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 Of course, children and other dependents grow and mature over time, which can make your estate plan outdated.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 Business owners may be particularly at risk of having outdated estate plans if they don’t make periodic updates.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.
It is generally a good idea to review your estate plan at least every three years and whenever you experience a significant life or financial change. Regular reviews can help ensure your will, trust, beneficiary designations, powers of attorney, and other documents continue to reflect your current wishes and circumstances.
Major life events such as marriage, divorce, the birth or adoption of a child, the death of a beneficiary or trustee, a significant change in assets, starting or closing a business, or moving to another state are all reasons to review your estate plan. Changes in federal or state law may also make an update necessary.
Yes. Marriage or divorce can affect how you want assets distributed, who you name as a beneficiary, and who is authorized to make financial or healthcare decisions on your behalf. Reviewing your estate plan after either event can help ensure your documents accurately reflect your current relationships and wishes.
The birth or adoption of a child or grandchild may be a good reason to revisit your estate plan. You may want to add beneficiaries, reconsider how assets will be distributed, plan for education expenses, or update guardianship provisions for minor children.
Yes. Significant changes to your assets or liabilities can affect your existing estate plan. Purchasing property, receiving a substantial inheritance or gift, taking on major debt, or experiencing a significant increase or decrease in investment values may warrant a review of your will, trust, and other planning documents.
Moving to another state is an important reason to have your estate plan reviewed. Estate planning, probate, trust, and tax laws can vary by state, so documents created under one state's laws may need to be evaluated after you establish residency somewhere new.
If someone you named to an important role in your estate plan dies, becomes incapacitated, or is no longer willing or able to serve, your documents should be reviewed. Updating these appointments can help ensure that someone you trust is available to carry out your wishes or make decisions on your behalf.
It can. Starting, growing, selling, or closing a business may significantly change your assets, liabilities, income, and long-term goals. Business owners should periodically review their estate plans to make sure their personal and business interests are addressed as their circumstances evolve.
Yes. Changes to federal or state estate tax laws, trust regulations, and probate rules can affect how an existing estate plan works. Periodic reviews with your professional advisors can help identify whether changes in the law warrant updates to your planning documents.