If you already have your will, trust, and other estate planning documents in place, you’ve taken an important step toward ensuring your wishes are honored in the event of death or incapacity. However, it’s important to recognize that these documents are not static. To remain effective, your estate plan should be reviewed at least every three years when making significant financial updates. Life events and changing circumstances can also create the need for revisions. Let's take a look at some of the times you need to review your estate plan.
Your estate plan was based on your dependents’ needs at the time you signed it. Of course, children and other dependents grow and mature over time, which can make your estate plan outdated. If any of the following situations applies to you, it may be time to update your plan:
The guardian named in your will has passed away or can no longer serve
Changes in family relationships or health circumstances can significantly impact your estate plan. Some examples include the following:
A key family member passes away or becomes disabled
A big part of estate planning is based on the types and size of assets you own. When your financial situation changes, either for the better or worse, your will and trust may need to be adjusted. Failing to plan for these types of changes could mean your estate plan is incomplete or is no longer accurate:
Your estate plan should also accurately reflect your career goals and those of your spouse (if applicable.) Business owners may be particularly at risk of having outdated estate plans if they don’t make periodic updates. Consider revisiting your plan if any of these situations apply:
Your financial goals or those of your spouse shift significantly
Estate planning laws are largely state-specific and do change over time, whether it’s updates to tax codes, regulations governing trusts, or state-specific probate rules. Even minor legislative shifts can significantly impact the effectiveness of your current plan. Staying informed and making necessary adjustments ensures your documents remain compliant and optimized for current legal standards. It’s essential to re-evaluate your documents if:
You move to a different state
Federal or state estate tax laws change
Life is unpredictable, which is why regular reviews of your estate plan are critical. Additional reasons to evaluate your will, trust, and advance directives include:
Preparing your estate planning documents was an important step, but don’t take a “set it and forget it” approach to your plan. Regularly reviewing and updating your documents ensures your wishes are honored, your legacy preserved, and your loved ones protected. If you’re unsure where to begin or need help reviewing your plan, Caldwell is here to guide you every step of the way. Contact us today to schedule a consultation and ensure your estate plan is up to date and working for you.