How Often Should I Update My Estate Plan? Keeping Your Legacy Current

Creating an estate plan is a crucial step in securing your legacy and protecting your loved ones. But it’s not a one-and-done task. Life is dynamic, filled with changes both big and small. To ensure your estate plan continues to reflect your wishes and circumstances, regular updates are essential.

Let’s explore when and why you should revisit your estate plan, and how our personalized approach can help keep your legacy current.

The General Rule: Review Every 3-5 Years

As a general guideline, we recommend reviewing your estate plan every three to five years. This regular check-in allows you to:

1. Reflect on any changes in your personal or financial situation
2. Consider how recent life events might impact your wishes
3. Ensure your plan still aligns with your long-term goals and values
4. Address any changes in estate law that might affect your strategy

However, life doesn’t always follow a neat timeline. There are certain pivotal moments when an immediate review of your estate plan is crucial, regardless of when your last update occurred.

Life Events That Trigger an Estate Plan Update

1. Changes in Marital Status

Getting married, divorced, or remarried can significantly impact your estate plan. These life events often necessitate changes to beneficiary designations, asset distribution, and sometimes even the structure of your plan.

• For newlyweds: You’ll likely want to add your spouse as a beneficiary and potentially as your healthcare proxy or power of attorney.
• For those going through a divorce: Removing an ex-spouse from your will and updating beneficiary designations is crucial to ensure your assets are distributed according to your new wishes.
• In cases of remarriage: Balancing the needs of a new spouse with obligations to children from a previous marriage often requires careful planning and potentially the use of trusts.

Our attorneys can help navigate these sensitive situations, ensuring your estate plan reflects your new family dynamics while minimizing potential conflicts.

2. Expanding Family

Welcoming new children or grandchildren into the family is a joyous occasion that also calls for an estate plan review. You’ll want to:

• Name guardians for minor children
• Adjust asset distribution to include new family members
• Consider setting up trusts for education or other specific purposes
• Review and update beneficiary designations on life insurance policies and retirement accounts

Our personalized approach takes into account your growing family’s unique needs, helping you create a plan that provides for everyone you love.

3. Major Financial Changes

Significant shifts in your financial situation, whether positive or negative, should prompt a review of your estate plan. This includes:

• Receiving an inheritance
• Selling or acquiring a business
• Purchasing or selling significant property
• Major changes in your investment portfolio

These financial changes may impact your tax situation, necessitate new asset protection strategies, or simply change how you want your assets distributed. Our experienced team can help you navigate these complexities, ensuring your estate plan evolves alongside your financial reality.

4. Health Diagnoses

A significant health diagnosis for you or a loved one can dramatically alter your estate planning needs. You might need to:

• Revisit your healthcare proxy and living will
• Consider long-term care planning
• Adjust asset distribution to account for increased medical expenses
• Explore options for special needs trusts if applicable

Our compassionate attorneys understand the emotional weight of these situations and can guide you through the necessary updates.

5. Changes in Tax Laws

Estate tax laws can change with new administrations or shifting political landscapes. While we stay on top of these changes, it’s important to review your plan when significant legal shifts occur to ensure it remains tax-efficient and compliant.

Signs Your Estate Plan Might Need an Update

Even if you haven’t experienced a major life event, there are some signs that it might be time to revisit your estate plan:

• You can’t remember what’s in your current plan
• Your children have reached adulthood
• You’ve moved to a different state
• Your appointed executors or trustees are no longer appropriate (due to age, health, or changed relationships)
• Your assets have changed significantly in value (either increasing or decreasing)
• You want to change your beneficiaries
• You’re approaching retirement age

If any of these situations apply to you, it’s worth scheduling a review with our team to ensure your plan still meets your needs.

The Risks of an Outdated Estate Plan

Failing to update your estate plan can have serious consequences:

• Assets may not be distributed according to your current wishes
• You could miss out on tax-saving opportunities
• Outdated healthcare directives might not reflect your current preferences
• Your loved ones could face unnecessary stress and potential legal battles

By keeping your plan current, you protect both your legacy and your family’s well-being.

Our Approach to Estate Plan Updates

At Cary Estate Planning, we understand that reviewing and updating your estate plan can feel overwhelming. That’s why we’ve developed a personalized, client-focused approach to make the process as smooth as possible:

1. Regular Check-Ins: We proactively reach out to our clients every few years to schedule a review, ensuring nothing falls through the cracks.
2. Life Event Notifications: We encourage our clients to contact us when major life events occur, so we can quickly assess if updates are needed.
3. Comprehensive Review Process: During each review, we thoroughly examine every aspect of your plan, from asset distribution to tax implications, ensuring no detail is overlooked.
4. Clear Communication: We explain any recommended changes in plain language, ensuring you understand the reasoning and implications of each update.
5. Efficient Updates: When changes are needed, we strive to implement them quickly and efficiently, minimizing disruption to your life.
6. Continuous Education: We keep our clients informed about changes in estate law that might affect their plans, empowering you to make informed decisions about your legacy.

The Value of Professional Guidance

While it’s possible to make minor updates to your estate plan on your own, working with experienced estate planning attorneys ensures that your plan remains comprehensive, legally sound, and aligned with your overall goals.

Our team stays up-to-date on the latest legal developments, tax strategies, and estate planning techniques. We bring this experience to every client interaction, helping you navigate complex decisions with confidence.

Moreover, our personalized approach means we take the time to understand not just your assets but your values, family dynamics, and long-term vision. This holistic understanding allows us to suggest updates and strategies that truly reflect your wishes and circumstances.

Start with a Discovery Call

If it’s been a while since you’ve reviewed your estate plan, or if you’ve experienced any significant life changes, now is the time to ensure your plan is up-to-date. Don’t leave your legacy to chance.

Contact our attorneys at Cary Estate Planning today to schedule a Discovery Call. Our attorneys will take the time to understand your current situation, review your existing plan, and recommend any necessary updates. Together, we’ll ensure that your estate plan continues to protect what matters most to you, adapting and evolving as your life does.

Remember, regular updates to your estate plan aren’t just about maintaining legal documents – they’re about preserving your legacy and providing peace of mind for you and your loved ones. Let’s work together to keep your plan current, comprehensive, and aligned with your vision for the future.