How often should you update your Estate Plan?
Life is constantly changing—and your estate plan should keep up. Many individuals view estate planning as a one-and-done task, but in reality, it’s a living set of documents that should be revisited and revised over time. Whether it's a shift in your financial circumstances, changes in family relationships, or evolving personal wishes, keeping your estate plan current ensures it always reflects your true intentions.
When Should You Update Your Estate Plan?
Estate plans don’t expire, but they can quickly become outdated. Although there’s no universal timeline for reviewing your estate plan, a good rule of thumb is to revisit your documents every three to five years, or sooner if there are major life events. The following events often indicate it’s time for a review:
(1) Marriage or Divorce
Marriage and divorce are two significant life events that can affect your estate plan. A new marriage may necessitate adding not only your spouse but also other members of your new extended family as beneficiaries or decision-makers. A divorce, on the other hand, often necessitates removing a former partner and possibility their relatives from your estate planning documents. Failing to update your documents after these events can lead to unintended consequences such an ex-family member inheriting assets or making critical decisions on your behalf.
(2) Birth or Adoption of a Child or Grandchild
Welcoming a new child or grandchild into the family is a joyful event that should prompt a thorough review of your estate plan. You may want to add the child as a beneficiary, establish a trust for their benefit, or name a guardian in the event that something happens to you while they are still a minor. If your plan doesn't reflect your current family structure, your intentions may not be carried out as you'd hoped.
(3) Death or Disability of a Beneficiary or Executor
If a named beneficiary, executor, trustee, or guardian passes away or becomes incapacitated, it is essential to revise your plan. You’ll need to appoint new individuals to these roles and possibly redistribute assets if your original plan is no longer viable.
(4) Significant Financial Changes
Major shifts in your financial situation can have a significant impact on your estate plan. If you inherit wealth, purchase a new home, have a substantial change in your income, or retire, you may need to reconsider how you want to distribute your estate.
(5) Relocation to Another State
Moving to a different state may impact the effectiveness of your estate plan due to variations in state laws. A review with an attorney licensed in your new state ensures your plan complies with local law and functions as intended.
(6) Changes in Your Wishes or Priorities
Over time, your values, goals, and relationships may change. You might decide to support a new charity, change how your assets are distributed among beneficiaries, or alter roles like executor or guardian. These personal changes are crucial to assure your assets are distributed according to your current wishes.
Protect Your Legacy with Bluegrass Elderlaw, PLLC
This list highlights key reasons to revisit your estate plan, though it is not exhaustive. Because every situation is unique, it’s essential to consult an attorney to ensure your plan accurately reflects your intentions.
At Bluegrass Elderlaw, updating your estate planning documents is a personalized process. Whether you need to make minor changes or a complete revision, our team is here to guide you every step of the way. We’ll review your current documents, discuss any life changes or new goals, and ensure everything is up to date with Kentucky law and most importantly, your wishes.
Disclaimer: This post is for general informational purposes only. To learn more about updating your estate plan, contact us or call us today at (859) 281-0048.