An estate plan is one of the most important documents you can create to ensure your assets are distributed according to your wishes after your passing. However, an estate plan is not a one-time task—it should evolve with your life. Major life events, changes in the law, or shifts in your finances all make it necessary to revisit and update your estate plan. So, how often should you update your estate plan? In this blog, we’ll cover the key factors that should prompt you to review and update your plan.

1. Life Changes: Major Milestones

Your estate plan should reflect any significant milestones in your life. These include major personal events such as:

• Marriage or Divorce: Changes in your marital status can greatly affect how you want your assets divided.

• The Birth of a Child or Grandchild: You may want to update your beneficiaries or appoint new guardians.

• Death of a Loved One: If a key beneficiary or executor has passed, it’s important to make adjustments to ensure your estate is handled according to your wishes.

Why It’s Important:
When major life changes occur, it’s essential that your estate plan reflects these updates to avoid confusion or disputes after your passing.

What You Can Do:
Following any of these life events, review your estate plan to make sure it aligns with your current circumstances. A quick consultation with an estate planning attorney can help guide you through the necessary adjustments.

For more guidance on estate planning during life changes, refer to the American Bar Association.

2. Changes in Your Financial Situation

Your estate plan should reflect your current financial situation. Major changes such as:

• Receiving an Inheritance or Large Asset: If you’ve recently acquired property, a business, or substantial financial assets, it’s time to revise your plan.

• Selling Property or a Business: If you’ve sold significant assets, it’s important to update your plan to account for the changes in your estate.

• Changes in Debt or Liabilities: As debts grow or decrease, it’s essential to adjust how your estate will cover liabilities.

Why It’s Important:
An accurate financial picture ensures that your estate plan is up-to-date and that your assets are distributed according to your wishes. Keeping your estate plan current helps avoid complications with debt settlement or inheritance distribution.

What You Can Do:
Whenever your financial situation changes, review your estate plan to ensure it reflects your current assets and liabilities. A financial advisor, along with your estate planning attorney, can help you update the necessary components of your plan.

3. Changes in Tax Laws

Estate and inheritance taxes are always subject to change. Federal or state tax law adjustments may affect how much of your estate will be taxed after your passing. Changes to tax exemptions or estate tax rules can significantly influence how you should structure your estate plan.

Why It’s Important:
Keeping your estate plan updated in accordance with current tax laws can help you take advantage of tax savings and minimize the burden on your beneficiaries.

What You Can Do:
Stay informed about changes to tax laws that could impact your estate. Schedule regular reviews with your estate planning attorney and financial advisor to ensure your estate plan remains tax-efficient.

For the latest updates on estate tax laws, consult resources from the IRS.

4. Changes in Your Wishes or Relationships

As time goes on, your relationships with family members and friends may change. Similarly, your wishes regarding who should handle your estate or who should receive certain assets may evolve. For example:

• Changes in Relationships: If your relationships with certain individuals change (e.g., a falling out with a family member or a new close friend), you may want to update your beneficiaries or your executor.

• Changes in Your Wishes: You may have new preferences regarding charitable donations, guardianship of children, or who should care for pets.

Why It’s Important:
Your estate plan should reflect your current relationships and preferences. By keeping it updated, you ensure that your estate is handled by the people you trust and according to your wishes.

What You Can Do:
After any significant change in your relationships or personal wishes, consult with your estate planning attorney to make the appropriate updates.

5. How Often Should You Review Your Estate Plan?

While major life events should prompt an immediate review, it’s also a good idea to review your estate plan every 3 to 5 years. A regular check-up ensures that your plan is aligned with your life’s changes and the latest laws.

Why It’s Important:
Regular reviews help ensure that your estate plan remains relevant. Even if nothing major has changed, periodic reviews allow you to stay ahead of potential issues and fine-tune your plan as necessary.

What You Can Do:
Set a reminder to review your estate plan regularly. Consider consulting your estate planning attorney at least every 3 years or after any major life or financial change to ensure that your plan remains up-to-date.

6. When to Contact an Estate Planning Attorney

If you’ve experienced a life change, received new assets, or noticed changes in tax laws, it’s a good idea to contact an estate planning attorney. They will guide you through updating your plan, ensuring that all aspects of your estate are addressed.

Why It’s Important:
An attorney specializing in estate planning will ensure that your plan reflects your current life situation, avoids common pitfalls, and helps you achieve your estate planning goals.

What You Can Do:
Reach out to MHK Attorneys for a comprehensive review of your estate plan. Our experienced team will guide you through any necessary updates and provide expert advice on how to make the most of your estate plan.

Conclusion

Updating your estate plan is essential to ensure that your wishes are fulfilled, your assets are properly distributed, and your loved ones are taken care of. By reviewing your estate plan every few years or after significant life changes, you can be confident that your plan reflects your current situation and provides peace of mind for the future.

If you’re ready to review or update your estate plan, MHK Attorneys is here to help. Contact us today to schedule a consultation and ensure your estate plan is in order.