When Should You Update Your Estate Plan?

Q: How often should an estate plan be reviewed?

Many families review an estate plan every few years and after a major change in family, residence, assets, business ownership, tax law, or personal wishes. The drafting attorney should set the appropriate review process.

Q: What life events can require an estate-plan update?

Marriage, divorce, births, deaths, a move to another state, a business sale, a significant change in wealth, a new charitable goal, or a change in trustees or beneficiaries can all warrant review.

Q: Does an estate plan include more than a will?

An estate plan may include a will, trusts, beneficiary designations, powers of attorney, health-care documents, business agreements, and a plan for how assets are titled and managed. The right documents depend on the family's circumstances and applicable law.

The short answer

Review an estate plan after a major change in family, residence, assets, business ownership, tax law, or personal goals—and periodically even when life appears stable. The review should include legal documents, beneficiary designations, asset titling, liquidity, and the practical ability of the people named to carry out the plan.

Estate planning is not only about what happens at death. Powers of attorney, health-care documents, trusts, business succession, and beneficiary designations can affect the family during incapacity, a move, a liquidity event, or a period when someone needs help managing finances.

Life events that should prompt a review

Marriage, divorce, a birth, adoption, or the death of a beneficiary or fiduciary.
A move to another state or a change in domicile.
A substantial change in wealth, a new business interest, or the sale of a company.
A change in charitable intentions, family relationships, or how beneficiaries should receive assets.
Changes in tax law or in the family's need for liquidity and asset protection.

Check the documents and the assets together

A carefully drafted trust can still fail to accomplish its purpose if assets were never titled correctly. Retirement accounts, life insurance, and transfer-on-death accounts generally pass according to beneficiary forms, not the will. Review those designations alongside the estate attorney's documents and the household balance sheet.

Also check successor trustees, agents under powers of attorney, personal representatives, and guardians. The right choice depends on trust, judgment, availability, state law, and the complexity of the assets.

Plan for business and concentrated assets

Business interests, real estate, private investments, and concentrated stock can require special planning. Consider valuation, liquidity, voting rights, buy-sell agreements, insurance, and how an asset would be managed if a beneficiary receives it. A wealth-transfer strategy may be relevant for some families, but advanced trusts require individualized legal and tax advice.

Documents are only one part of the plan. Keep a practical inventory of accounts, digital access, insurance, advisers, business records, and instructions so the people named in the documents can act when needed.

Coordinate estate strategy with the financial plan

Estate choices can affect investment risk, life insurance, retirement income, charitable giving, and the liquidity available to pay expenses or taxes. A financial advisor can help organize the balance-sheet and cash-flow questions while the estate-planning attorney drafts and interprets legal documents.

Frequently asked questions

How often should an estate plan be reviewed?

Many families review every few years and after a major change in family, residence, assets, business ownership, tax law, or personal wishes. The drafting attorney should set the appropriate process.

What life events can require an estate-plan update?

Marriage, divorce, births, deaths, a move, a business sale, a significant change in wealth, a new charitable goal, or a change in trustees or beneficiaries can all warrant review.

Does an estate plan include more than a will?

It may include a will, trusts, beneficiary designations, powers of attorney, health-care documents, business agreements, and a plan for titling and managing assets.

Keep your plan connected.

A coordinated review can help identify the financial questions to bring to your estate-planning attorney and tax professional.

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Important disclosure: This article is for educational purposes only and does not provide individualized investment, legal, accounting, or tax advice. Estate planning documents and strategies should be prepared and reviewed with qualified legal and tax professionals. Laws and circumstances change. Investing involves risk, including possible loss of principal. No strategy assures success or protects against loss. Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through LPL Financial, a registered investment advisor.