Why You Should Update Your Estate Plan RegularlyJune 27, 2025

Creating an estate plan is a vital step toward protecting your family, preserving your wealth, and ensuring your wishes are honored. But once it’s written and signed, your work isn’t done. Estate planning isn’t a one-time event—it’s an ongoing process that requires periodic attention and updates.

Life doesn’t stand still. Relationships change. Assets grow or shrink. Tax laws evolve. What made sense five years ago may not be suitable today. An outdated estate plan can create confusion, increase tax liabilities, and leave your family with legal headaches at the worst possible time.

This article explains why updating your estate plan is just as important as creating one in the first place. You’ll learn what triggers a review, which documents to revisit, and how to keep your estate plan aligned with your goals and current laws.

What an Estate Plan Covers (And Why It Needs Maintenance)

An estate plan is a collection of legal documents designed to manage your assets and healthcare decisions if you become incapacitated or pass away. Core components typically include:

• A last will and testament
• One or more trusts
• Financial power of attorney
• Healthcare power of attorney and living will
• Beneficiary designations on accounts
• Guardianship designations for minor children

These documents work together to direct how your assets are distributed, who manages your estate, who cares for your dependents, and how medical decisions are handled.

But even the best estate plan can become outdated if it doesn’t reflect your current life circumstances. Over time, your financial situation changes, relationships evolve, and the legal environment shifts. If your plan doesn’t adapt, it may no longer achieve your intended outcomes.

Major Life Events That Require an Estate Plan Update

Certain life events demand an immediate review of your estate documents. These changes can impact who your beneficiaries should be, who will serve as fiduciaries, and how your assets should be managed or distributed.

Marriage or Divorce

Getting married may involve combining estates, updating beneficiaries, and creating protections for a new spouse. Divorce, on the other hand, usually requires removing a former spouse from key roles and documents to avoid unintended inheritance or control.

Birth or Adoption of a Child

When you welcome a new child or grandchild, your estate plan should reflect that. You’ll want to name a legal guardian, adjust trusts or inheritance terms, and ensure the child is provided for financially.

Death of a Beneficiary or Fiduciary

If someone named in your will, trust, or power of attorney passes away or becomes unable to serve, their role needs to be reassigned. Failing to do this can create gaps or delays in your estate administration.

Significant Financial Changes

Whether you’ve sold a business, inherited assets, invested in real estate, or experienced a loss of wealth, changes in your net worth should prompt an estate plan review. Your asset allocation, distribution plans, and tax exposure may shift significantly.

Retirement or Sale of a Business

Retirement often changes your sources of income and the structure of your estate. Selling a business can convert illiquid assets into liquid ones, which may change how you approach legacy planning and tax strategy.

Relocating to a New State

Estate laws differ from state to state. A move may require revisions to your will, powers of attorney, and other documents to ensure they comply with your new state’s laws. Local probate rules, tax laws, and healthcare regulations must be considered.

Legal and Tax Changes That Impact Your Estate Plan

Laws that affect estate planning are constantly evolving. Even if your personal life remains stable, your plan could be outdated due to shifts in tax codes or estate rules.

Federal Estate and Gift Tax Laws

The federal estate tax exemption is subject to legislative change. In 2024, it stands at $13.61 million per individual, but this amount is set to reduce significantly in 2026 unless new legislation extends it. Such changes could expose more estates to taxation, requiring proactive planning.

State-Specific Estate and Inheritance Taxes

Some states impose their own estate or inheritance taxes with much lower exemption thresholds. Moving into or out of one of these states should trigger a comprehensive estate plan review to avoid unintended tax exposure.

SECURE Act and Retirement Planning Laws

The SECURE Act changed how beneficiaries inherit retirement accounts like IRAs and 401(k)s. Most non-spouse beneficiaries must now deplete inherited accounts within 10 years, which can create unexpected tax burdens. Your plan should account for these new rules.

Key Documents and Elements to Review and Revise

When reviewing your estate plan, focus on the documents and provisions that directly affect control, distribution, and protection of your assets.

Wills and Trusts

Are your assets still titled correctly? Do your instructions still reflect your wishes? Has the value of any bequest changed significantly? Trusts, in particular, should be reviewed for tax efficiency and legal compliance.

