Times to Consider Updating Your Estate Plan

Updating your estate plan is essential to ensure that it reflects your current wishes, accommodates changes in your life circumstances, and remains compliant with the applicable laws and regulations. There is no fixed timetable for updating an estate plan, as it largely depends on individual circumstances and changes that occur in your life. However, certain life events or milestones can serve as reminders to review and update your estate plan. Here are some times to consider updating your estate plan:

1.      Changes in Family Status: Major life events such as marriage, divorce, birth of a child, or the death of a loved one can significantly impact your estate plan. You may want to add new beneficiaries or update the distribution of assets accordingly.

2.      Changes in Financial Situation: If your financial situation undergoes significant changes, such as a substantial increase or decrease in assets or income, you should review your estate plan to ensure it aligns with your current financial goals.

3.      Relocation: Moving to a different state or country could trigger the need for an update, as estate planning laws may vary across jurisdictions.

4.      Changes in Tax Laws: Tax laws related to estates and inheritances can change over time. Reviewing your estate plan can help ensure it remains tax efficient.

5.      Health Issues: If you or a family member experiences health issues, you may want to consider updating your estate plan to include healthcare directives and powers of attorney.

6.      Beneficiary Designations: Regularly review and update beneficiary designations on retirement accounts, life insurance policies, and other financial assets to ensure they align with your estate plan.

7.      Business Ownership: If you own a business or have become a partner/shareholder in a company, you should update your estate plan to address succession planning and the transfer of business interests.

8.      Changes in Guardianship Decisions: If you have appointed guardians for your minor children, consider whether those decisions remain appropriate given any changes in circumstances.

9.      Review Periodically: Even in the absence of major life events, it’s a good practice to review your estate plan every few years to ensure it remains relevant and up-to-date.

Remember, estate planning is a dynamic process, and it is advisable to consult with an experienced estate planning attorney to assess your specific situation and make any necessary updates to your estate plan.

If you work with our firm, you know that we send out annual “peace of mind” summary letters which are designed to help you quickly and easily determine what may need to be updated. We also will let you know if any relevant laws have changed which might have an impact on your own estate plan.