3 signs that it is time to update an estate plan

On Behalf of | Jan 20, 2025 | Estate Planning |

People who take the time to create estate plans can protect their loved ones and establish a legacy that has a positive impact on others. The most effective and beneficial estate plans typically include highly-customized terms based on an individual’s resources and family circumstances.

To ensure the usefulness and validity of estate planning documents, testators may need to update them regularly. The following are some of the potential warning signs that it may be time to revisit an estate plan.

Significant changes to the family

Families constantly shift and evolve. People marry and divorce. They have children. Sometimes, family members die. The dynamics within the family can also change over time. People may need to review and update their estate plans to remove a deceased individual, former spouse or estranged child as a beneficiary of the estate. They may also need to replace the people appointed to positions of authority. Changes to the family can make a review of an estate plan and possibly updates beneficial.

Changes in economic circumstances

Estate plans do not just differ based on relationships. They also typically need to accurately reflect the financial circumstances of the testator drafting the documents. When the assets or financial obligations of the testator change, their estate plan may need to change as well. People generally need to update their documents to remove assets they have liquidated or already gifted to others. They may also need to add beneficiary designations for assets that they have acquired. More valuable resources, including businesses and real estate, may require special consideration. People may need to enact plans to keep those assets out of probate court or to prevent their loved ones from fighting over them.

The passing of four or more years

Some changes in life are abrupt. People sell their homes, get divorced or lose a loved one, resulting in major changes for the entire family. Other changes are slow. People drift apart over time. They slowly accumulate more wealth or pay off their debts. Without major precipitating events, it is easy to overlook changes in circumstances that can render estate planning documents less effective. Testators generally need to review their documents at least once or twice a decade, at minimum, to ensure that they still fulfill their intended purpose and properly address the needs of dependents and the wishes of the testator.

Scheduling an appointment to sit down and review estate planning paperwork with a skilled legal team may provide people with enhanced peace of mind in an uncertain world. Accurate, up-to-date documents provide people with support when they are vulnerable and can hold up under scrutiny in probate court.