Most people establish an estate plan with the hope that it will “do the job” for many years to come. In fact, a good estate plan will be drafted in a manner to provide flexibility to account for foreseeable future life events. To that point, a good plan should take into consideration the births of future children and grandchildren and the acquisition of additional assets. However, some future events cannot be anticipated and for many clients it begs the question, “How often should I review my estate plan?”
I typically advise clients to review their estate plans every three to five years and when major life events occur. When reviewing your estate plan, you should, at a minimum, make sure (1) that the people you have named for particular roles are the people you still want to serve in those roles if the time comes; (2) that your assets, whether specific assets or your assets in general, will pass to the beneficiaries you want to receive them; and (3) that the timing in which the beneficiaries receive those assets is still appropriate.
Other than the typical review every three to five years, it is advisable to review your estate plan when major life events occur. For example, a meaningful change in your financial situation can have an impact on your estate plan and a review of the plan would be prudent to make sure that your assets are passing to the intended beneficiaries in a tax-efficient manner. If you recently got married or divorced, a revision to your estate plan will likely be necessary. Also, if you recently lost a loved one who was named in your estate plan, a review of your plan would help you understand the impact such a loss could have on your plan. If something changes with one of your beneficiaries (e.g., they suffer from a disability or other issue that might prevent them from managing their own assets), you should review your will or trust to determine whether the original disposition to the beneficiary remains appropriate. These are just a few examples that should trigger an immediate review and may require an update of your estate plan.
If you have any questions about your estate plan or would like to review your plan with an experienced estate planning attorney, please do not hesitate to contact me.
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