Once you have drafted your estate plan, it should not be put in a drawer and forgotten. It’s essential to revisit it from time to time to ensure it still reflects your wishes. By conducting a review on a regular basis, you can ensure that your estate plan aligns with your goals and allows you to provide for your loved ones in the way you intend. Updating your estate plan should be a priority when significant life events occur, or there is any change in your family, health, or financial situation.

When Should You Revise Your Estate Plan?

After you have an estate plan in place, it should be reviewed at regular intervals or when any changes occur in your family or financial situation. This can ensure your documents reflect your current wishes and objectives. While it’s best to revisit your will, any trust instruments, beneficiary designations, and powers of attorney at least every few years, there are certain life events that should also trigger a review.

It’s best to consider revising your estate plan under the following circumstances:

• A new child is born or adopted: It’s crucial to revisit your estate plan upon the birth or adoption of a child to name a legal guardian in your will and ensure the child is listed on any beneficiary designations. You can also create a trust to manage your child’s inheritance until they turn 18 or 21 in the event the unexpected occurs.
• Marriage or divorce: If you recently married or divorced, you should review your estate planning documents, especially any powers of attorney or beneficiary designations you have in place.
• Illness or disability: In the event you or your spouse is diagnosed with a serious illness or becomes disabled, it’s essential to revise your estate plan to ensure it still conforms to how you wish your healthcare and financial matters to be handled.
• Significant changes in your financial situation: If you received an inheritance, purchased a property, or started a new business, you may consider updating your estate plan to reflect the changes in your financial situation.
• Your child reaches the age of majority: Once your child turns 18, they are legally an adult and can inherit directly. Your estate plan should be changed to reflect their new legal status.
• Death or incapacity of your executor or trustee: You will need to revise your will and any trusts if your executor or trustee has passed away or become incapacitated.
• Family dynamics have changed: If you have become estranged from a family member who was named in your estate plan, you may want to revise your documents to remove them as a beneficiary.
• Retirement: Retirement and other personal milestones may shift your estate planning objectives.
• Relocation to a new state: If you have moved to another state or acquired property in a different jurisdiction, you should review your estate planning documents to ensure it complies with the new state’s requirements.

In addition, any updates to the tax laws warrant a review of your estate plan. These changes can have a substantial impact on the tax burden your beneficiaries might incur. While the tax laws are constantly evolving, it is crucial to schedule a regular review with an estate planning attorney who can best advise you.

How Often Should You Be Updating Your Estate Plan?

It is generally recommended that you review your estate plan at least every three to five years, unless a major life event or change in the law occurs before this interval. Set a regular schedule for updating your estate plan, such as on New Year’s Day every three years. This makes sure that your estate plan is still accurate and satisfies your goals.

When conducting your review, gather all your documents and go through each one carefully. Review who you have named as your executor, trustees, and beneficiaries to determine whether they are still the right people designated in your plan. Additionally, look through your financial records to determine that you still have the assets, property, and investments you have included in your will and trusts. Failure to update your beneficiaries or assets can result in unintended consequences.

It’s also important not to overlook incapacity planning. When updating your estate plan, you should review your powers of attorney and healthcare directives to make sure trusted individuals are designated to make decisions for you. If you do not update your healthcare and financial powers of attorney, they can become invalid if the designated agent has passed away or does not wish to serve. This can lead to guardianship or conservatorship proceedings to appoint an individual who can act on your behalf.

Contact an Experienced Ohio Estate Planning Attorney

Updating your estate plan can feel overwhelming, but having the right attorney by your side can make all the difference. Offering trusted estate planning services for more than 100 years, we work with clients to conduct regular reviews of their estate plans to ensure their wishes will be carried out and they have the peace of mind they need. Contact Middleton Law Offices today at 419.548.0196 for a consultation to learn how we can help.

Articles appearing in this column are intended to provide broad, general information about the law. This article is not intended to be legal advice. Before applying this information to a specific legal problem, readers are urged to seek advice from a licensed attorney.