Your estate plan isn’t a “set it and forget it” document—it’s a dynamic framework that should grow and change as your life evolves. Ensuring your plan reflects your current wishes and circumstances is critical for protecting your legacy, providing for loved ones, and navigating the complexities of laws and taxes.
But how do you know when it’s time to revisit your estate plan? Here’s a guide to some of the most common triggers for an update, as well as why regular reviews are a smart way to ensure your plan remains effective.
Key Life Events That May Require an Estate Plan Update
Certain life events can significantly alter your estate planning needs. Consider revisiting your plan if any of the following have occurred:
- Loss of a Loved One: The death of a spouse, child, parent, or any individual named in your plan (such as an agent, trustee, guardian, or executor) can create gaps that need immediate attention.
- Family Changes: Events like divorce, separation, marriage, remarriage, or adoption can dramatically impact the distribution of assets, guardianship provisions, and beneficiary designations.
- Inheriting Assets: If you receive an inheritance, it’s essential to ensure those assets are protected and integrated into your existing plan effectively.
- Financial Changes: Significant increases or decreases in your financial situation—whether through a business sale, windfall, or unexpected loss—may necessitate revisions to account for new priorities or tax implications.
- Health Changes: Medical Events or changes in health status of yourself or your loved ones should prompt a review of your documents.
- Relocating to a New State: Moving to another state may require updates to your documents to comply with local laws regarding wills, trusts, and property ownership.
- Major Life Transitions: Milestones like children leaving for college, getting married, starting families, or your own retirement often bring new considerations for your estate plan.
- Healthcare Preferences: If your views on healthcare decisions evolve—especially with changes in healthcare laws—you should review advance directives and powers of attorney.
- Changes in Tax Laws: Updates at the federal or state level, such as shifts in estate or gift tax exemptions, can have a major impact on your planning strategies.
- Legal Updates in Your Home State: Significant changes in your home state’s estate planning laws or regulations should prompt a review to ensure your plan remains compliant and effective.
How Often Should You Review Your Estate Plan?
Even without a major life event, you should review your estate plan every three to five years—to ensure it still aligns with your current goals and circumstances. Regular reviews allow you to:
- Adapt to changes in personal preferences or relationships.
- Take advantage of new planning strategies or tools.
- Ensure compliance with ever-evolving laws and regulations.
Protecting Your Future Starts Today
Don’t wait for an unexpected event to force a hurried update. If any of the scenarios above resonate with you—or if it’s been a while since you last reviewed your plan—it’s time to act. At Kelleher + Holland, LLC, our experienced estate planning attorneys can help you navigate every step of the process, ensuring your plan evolves with you.