When Should You Review and Update Your Estate Plan?
A practical checklist for keeping wills, trusts, powers of attorney, and beneficiary forms current.
An estate plan reflects a particular family, balance sheet, and set of laws at a particular time. Even an excellent plan can become ineffective when those facts change. A regular review helps ensure that the documents still match the client’s goals. REVIEW AFTER MAJOR EVENTS. Revisit the plan after marriage, divorce, birth, adoption, death, disability, estrangement, retirement, a major inheritance, the sale of a business, or a substantial change in assets. A move to another state should also trigger review. CHECK THE PEOPLE YOU NAMED. Confirm that executors, trustees, agents, and proposed guardians remain appropriate and willing to serve. Name alternates. Consider whether a beneficiary now needs protection because of age, disability, creditor concerns, addiction, divorce risk, or financial inexperience. CHECK ASSET OWNERSHIP. Compare deeds, account titles, business records, and beneficiary designations with the will and trust. A newly opened account or refinanced home may not be coordinated with the existing plan. Review retirement accounts and insurance separately because their beneficiary forms usually control. CHECK INCAPACITY DOCUMENTS. Financial and health-care powers of attorney should name current agents and reflect current wishes. Hospitals and financial institutions should be able to identify and review the documents when needed. CONSIDER CHANGES IN LAW. Tax laws, retirement-account rules, digital-asset statutes, probate procedures, and state forms change over time. Illinois, Minnesota, and Wisconsin do not use identical rules. A plan prepared before a move—or based on an older version of the law—may benefit from revision even if the family has not changed. SET A ROUTINE. A review every three to five years is a useful default, with earlier review after a major event. The review may confirm that no amendment is needed, but that confirmation has value. THE BOTTOM LINE. An estate plan should evolve with the person who created it. Periodic review is one of the simplest ways to reduce probate problems and family conflict. This article provides general educational information and is not legal advice. Consult a qualified attorney about your specific circumstances.
