It's important to regularly review your estate plan to ensure it still aligns with your wishes and current life circumstances. Most experts recommend reviewing your estate plan every 3-to-5 years. Over time, your life situation may change - you may have gotten divorced, married, had children, or acquired new assets. Additionally, laws and regulations surrounding estate planning are subject to periodic updates. Failing to review your plan could mean it no longer reflects your current intentions or complies with the latest requirements. Here are a few recommendations on what to look for during your review.
Top line issues include recent changes to your residency and living situation, changes in law or regulations around estate planning, and sharing where your estate plan is kept. Someone needs to be able to find it easily after your passing. So if you have moved, especially to another state, or bought or sold a primary residence, it’s a good time to review your estate plan. The same goes for those pesky changes to laws and regulations around estate planning. For example, California enacted Prop 19 back in 2020 and I still encounter people unaware of the changes it brought to transfer and taxation of inherited properties.
Crucial documents that need to be reviewed are your general power(s) of attorney, health care proxy, and your will and living will (if you have both). Many times we forget who we listed as an executor or trustee, or what type of health care we wanted at the time we made our will. If you have someone named as an executor you are no longer in contact with, or worse, the executor died, you will need to update immediately. What about health care? Do you still want that DNR on file, or would you like a chance to live longer? These are key points in crucial documents to consider.
Any and all trusts need to be reviewed. Are your assets in alignment with what your estate plan lays out and is the trust selected still valid? Do you need to revise the trust agreement or possibly even the type of trust?
Your estate plan is a critical set of documents that outline how you want your assets distributed and affairs handled after you're gone. Your plan also outlines your care and wishes so there is no confusion. Taking the time to review it periodically helps guarantee your final wishes are honored and your loved ones are provided for. Don't leave this important task unattended - review your estate plan with care and leave a loving, lasting legacy.
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