it continues to reflect your current circumstances and long-term goals.
• Death or Incapacity of a Beneficiary or Fiduciary. If someone named in your estate plan passes away or becomes unable to serve as a fiduciary, it is important to review and make any necessary updates. This may include naming a replacement fiduciary or revisiting how your assets will be distributed.
• Relocation to Another State. Estate planning laws vary from state to state. If you have moved, your documents should be reviewed to confirm they comply with your new state’s legal requirements.
• Changes in the Law. Estate planning laws are subject to change. Updates to federal or state tax laws, probate procedures, or laws governing trusts and powers of attorney may affect how your existing plan operates. Periodic reviews can help determine if updates need to be made to continue to accomplish your goals.

Review Your Beneficiary Designations. Many assets, including retirement accounts, life insurance policies, and payable-on-death accounts, pass directly to the beneficiaries listed on those accounts rather than through your will or trust.It is essential to review these designations regularly, especially after major life events, so that assets are distributed according to your current wishes.

Review Your Fiduciary Appointments. Your estate plan likely names individuals to serve in important roles, including your executor, trustee, agent under your power of attorney, and healthcare agent. As relationships change and people age, it is important to confirm that these individuals are still willing and able to serve in these roles.

Estate planning is an ongoing process. As your life changes, your estate plan should change with it to reflect your wishes and address your family’s evolving needs.

If it has been several years since your estate plan was last reviewed or you have recently experienced a major life event, now may be a good time to revisit it. Consulting with our attorneys at Littman Krooks can help ensure your documents remain current, effective, and tailored to your needs.