Investing
How often should you update your estate plan? The events that demand a refresh
Global Banking & Finance Review®
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Creating an estate plan is one of the most responsible financial decisions you can make. It outlines how your assets, property, and personal wishes will be managed or distributed when you’re gone. But estate planning isn’t a one-time effort—it’s a continuous process. Life evolves, and your estate pl...
Creating an estate plan is one of the most responsible financial decisions you can make. It outlines how your assets, property, and personal wishes will be managed or distributed when you’re gone. But estate planning isn’t a one-time effort—it’s a continuous process. Life evolves, and your estate plan must evolve with it to stay accurate and effective.
Over time, your family dynamics, finances, and even local laws can change. A plan that was perfect five years ago might not reflect your current reality. Regularly reviewing and updating your estate plan ensures that your loved ones are protected, your wishes are clear, and your estate avoids unnecessary taxes or legal complications. You can build your estate plan easily with FastWill.
Your life today might look very different from what it was just a few years ago. Maybe you bought a new home, welcomed a child, changed jobs, or retired. Each of these events can have a major impact on your financial situation and your long-term goals.
Examples of life changes that affect estate planning include:
Ignoring these updates can cause serious problems. For instance, if your estate plan still lists a former spouse as your life insurance beneficiary, your assets could end up in the wrong hands.
Tax laws and estate regulations don’t stay static. Federal estate tax exemptions, state inheritance laws, and probate requirements often change every few years. An outdated plan could expose your estate to higher taxes or unnecessary probate delays.
Expert tip:
Most estate planning attorneys recommend revisiting your estate plan every three to five years. This interval allows you to catch both life changes and shifts in financial or legal environments before they create problems.
A regular review ensures:
During your review, ask these key questions:
Keeping your plan relevant ensures that it functions smoothly when needed.
Certain milestones require immediate updates to your estate plan. Waiting too long could result in confusion or unintended outcomes.
Marriage creates new legal and financial ties, while divorce dissolves them. Both events directly affect your estate plan. You’ll need to:
Expert tip: Always review your plan as soon as divorce papers are finalized. Some states automatically revoke spousal inheritance rights, but not all.
When you welcome a child into your family, you gain new responsibilities that your estate plan must reflect.
Key updates include:
Including specific instructions about education and healthcare decisions gives you peace of mind.
If someone named in your estate plan dies, you must designate a new individual immediately. Failing to do so could delay asset distribution or force the court to appoint someone for you.
Major financial shifts—such as an inheritance, a career change, or selling your business—affect your estate structure.
In such cases:
Your plan should always mirror your current wealth and financial priorities.
Each state has different estate, tax, and probate laws. Moving to another jurisdiction can make your existing plan partially invalid. For example:
Expert tip: Review your estate plan with a local attorney after relocating to ensure full legal validity.
Entrepreneurs should treat business transitions as major estate planning events.
Actions to consider:
A well-updated plan ensures business continuity and protects employees and family members.
If your health changes significantly—due to illness, disability, or aging—update your healthcare directives and financial powers of attorney.
Include details such as:
Even small legal updates can impact estate taxation. Periodically confirm that your estate remains structured for tax efficiency and compliance.
Stay proactive by:
Family relationships evolve over time. If you’ve become distant from a family member or reconnected after years apart, your estate plan should reflect these changes.
For example:
If you change your financial advisor, attorney, or child’s guardian, update your plan immediately. Outdated fiduciary roles can cause confusion and legal disputes later on.
Your estate plan may be obsolete if:
Expert tip: Conduct an annual “document audit.” Store all estate documents securely in both physical and digital formats to ensure easy access.
Gather all relevant documents—wills, trusts, insurance policies, deeds, and financial statements. Review them for accuracy and consistency. Identify missing signatures, unclear clauses, or outdated details.
Estate law is complex. Working with professionals ensures that updates are valid and that you’re taking advantage of current financial strategies such as:
Open conversations prevent future misunderstandings. Inform your executors, beneficiaries, and family members where documents are stored and who to contact in emergencies. Transparency is a key element of successful estate management.
Modern estate planning must include digital property. Examples include:
List all digital assets in a secure inventory. Include usernames, access instructions, and specify who has the right to manage each account.
Expert tip: Use password management tools or encrypted cloud storage to protect sensitive login information.
Always destroy or mark outdated versions of your estate documents. Multiple versions can create legal disputes if they contain conflicting instructions.
Your executor and beneficiaries should always know about significant updates. Keeping them in the dark can delay estate administration and create unnecessary confusion.
Neglecting digital accounts can result in lost assets or privacy risks. Always ensure digital instructions are updated and accessible to your executor.
An estate plan isn’t something you complete once and forget. It’s a living framework that should evolve alongside your life. Reviewing it every three to five years—or sooner after major events like marriage, relocation, or financial growth—ensures your intentions remain clear and legally protected.
Think of your estate plan as a dynamic safety net: with regular updates, it will continue to protect your family, your wealth, and your legacy for years to come.
An estate plan is a set of legal documents that outline how a person's assets and wishes will be managed or distributed after their death.
A beneficiary is a person or entity designated to receive assets or benefits from a will, trust, or insurance policy.
A power of attorney is a legal document that allows one person to act on behalf of another in legal or financial matters.
Probate is the legal process through which a deceased person's will is validated and their estate is administered.
Digital assets are any online accounts or files that have value, such as cryptocurrencies, social media accounts, and digital photos.
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