Life changes, and so should your estate plan. Major events—like marriage, divorce, the birth of a child, or changes in financial status—can all impact how your assets should be managed and distributed. If you don’t update your estate plan to reflect your current wishes, it could create unnecessary complications for your loved ones down the road.
The good news? You have the power to keep your plan aligned with your goals. Regularly reviewing and making adjustments ensures your legacy is protected and your intentions are clear. If you haven’t taken a fresh look in a while, here are seven signs it’s time to update your estate plan and keep everything on track.
1. Big Life Changes Have Shaken Things Up
Life has a way of throwing curveballs. Whether it’s something joyful or challenging, major life events often mean your estate plan needs a little TLC. Here’s when you should take another look:
- You Got Married (or Divorced): Marriage brings new financial and personal commitments. Divorce? You’ll likely want to update your plan to avoid leaving assets to an ex.
- There’s a New Kid on the Block: A new child or grandchild is a wonderful reason to revisit your estate plan. This ensures they’re included in guardianship provisions and inheritance plans.
- You Lost Someone Important: If a key person in your estate plan, like a beneficiary or trustee, passes away, it’s time to make adjustments to reflect this loss.
2. Your Finances Have Changed—A Lot
A significant shift in your financial situation is another clear signal to review your estate plan. For example:
- You’re Suddenly Wealthier: Maybe you sold a business, inherited a fortune, or struck gold with an investment. These changes can have big tax implications, so it’s crucial to revisit your plan.
- You’ve Hit a Financial Rough Patch: If your financial picture has changed for the worse, your estate plan might need scaling back to reflect your current situation.
- You Bought New Stuff: Acquiring new assets—like property, a business, or valuable collectibles—means you should add them to your plan to ensure they’re accounted for.
3. Your List of Beneficiaries Has Shifted
The people you care about today might not be the same as when you first created your plan. Here’s when to update:
- Changing Relationships: Maybe you’ve drifted from a friend or family member who was listed as a beneficiary, or you’ve grown closer to someone new.
- Special Needs Emerge: If a beneficiary now has a disability or unique financial needs, you may want to create a special needs trust.
- Adding Charities: Have a cause that’s become near and dear to your heart? Updating your estate plan can help support it.
4. It’s Been Ages Since You Last Looked
If your estate plan hasn’t crossed your mind in years, it’s probably overdue for a review. Estate laws, tax codes, and your own goals can all change over time. Reviewing your plan every three to five years ensures it stays relevant.
- Stay Aligned with Your Wishes: An outdated plan might not reflect your current goals or values.
- Maximize Tax Savings: Frequent updates can help you take advantage of new tax laws or strategies to reduce estate taxes.
- Prevent Surprises: Regular reviews avoid situations where your plan unintentionally leaves assets to the wrong people.
5. Your Executors or Trustees Aren’t the Best Fit Anymore
The people you trust to carry out your wishes might not always be the right choice forever. Consider changes if:
- Their Situation Has Shifted: Maybe your executor or trustee has moved away, aged, or encountered health issues.
- Relationships Have Changed: If you’re no longer close with a chosen person, it might be time to pick someone else.
- A Pro Could Do It Better: In some cases, appointing a professional fiduciary or corporate trustee ensures neutrality and expertise in handling complex estates.
6. You’ve Moved Across State Lines
Relocating to a new state isn’t just a hassle for your boxes—it can shake up your estate plan too. Estate laws vary by state, and your plan needs to align with local rules. Things to check include:
- Will Validity: Each state has specific requirements for wills. Ensure yours meets the new state’s standards.
- Trust Management: Rules for trust administration and taxation differ from state to state.
- Healthcare Directives: Update forms like your healthcare proxy or living will to meet your new state’s legal requirements.
7. You Want to Protect More and Pay Less
An estate plan isn’t just about who gets what—it’s also about safeguarding assets and minimizing taxes. If your plan doesn’t include strategies for asset protection or tax efficiency, it’s time to revisit it.
- Protecting What’s Yours: Tools like irrevocable trusts can shield assets from creditors or lawsuits.
- Reducing Tax Burdens: Changing tax laws mean you could save significantly by updating your plan.
- Strategic Gifting: Annual gifting allowances and other tools can lower your taxable estate while giving your loved ones a financial boost during your lifetime.
How to Update Your Estate Plan- Let’s Get Started
If any of these signs hit close to home, don’t worry—updating your estate plan doesn’t have to be overwhelming. Here’s how Polaris Law Group can make the process simple and stress-free:
Step 1: Let’s Talk
Schedule a consultation with our team. We’ll take the time to understand your life changes and how they impact your estate plan.
Step 2: Tailor Your Updates
We’ll work together to update your plan so it reflects your current wishes, financial situation, and family dynamics. No cookie-cutter solutions here—it’s all about you.
Step 3: Review and Refresh
Once your updates are complete, we’ll guide you through signing and notarizing your documents. We’ll also recommend regular check-ins to keep your plan future-proof.
Keep Your Plan as Dynamic as Your Life
Your estate plan is more than just a legal document—it’s a reflection of your life and the legacy you want to leave behind. By staying proactive and revisiting your plan when needed, you’ll ensure it works exactly as you intend.
At Polaris Law Group, we’re here to make sure your estate plan evolves with you. Ready to get started? Contact us today and let’s update your estate plan so it’s as dynamic as your life.