When Should You Review and Update Your Estate Plan?
After signing their estate planning documents, many people assume the process is complete. In reality, an estate plan should evolve over time. As your life circumstances, finances and family relationships change, your estate plan should be reviewed to ensure it still reflects your intentions and your current family and financial circumstances.
Although estate planning documents do not technically expire, there are several common situations that should prompt a review.
Major Life Changes
Significant life events are one of the most common reasons to revisit an estate plan. Marriage, divorce or the arrival of a child can all affect how you want your assets handled in the future.
For example, individuals who create a plan before marriage may later wish to include their spouse in their documents. Similarly, the birth or adoption of a child often leads parents to add guardianship provisions and financial protections for their children. In some families, additional planning may be appropriate if a child has special needs.
Divorce is another event that typically requires updates. Asset distribution provisions, fiduciary appointments and beneficiary designations on retirement accounts or insurance policies may all need to be revised following the end of a marriage.
Remarriage following a divorce is also an important time to consider updating an estate plan. Spouses will want to make sure that their plan protects any children from a previous marriage as well as a subsequent spouse.
Changes in the People Named in Your Plan
Estate plans often rely on trusted individuals to carry out important responsibilities. Executors, trustees, guardians and beneficiaries may all play key roles.
If someone named in your estate planning documents passes away, becomes incapacitated or is no longer able to serve in their role, it is wise to review the plan and determine whether a replacement should be designated.
Health or Capacity Concerns
Serious health conditions or concerns about cognitive decline can also make it important to review estate planning documents. During these situations, powers of attorney often become particularly important.
In many cases, individuals choose to update their financial or healthcare powers of attorney to ensure the documents are current and will be accepted by financial institutions or healthcare providers.
Financial Changes Over Time
Your estate plan should also reflect your current financial situation. A significant increase or decrease in assets may affect how property should be distributed or whether additional tax planning strategies should be considered.
Financial changes may also influence charitable giving goals or how assets are divided among beneficiaries.
Reviewing Do-It-Yourself Estate Plans
Many individuals initially create estate planning documents using AI or other online tools or pre-printed forms. While these options can be convenient, they may not always reflect a person’s current wishes or comply with applicable state laws.
Having these documents reviewed by an experienced estate planning attorney can help ensure they are legally sound and aligned with your goals.
Periodic Reviews Are Still Important
Even when no major life event occurs, reviewing an estate plan periodically is a good practice. We recommend reviewing your documents every few years to confirm that beneficiary designations remain accurate, assets are properly titled and your plan continues to reflect your intentions.
If you have questions about reviewing or updating your estate plan, the attorneys at Martin Pringle are here to help. Contact the estate planning team at Martin Pringle to schedule a consultation and ensure your estate plan continues to protect your goals, your family and your legacy.
