Legal and Practical Tips for Updating Your Estate Plan Regularly

Regular Updates Ensure Your Wishes Are Respected

People frequently make the mistake of thinking that creating an estate plan is a “one-and-done” process. In reality, periodically reviewing and updating your documents is essential. Failing to do so could lead to disputes and even partial intestate succession during the probate process. Fortunately, there are legal and practical tips for updating estate plans regularly.

These tips offer a variety of advantages. Most importantly, they ensure that your estate plan reflects your current circumstances and wishes. Regular reviews will also help avoid the common mistake of not including newer properties and accounts in your estate documents. With a few simple strategies, you can minimize the likelihood of surprises.

Review Your Estate Plan After Major Life Events

Periodic reviews of your estate plan are an important aspect for securing your future. However, there are certain events that should trigger an immediate review and update. These events are so life-altering that it would be surprising if a change in your plans wasn’t warranted. Such changes include, but are not limited to: 

• Marriage or divorce 
• Birth or adoption of a child 
• Death of a family member or beneficiary 
• Significant changes to your financial situation (e.g., newly acquired/sold assets) 
• Relocation to a different state 
• Changes in tax laws 

All these situations will likely warrant a change to your estate documents. Some of these might seem obvious – such as a divorce, birth, or death. However, others might not be as clear. For instance, you may wonder why relocating would warrant a change. As it turns out, every state has different laws. This means a will that’s fine in one state may be invalid in another. 

These events are significant, so always review your plans when they happen. 

Conduct Periodic Reviews

Imagine a scenario where your life is fairly set in stone. Perhaps you’re married, living in your dream home, and have no plans to move or have children. Certain events could still trigger the need for an estate plan review, but even if such events never occur, conducting a thorough review of your plans every 3-5 years is still important.

During this review, you should check that all key documents remain legally valid and reflect your current intentions. If your financial situation is particularly complex, you should consider conducting these reviews yearly. The simple fact is that seemingly insignificant changes in your life could warrant an update, and changes to state law could make such an update critical.

Don’t think everything is fine just because your current circumstances have not changed much.

Updating Key Legal Documents

All the legal and practical tips for updating your estate plan regularly mean nothing if you don’t update all relevant documents. Many people who do conduct regular reviews only focus on their will. While this document is certainly important, it’s far from the only essential estate plan document. Each of the following needs to be updated in specific ways: 

• Will: Ensure asset distribution and executor choices are current
• Trusts: Modify trust terms to account for life changes
• Power of Attorney: Verify that your appointed agent is still capable and trusted
• Healthcare directive: Ensure your preferences and emergency contacts are current
• Beneficiary designations: Review retirement accounts, insurance policies, and payable-on-death accounts

Many people are surprised to learn just how complex their estate plans truly are. They believe that creating a will and incapacity planning are straightforward processes that require minimal maintenance. However, the breadth of estate planning requirements should make it clear that having an attorney draw up these documents is only the first step in the process. 

Updating your estate plan regularly might not require 24/7 monitoring, but being thorough is an absolute necessity when the time comes for a review. 

Include Digital Assets

Up until recent years, digital assets were not even a major concern for most people. However, this has certainly changed in recent times. You can now handle everything from banking to buying and selling stocks online. What once would’ve taken hours of phone calls or visits to local institutions can now be done almost instantaneously via smartphone apps.

For those who didn’t think of this or who created their estate plan before accruing digital assets, an update is certainly in order. You should document usernames, passwords, and access details for all your online accounts. Specify who you want to have control over these accounts and how you want them to be managed.

Explain Your Choices to Family and Beneficiaries

The best legal and practical tips for updating your estate plan regularly can ensure your wishes are known. However, they can’t prevent disputes from arising. If someone is unhappy with your estate plan after you die, it’s possible that they can challenge its provisions. This potentiality becomes far more likely when a lack of communication exists.

The simple fact is that family dynamics are complicated. If you make changes to your estate plan, it could result in certain individuals feeling favoritism or left out. This is why all estate planning decisions should be discussed with loved ones who will be directly affected. Let them know your reasoning, and this could make them more comfortable with your decision.

Work With a Legal Professional

Reviewing and updating your estate plan is almost as important as creating the plan in the first place. If you want to simplify each of these processes and minimize the potential for problems, it’s typically advisable to work with an estate planning attorney. A legal professional can review the entirety of your situation and create a plan that protects your wishes.

When creating a will or any other estate document, a legal professional can ensure its validity and advise you on when updates may be necessary. An experienced attorney can also conduct periodic reviews and let you know how certain updates will affect your overall estate plan. Since some law firms charge flat fees, you can have peace of mind without “sticker shock.”

At Cava & Faulkner, our team of legal professionals provides the legal and practical tips you need for updating your estate plan. Contact us at 916-831-7565 for your free consultation.