When Should You Update Your Estate Plan?

Creating an estate plan is an important step toward protecting your assets, making your wishes known, and helping your loved ones avoid unnecessary complications. But here is something many people forget: an estate plan is not always a “set it and forget it” document. Life changes, and when it does, your estate plan may need to change with it.

A common estate planning issue can be in having an outdated plan. You may have created a trust or other estate planning documents years ago. Your circumstances today could be very different. People get married, divorced, have children, welcome grandchildren, acquire property, start businesses, and experience changes in their finances. Each of these events can affect your estate plan.

For example, you may have named someone you trusted years ago as a trustee, beneficiary, or decision-maker. That person may no longer be suitable as trustee. They might have moved away or can no longer serve. They may have died. Update your estate plan now to avoid confusing your family in a crisis. Clear instructions can be especially important then.

Another potential estate planning issue can involve changes to your assets. Maybe you purchased a new home, acquired additional investments, started a business, or received an inheritance. Review your estate plan to ensure your current assets are properly addressed and coordinated with your overall plan.

Beneficiary designations are another area that deserves attention. Certain accounts, insurance policies, and financial assets may pass according to beneficiary designations rather than simply following the instructions in your estate planning documents. If those designations become outdated, the results may fail to reflect your current wishes.

Changes in relationships are also a good reason to review your estate plan. A divorce, remarriage, new child, or the birth of grandchildren can significantly change your priorities. Even a falling-out with someone you previously trusted may be a reason to reconsider who should have responsibilities under your plan.

You should review your health and incapacity planning periodically. Advance healthcare directives, powers of attorney, and other documents can help identify who you want making important decisions if you become unable to make them yourself.

So, how often should you review your estate plan? There is no one-size-fits-all answer, but reviewing it every few years—and whenever there is a major life change—is a smart approach. Waiting until a crisis occurs can make it much harder to correct problems.

Estate planning is about more than preparing documents. It is about making sure your plan continues to reflect your life, your family, your assets, and your wishes.

If you have experienced a major life change or simply cannot remember the last time your estate plan was reviewed, it may be time for an update. Cannon Legal Firm offers free, no-obligation consultations to help you understand your estate planning options and determine whether your current plan still fits your needs.