When Should You Update Your Estate Plan?

"When is the last time you updated your estate plan?" I asked.

My client paused for a moment.

"I think it was a few presidents ago... Maybe Bush was in office."

I smiled. "Which one?"

We both laughed, but the conversation highlighted a common reality: many people create an estate plan, put it safely in a drawer, and don't think about it again for years (or even decades).

Estate planning is not a one-time event. Like your family, finances, and goals, your estate plan should evolve over time. While every situation is different, there are several common life events that should prompt a review of your documents.

Marriage or Divorce

Marriage, divorce, or remarriage often changes how you want your assets distributed and who you trust to make financial and medical decisions on your behalf. Beneficiary designations and fiduciary appointments should also be reviewed.

The Birth or Adoption of a Child

Welcoming a child into your family is one of the most important reasons to revisit your estate plan. Parents should consider guardianship provisions, trusts for minor children, and who would manage assets if something unexpected were to happen.

A Death in the Family

If someone named in your documents has passed away—whether a beneficiary, executor, trustee, or agent under a power of attorney—it's important to review your plan to determine whether changes are appropriate.

Significant Changes in Assets

Starting or selling a business, receiving an inheritance, purchasing real estate, or experiencing substantial investment growth can all affect your planning goals.

An estate plan that made sense when your estate was worth $300,000 may not be the best fit after years of financial growth.

Moving to Another State

Although many estate planning documents remain valid after a move, every state has its own laws governing wills, powers of attorney, health care directives, probate, and trusts.

A review after relocating can help ensure your documents continue to accomplish your objectives.

Changes in Tax or Estate Planning Laws

While most people do not need to constantly revise their plans because of changes in the law, significant legal developments occasionally warrant a review with your attorney.

It's Been Several Years

Even if nothing significant has changed, I generally recommend reviewing your estate plan every three to five years.

Sometimes the review confirms that everything is still appropriate. Other times, it identifies small updates that can prevent larger problems in the future.

Estate Planning Is an Ongoing Conversation

One of the biggest misconceptions about estate planning is that once the documents are signed, the process is over.

In reality, your estate plan should grow with you. Families change. Assets change. Relationships change. Your estate plan should reflect those changes.

If it's been several years since you've reviewed your documents—or if you find yourself answering "Maybe Bush was in office" when asked about your last update—it may be time for a conversation.

About Terry Law

Terry Law assists individuals and families with estate planning, estate and trust administration, business planning, and related legal matters throughout Alabama, Mississippi, and Tennessee.