Creating an estate plan is an important first step toward protecting your assets and ensuring your wishes are honored. But it’s not a one-and-done task. Life changes and so should your estate plan. Outdated documents can cause confusion, conflict, and unintended outcomes when it matters most. So how often should you review and update your plan?
The General Rule: Every 3-5 Years
Even if nothing major has changed in your life, it’s wise to review your estate plan every three to five years. Laws evolve, financial situations shift, and new planning tools become available. A regular check-in with your estate planning attorney can help ensure your documents remain accurate, enforceable, and aligned with your current goals.
Key Life Events That Call for an Update
Several pivotal life events should trigger an immediate review of your estate plan.
If you get married or divorced, it’s essential to reassess who is named in your estate documents. You may need to update beneficiary designations, remove or add a spouse, and change powers of attorney or trustees to reflect your new circumstances.
The birth or adoption of a child or grandchild introduces new individuals who may need to be provided for in your estate. Updating your will or trust can ensure these new family members are included, and that guardianship plans are in place should anything happen to you.
If someone named in your estate plan, such as a beneficiary, executor, or trustee—passes away or becomes incapacitated, you’ll need to name a new person to fill that role. Relying on outdated information can cause delays and confusion when your estate is administered.
Significant financial changes, such as buying or selling real estate, starting a business, or receiving an inheritance, can affect how your assets should be distributed. Your estate plan should be adjusted to reflect these changes and to ensure your assets are protected appropriately.
If you’ve recently moved to a different state, your estate plan may not comply with your new state’s laws. Powers of attorney, health care directives, and even the validity of your will could be affected by the relocation.
Finally, changes in federal or state tax laws can influence your estate planning strategy, especially if your estate approaches or exceeds taxable thresholds. Regular reviews ensure you take advantage of new tax-saving opportunities and avoid unintended liabilities.
For more insight into what can go wrong when documents are outdated, see our blog: 5 Mistakes to Avoid When Updating Your Estate Plan.
What Should You Be Reviewing?
When updating your estate plan, it’s important to review your will and any trusts to ensure they reflect your current intentions. You should also revisit your powers of attorney for both health care and financial matters to confirm that the individuals you’ve appointed are still the best choices. Beneficiary designations on life insurance policies, retirement accounts, and any payable-on-death accounts should be checked for consistency with your overall plan. If you have minor children, confirm that your guardianship provisions are still appropriate. And in today’s digital world, don’t forget to include updated instructions for managing digital assets, personal data, and online accounts. A qualified estate planning attorney can help you assess all aspects of your plan, verify that your trusts are properly funded, and ensure compliance with any new laws or regulations.
Stay Prepared with a Proactive Approach
An estate plan should grow and change with you. Failing to update your documents can lead to delays, increased costs, or family disputes after you’re gone. By staying proactive, you give your loved ones the clarity and legal protection they deserve.
Ready to review your plan? Contact the estate planning attorneys at Lowthorp, Richards, McMillan, Miller & Templeman at (805) 981-8555 or use our online contact form. We proudly serve clients in Ventura, Santa Barbara, and San Luis Obispo Counties.