Creating an estate plan is a significant accomplishment. However, the work doesn’t end when the documents are signed. To help maintain peace of mind and protect the legacy you’ve worked to build, it’s important to periodically review whether your chosen strategy continues to align with your goals.
An estate plan is a living tool that should adapt to changes in your circumstances. Over time, shifts in your family structure, financial situation, health, and residence can all influence your planning objectives. Whether through new births or children reaching adulthood, career transitions or business developments, or changes to investments, health status, or location, numerous factors may affect your evolving planning needs. External factors, such as shifts in tax legislation or emerging financial instruments, could also impact your plan or present new planning opportunities.
You don’t need to spend countless hours worrying about your estate plan. Consider asking yourself these key questions to assess whether your plan may benefit from an update:
- When did you last update your will or living trust?
In many cases, reviewing an estate plan every three to five years can be beneficial, but if a significant life change occurs, it may be wise to take another look sooner. The more time that passes, the more likely circumstances in your life have shifted since your plan was created.
- Whom have you named as executor and trustee?
Are the people you selected to manage your affairs still the right fit? Sometimes people choose a loved one out of obligation, even when that person may not be the most appropriate choice for managing difficult situations. It’s worth considering: Is the person I chose still willing and able to handle this responsibility? Am I confident they understand my values and will act in a way that reflects my wishes?
- Do you have adequate life insurance?
Life insurance can be an effective way to provide for your loved ones (depending on the type of policy) after your death. Rather than purchasing any policy, it’s worth considering whether you have appropriate coverage for your needs, term, whole, or universal, and whether the amount provides sufficient coverage for your family. For each policy, it’s advisable to regularly review and update your beneficiary designations. Each policy should name both a primary beneficiary who receives the proceeds when the primary beneficiary passes and a contingent (backup) beneficiary, in case the primary beneficiary cannot inherit the proceeds.
If you have a trust-based estate plan, your attorney may have recommended naming your trust as a primary or contingent beneficiary. This approach can allow the proceeds to flow directly into your trust, which can then be managed and distributed according to your wishes. Regularly reviewing your beneficiary designations helps support the goal that your life insurance policies will transfer smoothly and according to your intentions, protecting those you’ve provided for and potentially minimizing unintended outcomes.
- Have you reviewed your retirement account beneficiaries?
Much like life insurance, your retirement accounts—such as 401(k)s and IRAs—pass directly to named beneficiaries outside of probate. It’s advisable to review these designations periodically, especially after major life events like marriage, divorce, the birth of a child, or the death of a beneficiary.
Consider whether your current beneficiaries still align with your goals. If you’ve remarried, you may want to update your designations. If children have been born or adopted, you might add them as beneficiaries. These accounts often represent a substantial portion of your wealth, so taking time to verify that the beneficiary designations reflect your current wishes can help avoid potential complications for your loved ones.
- Has your family structure changed?
Life brings both joyful and difficult transitions. Marriages, divorces, births, adoptions, and deaths all impact how your estate plan should function. If you’ve experienced any of these events, reviewing your plan can help verify that it still accomplishes your objectives.
For example, if you’ve married, you may want to include your spouse in your plan. If you’ve divorced, you might choose to remove your ex-spouse as a beneficiary or decision-maker. New children or grandchildren may warrant updates to ensure they’re provided for. Similarly, if a named beneficiary or fiduciary has passed away, you’ll want to designate replacements to avoid potential complications.
- Have you moved to a different state?
Each state has its own laws governing estates, trusts, taxes, and property ownership. If you’ve relocated since creating your estate plan, the laws of your new state may affect how your plan operates. Some documents created in one state remain valid in another, but others may benefit from revision to align with your current state’s requirements.
For instance, if you’ve moved from a common law property state to a community property state like California, the way marital assets are classified and distributed can differ significantly. Similarly, state-specific tax laws, probate procedures, and trust regulations can vary considerably from one jurisdiction to another. Consulting with an attorney familiar with your current state’s laws can help identify whether any adjustments would be beneficial.
- Has your financial situation changed significantly?
Whether your wealth has grown substantially or you’ve experienced financial setbacks, these changes can influence your planning strategy. If your assets have increased, you might explore additional strategies for wealth transfer or asset protection. If your financial circumstances have shifted, you may need to revise distributions or reconsider certain planning techniques.
Additionally, changes in tax laws at the federal or state level can impact your plan. Estate tax exemptions, gift tax rules, and income tax considerations evolve over time. Periodic reviews can help identify opportunities to enhance your plan’s effectiveness in light of current tax regulations.
- Do your healthcare directives reflect your current wishes?
Healthcare directives—including living wills, healthcare powers of attorney, and HIPAA authorizations—communicate your medical treatment preferences if you become unable to make decisions for yourself. As your health status, family relationships, or personal values change, your healthcare wishes may evolve as well.
Review these documents to verify that the healthcare agent you’ve named is still someone you trust to make decisions on your behalf. Consider whether your stated preferences for medical treatment still align with your current beliefs and priorities. Having current healthcare directives can provide clarity for your family during difficult times and help your medical wishes be respected.
Regular Reviews Support Your Planning Goals
An estate plan is most effective when it reflects your current circumstances, relationships, and objectives. While major life events often signal the need for a review, setting a regular schedule—such as every three to five years—can help you stay proactive about maintaining your plan’s relevance.
By periodically assessing these key areas, you can work toward keeping your estate plan aligned with your evolving needs. This ongoing attention can help provide continued peace of mind, knowing that you’ve taken steps to protect your loved ones and honor the legacy you’ve worked to create.
If it’s been several years since you’ve reviewed your estate plan, or if you’ve experienced significant life changes, consider scheduling a consultation to discuss whether updates may be beneficial. Taking time now to review your plan can help support your long-term goals and provide clarity for those you care about most.
Book Your Introductory Meeting Today
Taking time now to review your plan can help support your long-term goals and provide clarity for those you care about most. Meet with our team for 30 minutes to discuss your estate planning, trust administration, or probate needs. We’ll help you understand if we’re the right fit for your situation.
Ready to get started? Call us at (650) 325-8276 or complete our online contact form to schedule your meeting.
