When was the last time you reviewed your will? Life changes fast—and so do the laws that govern your estate. A will that was perfect five years ago might not protect your loved ones today. In this post, we’ll cover how often you should review your will, why legal changes matter, and the key triggers that signal it’s time for an update. Whether you’re planning for peace of mind or avoiding costly mistakes, these tips will help keep your estate plan current and effective.
Congratulations, you’ve just completed your estate plan. The documents are signed, notarized, and securely stored, available for when you need them. Enjoy the feeling that comes from knowing you’ve taken prudent steps to ensure that your wishes will be carried out, and your loved ones will be cared for.
But then life goes on. In the years following completion of your estate plan, you may experience significant changes in your circumstances. In addition, the laws that bear on your estate plan may change. But the documents you prepared stay the same. It is easy to forget about your will, power of attorney, advance medical directive, and similar documents in the day-to-day activity of life. But there may come a time when these documents are put into action, only to find that the subsequent changes have made the documents ineffective or irrelevant.
So, let’s look at when review of documents such as your will may be needed, and how to stay on top of this with a minimum of hassle.
Life Changes That Trigger Updates
Significant life changes often trigger a need to change provisions in your will. If you become married or divorced, this will necessarily have a major effect on how your estate is distributed. Likewise, the birth of children and grandchildren typically will change how you want your assets to be handled after your passing, particularly if any of these descendants have special needs.
In the coming years you may also see major changes to your assets. You may find yourself with significantly more money and property than you expected. And though we hope not, the opposite may happen as well. If the change in your net worth is big enough, it may trigger a need to reconsider your approach to tax planning and avoiding probate.
Another common life change that can affect your will and estate plan is moving to another state. Do the tax laws of the new state change what was previously a sensible plan into something that is unworkable or that harms your beneficiaries?
In short, as your life changes, the plan for the end of your life may need to change as well.
Legal Changes That Affect Your Will
In addition to life changes, states and the federal government can make changes to the law that may affect your will. Take federal estate tax law for example. Over the past 20 years, between inflation adjustments and major tax law amendments, the federal estate tax exemption has changed 14 times. State legislatures add another layer of complexity as they can make changes to their estate tax laws.
Beyond changes to estate and inheritance taxes, laws governing life insurance and retirement funds can change in ways that may override or frustrate the provisions in your will. And changes to the eligibility requirements for government aid programs such as Medicaid can alter the calculation for how much you leave to your designated beneficiaries, and when.
You may not be closely monitoring changes in the law from day to day, so it is easy for these changes to sneak up on you when it is too late to do anything about them.
A Simple System for Regular Reviews
Since none of us want to obsess over our wills and estate plans every day, it makes sense to develop a system for reviewing your estate plan at regular intervals. That way, you know that these issues will be taken care of without you having to constantly hold this as a “to-do” in the back of your mind.
Here is a simple system for periodic review of your estate plan:
- Annual Quick Check: Set a calendar reminder for yourself to do a quick check of your estate plan documents once a year. The first Monday of the new year can be a great time to do this. Ensure that your documents are still in a secure but accessible place and give them a quick read to see if anything jumps out at you.
- Comprehensive Review Every 3–5 Years: Every three to five years, during the time you already set aside on your calendar, schedule a more in-depth review of your estate plan with an attorney. Most will do this for a reasonable fee. This allows you to be sure that you haven’t missed any significant changes to the law.
- Immediate Review After Major Life Events: If you experience a significant life event (marriage, divorce, winning the lottery, etc.), schedule time with an attorney to discuss what changes make sense for your estate plan.
Peace of Mind
With a system along the lines described above in place, you can enjoy a continued feeling of security, knowing that you have not only put a prudent plan in place, but you also have done what is needed to keep that plan in good shape.
The Law Office of Levi Jones is ready to provide an in-depth review of your estate plan documents. Please feel free to reach out for a consultation.