Updating Your Estate Plan: When and Why You Should Review It
Creating an estate plan is an important step toward protecting your family, your assets, and your wishes if you become incapacitated or pass away. But just because you’ve signed all the documents doesn’t mean you can put your estate plan in a safe place and forget about it until it’s needed.
Think of your estate plan as a living, breathing plan—not a one-time document. As your family, relationships, finances, and goals change, your estate plan should change right along with them. An estate plan reflects your life at a certain point in time, and even though it made sense years ago, it may no longer reflect your wishes.
A regular review of your estate plan helps ensure that your will, trust, beneficiary designations, powers of attorney, and health care documents continue to work together as intended.
How Often Should You Review Your Estate Plan
As a general rule, you should review your estate plan every three to five years. However, if you experience any major life changes or events, you may not want to wait that long. Some circumstances require an immediate review.
Even if nothing changes in your life, reviewing your plan periodically can help to identify any outdated information. Your named executor, trustee, beneficiary, power of attorney, or healthcare agent may no longer be the person you want making important decisions for you, your family, or your property.
When Should You Update Your Estate Plan?
Certain life events are strong reasons to update your estate plan, such as:
1. Marriage or Divorce
Getting married often changes your priorities. You may want to provide for your spouse, revise your beneficiary designations, or change who you want to manage your assets if you become incapacitated.
Divorce is equally important. Depending on your circumstances and the documents involved, you may need to update your will, beneficiaries, powers of attorney, and other provisions. If a divorce or legal separation is pending, however, California law may restrict certain beneficiary changes, nonprobate transfers, and property transfers, so it is important to consult counsel before making changes.
If you remarry, it’s especially important that you review your estate plan carefully. Blended families often require different strategies to ensure provisions for both their new spouse, children from a previous relationship, and other family members.
2. Birth or Adoption of a Child
The arrival of a child is cause for both a celebration and updating your estate plan. New parents may need to name a guardian for minor children in the event they both pass away or become incapacitated. You will also want to review how your children will inherit your assets and whether your current trust provisions still make sense.
3. Death or Incapacity of a Beneficiary or Fiduciary
The people you named to important roles in your estate plan may not always be willing or able to serve.
For example, the person you named as executor may have passed away, moved, become ill, or no longer be someone you trust to carry out their responsibilities. The same goes for people named as trustees, powers of attorney, or healthcare agents.
If someone named in your estate plan can no longer serve, it’s essential to update your plan to prevent confusion when your family needs them.
4. Significant Changes in Your Assets
Buying or selling a home, starting a business, or receiving an inheritance justifies an estate plan review.
If your estate has grown substantially since you created your plan, you may need to reconsider your strategy to ensure it’s still tax-efficient.
5. Changes in State and Federal Laws
Tax laws, probate laws, and court procedures change regularly and may require a review of your estate plan. For example, for qualifying deaths beginning April 1, 2025, California expanded a simplified court procedure for transferring certain real property that was the decedent’s primary residence, subject to statutory requirements and a $750,000 gross-value limit for deaths through March 31, 2028.
Keeping Your Estate Plan Up to Date
Your estate plan should change as your life changes. If you have experienced a major life event or it has been several years since you reviewed your documents, now may be a good time to take another look.
Our attorneys at Lonich Patton Ehrlich Policastri can review your current plan, identify outdated provisions, and help ensure your will, trust, beneficiary designations, powers of attorney, and other documents reflect your current wishes.
Contact us at 408-553-0801 to schedule your free consultation and take the next step toward protecting your loved ones and your assets.
Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
