How Often Will I Need to Update My Plan?

Share this post

Once you have established your estate plan, make sure it stays sound by revisiting it at regular intervals or at key life events.

Many people review their estate plan at a regular frequency, often when they review their whole financial plan. This can be done annually, semi-annually, or quarterly; for estate planning specifically, the general recommendation is at least every three to five years or when there is a life event. You may want to get your attorney or tax advisor’s help. But how do I know it is time to update my plan?

Life Events that Warrant Updating Your Estate Plan

  • The birth or adoption of a new child or grandchild
  • When a child or grandchild becomes an adult
  • When a child or grandchild needs educational funding
  • Death or change in circumstances of the guardian named in your will for minor children
  • Changes in your number of dependents, such as the addition of caring for an adult
  • Change in your or your spouse’s financial or other goals
  • Marriage or divorce
  • Illness or disability of your spouse
  • Change in your life or long-term care insurance coverage
  • Purchasing a home or other large asset
  • Borrowing a large amount of money or taking on liability for any other reason
  • Large increases or decreases in the value of assets, such as investments
  • If you or your spouse receives a large inheritance or gift
  • Changes in federal or state laws covering taxes and investments
  • If any family member passes away, becomes ill, or becomes disabled
  • Death or change in circumstance of your executor or trustee
  • Career changes, such as a new job, promotion, or if you start or close a business

Update my plan? Reviewing your plan at regular intervals in addition to major life events will help ensure that your legacy, both financial and otherwise, is passed on in accordance with your wishes and that your beneficiaries receive their benefits as smoothly as possible.

Estate Plans need review and updating for many reasons. Depending on the complexity of your plan, you should review your plan each year to make sure the details of the plan have not changed. Details include such things as: asset rate of return, business growth, lifestyle income need, retirement date, and so forth. As financial or family circumstances change, your plan needs to be updated. You will need to communicate these changes to your advisory team.