How Often Should I Update My Estate Plan?

Estate planning is not something you can set and forget. As life evolves, so should your estate plan. Major life events, financial changes, and updates in laws can all impact the effectiveness of your plan, potentially leading to unintended consequences if left outdated.

Failing to update your estate plan could result in assets going to the wrong people, outdated executors handling your affairs, or missed opportunities to minimize taxes. But how often should you review and revise your documents? While a general guideline is every three to five years, certain life events and legal changes may require more immediate updates.

Major Life Events That Require an Estate Plan Update

Certain life events can significantly impact your estate plan, making it essential to review and update your documents. Here are some key situations that should prompt an immediate revision.

Marriage or Divorce

Getting married means integrating your spouse into your estate plan, whether by updating beneficiary designations, adjusting asset distributions, or granting power of attorney. We also recommend updating your plan upon divorce.  While under Texas law, provisions in your will that relate to a divorced spouse, such as beneficiary, executor, and trustee designations, are automatically revoked, relying on automatic revocation could still lead to unintended consequences.

Birth or Adoption of a Child

Welcoming a new child into your family is a critical time to update your estate plan. You may need to designate a guardian in case something happens to you and set up a trust to provide for their future financial needs. Without these provisions, the court may decide who cares for your child and how your assets are managed.

Death of a Beneficiary or Executor

If someone named in your estate plan—such as a beneficiary, executor, or trustee—passes away, their role may need to be reassigned. Failing to update your documents could cause delays in distributing your assets or leave critical financial decisions in the hands of someone who is no longer available or desired.

Significant Financial Changes

Your estate plan can be impacted by a major increase or decrease in wealth, the acquisition or sale of significant assets, the start of a business, or the receipt of an inheritance.

Relocation to Another State

Estate planning laws vary from state to state, so moving to a new state may require modifications to your will, trusts, and powers of attorney. Certain state-specific regulations, such as probate laws and tax structures, may impact how your estate is handled if you don’t adjust your documents accordingly.

Regular Updates Keep Your Estate Plan Effective

Even if you have not experienced a major life event, you should review and update your estate plan at least every five years. Financial institutions may reject outdated documents, especially powers of attorney, if they are considered too old. Regular updates help ensure your plan remains legally valid and enforceable. Additionally, reviewing beneficiary designations annually is a smart practice, as outdated information can cause delays or disputes in asset distribution. Keeping your plan current ensures that your wishes are carried out smoothly and that your estate avoids unnecessary complications when the time comes to execute your documents.

Reach Out to Discuss Updating Your Estate Plan

At J. Nichols Law, PLLC, we understand how your priorities can change over time. Contact us to discuss your options when it comes to updating your estate plan.