Beneficiary Designations

These apply to life insurance policies, retirement accounts, and payable-on-death (POD) bank accounts. They override your will, so it’s essential that they are up to date and aligned with your overall plan.

Powers of Attorney and Healthcare Directives

Ensure that your appointed agents are still willing and capable of serving. If someone has moved, aged, or had a falling out with you, their role should be reassigned.

Guardianship Designations

If your children are minors or have special needs, ensure your chosen guardian is still the best choice and that they are aware of the responsibility.

Business Succession Documents

If you own a business, review your succession strategy, buy-sell agreements, and control provisions. An outdated business plan can cause chaos for your family and partners.

Risks of Not Updating Your Estate Plan

Failing to review your estate plan can lead to serious consequences.

Unintended Beneficiaries

Old documents may leave assets to ex-spouses, deceased relatives, or individuals no longer close to you. This often leads to disputes or legal challenges.

Probate Delays and Legal Challenges

Ambiguities or contradictions in outdated plans can trigger court battles, slow probate proceedings, and increase costs for your estate.

Unnecessary Taxes

Without proper planning, your estate could miss opportunities to minimize estate or income taxes, leaving more to the government and less to your heirs.

Family Conflict and Uncertainty

If your plan doesn’t reflect your current family dynamics, tensions and misunderstandings may arise. Clear, current documents reduce the risk of intra-family disputes.

How Often Should You Review Your Estate Plan?

Experts recommend a full review of your estate plan every three to five years under normal circumstances. However, you should also schedule a review immediately after:

• Marriage, divorce, or remarriage
• Birth or adoption of a child
• Death of a spouse, beneficiary, or fiduciary
• Major change in asset value
• Relocation to another state
• Retirement or business transition
• Any change in federal or state estate tax laws

You can use a checklist approach to periodically self-audit your plan, but always involve professionals for significant revisions.

Working with Professionals to Keep Your Plan Current

Estate planning is not a DIY process. Laws are nuanced, and your personal circumstances may require advanced strategies.

A well-rounded team includes:

• An estate planning attorney to draft and revise documents
• A tax advisor or CPA to handle compliance and tax efficiency
• A financial planner to coordinate asset management and retirement goals
• A business advisor, if you own a company or family business

These professionals can help you:

• Review titling and ownership of assets
• Ensure beneficiary designations match your plan
• Coordinate strategies for tax reduction
• Keep your documents compliant with current law

Though there’s a cost to updating your plan, the cost of not doing it is often far greater—in legal fees, taxes, and family strife.

Frequently Asked Questions

How do I know if my estate plan is outdated?
If you’ve experienced major life changes, haven’t reviewed your plan in over five years, or if laws have changed since your last update, your plan is likely outdated.

Can I make updates without a lawyer?
Minor updates like changing beneficiaries on accounts can be done without a lawyer. But for most legal documents, especially wills and trusts, professional assistance is essential to avoid mistakes.

Do I need to update my estate plan if I move to another state?
Yes. State laws vary on probate, taxes, and healthcare directives. Moving across state lines should prompt a full review of your estate documents.

What happens if I don’t update my beneficiary designations?
Assets may go to someone you no longer intend, such as a former spouse. These designations override your will and should be regularly reviewed.

How much does it cost to update an estate plan?
Costs vary depending on complexity, but a basic review and update can range from a few hundred to a few thousand dollars. For complex estates, the cost is well worth the protection it provides.

Conclusion

Your estate plan should evolve as your life does. While creating a plan is an important milestone, maintaining it is what protects your legacy.

Family dynamics change. Asset portfolios shift. Laws are rewritten. Without regular updates, your estate plan may no longer reflect your values, protect your loved ones, or comply with current regulations.

By reviewing your estate plan every few years—or after major life or legal changes—you ensure your intentions are respected, your taxes are minimized, and your heirs are protected. Don’t wait for a crisis to find out your plan no longer works. Take control now, keep your plan current, and safeguard your future.

Please contact Lynn Conover at lconover@curchin.com with any additional questions or feedback regarding Estate Planning.