How Often Should You Review Your Estate Plan?

An up-to-date estate plan can provide you and your family with calm and confidence, and isn’t that something we could all use more of? Estate planning isn’t just a one-time, create-and-forget-it document that is stuffed away in a digital file until it’s needed most. Many individuals create an estate plan once and rarely, or even never, revisit it. This can create significant gaps that create confusion, unintended consequences, or even missed opportunities for their loved ones. Life changes, laws and tax rules evolve, and your wishes may look different from what they did when you first created your estate plan. So, why is it important, and how often should you review your estate plan? 

Life Changes – Your Plan Should, Too

Major life events are often the clearest sign that it’s time for a review of your estate plan. Marriage, divorce, the birth of a child, or even the loss of a family member can all significantly impact how your assets should be distributed. Even less obvious changes in life can warrant updates to your plan, such as a new job, a move to another state or country, or a shift in financial priorities. If your estate documents don’t reflect your current wishes or relationships, they may not function as intended when it matters most.

Laws and Tax Rules Don’t Remain Static – They Evolve

Federal and state regulations around estate taxes, gift exemptions, and inheritance rules can and do change. This can mean that what was once an efficient strategy may no longer be optimal or even relevant based on current rules. Regularly reviewing your plan can help to keep it aligned with the current legal landscape and address unnecessary tax burdens. 

Beneficiaries and Account Titling Matter… a Lot!

How your assets are titled and how beneficiary designations are structured are among the most overlooked aspects of estate planning. Regardless of what your will says, your retirement accounts, life insurance policies, and certain investment accounts pass directly to named beneficiaries on these plans. 

Keeping them updated is a simple yet critical step toward carrying out your intentions. 

Trusts and Directives Should Reflect YOUR Wishes

If you have established trusts, powers of attorney, or healthcare directives, it is important to revisit them periodically. Do your instructions still reflect your values and preferences? Are your chosen trustees or decision-makers still the right fit? These documents are designed to guide others during critical moments when you are unable. Clarity and accuracy in the language are essential to giving your beneficiaries the direction you intended.

Team Coordination Can Make a Difference

Is it really that important that you review your estate plan alongside your financial advisor, attorney, and tax professional? You bet it is. Estate planning intersects with your broader financial plan, including your investment strategies, tax planning, and long-term goals for your family or legacy.

Coordinating with all of the professionals on your team will help keep every aspect of your life working together cohesively. 

How Often Should You Review Your Estate Plan?

According to Will O’Rourke, J.D., financial advisor at Prime Capital Financial and an estate planning attorney in North Texas, your estate plan should be reviewed every 3-5 years, or sooner if you experience a major life event. This is simply to keep everything in order, even if no immediate changes are needed during the review process. You may not realize something significant has changed until you check in on your estate plan, so sticking to a regular review schedule adds an additional layer of protection.