When Should You Revisit and Update Your Estate Plan?

Having a comprehensive estate plan in place is crucial to protecting your family and your assets. Your estate plan can be used to ensure that your wishes are carried out and your assets distributed properly after your death. However, creating an estate plan should not be a “one and done” event.

It’s important to frequently revisit your estate plan to ensure it still meets your needs as your life and financial situation evolve. You should always revisit your estate plan after any major life event or substantial change to your finances to ensure that it still meets your needs.

Keep reading below to learn more details from our Oklahoma City estate planning attorneys about when you should revisit and update your estate plan.

Common Reasons to Revisit and Update Your Estate Plan

The good news is that you can make sure that your estate plan continues to meet your needs even as your life circumstances change. The problem is that many people simply forget that they may need to revisit their estate plan. Here are some of the most common times when you should revisit your plan and potentially make updates.

Major Change in Life Circumstances

Life changes constantly, and major changes can be a sign that you need to update your estate plan. While some changes can be joyful, others might be difficult and painful. Some examples of life changes that may require an update to your estate plan include:

The birth or adoption of a child
Marriage
Divorce
Loss of a loved one

All of these major life events can have a big impact on the way that you wish for your estate to be handled. You may need to add a new beneficiary, name a different executor, or execute other changes. An experienced estate planning lawyer in Oklahoma City (or elsewhere in Oklahoma) can help you navigate these updates and ensure your plan reflects your new circumstances.

Significant Financial Changes

Did you recently win the lottery? While that may be an outrageous example, even things like selling a business or making a good investment can spur the need for changes to your estate plan. On the flip side, maybe you are experiencing a less-than-ideal financial situation. This type of situation might require scaling back your estate plan to accommodate your current goals.

You Moved to a New State

It’s not uncommon to move from one state to another, whether for work, family, or just personal preference. Many estate plans are often overlooked after a big move. The truth is that estate law varies from one state to the next. This means that your current estate plan might not be the best approach in your new state of residence.

After a move to a new state, you should always revisit your estate plan with a local estate planning lawyer who knows the ins and outs of your new state’s laws.

You Changed Your Mind

It’s totally normal to change your mind and update how you would like your assets to be distributed. However, the only way to ensure your new decisions take effect is to update your estate plan. Even if you verbally tell someone of your new plan, it is not legally binding until you make the necessary updates to your estate documents.

Significant Decline in Health

Another reason for revisiting your estate plan is when you experience changes in your health. Perhaps you have been diagnosed with an illness or condition that will require long-term care. This can cause you to rethink your current plan, and you might decide to utilize your financial resources in different ways.

A Long Time Has Passed

Even small life changes can add up over time. If it has been several years since you looked at your estate plan, now is the time. You might find that some of your plans and documents are outdated and need to be changed.

Additionally, estate laws and tax laws change over time, so your old strategy may no longer be the best choice. Typically, you should revisit your estate plan every three to five years at a minimum, even if you do not experience any major life changes.

Potential Consequences of Failing to Update Your Estate Plan

Failure to update your estate plan could have several consequences. At a minimum, it could mean that your latest goals and wishes are not carried out after your death. For example, imagine that you get divorced and never update your estate plan. You could end up leaving significant assets to an ex-spouse, and that is not likely what you intended to do.

Not revisiting and updating your estate plan could also have big financial consequences. If you move to another state or fail to make updates after estate law changes, your beneficiaries could pay the price. Tax law changes and differences could lead to a big financial impact that could potentially have been avoided with proper planning and updates.

Consulting with an estate planning attorney regularly can help ensure your plan stays current and your beneficiaries are protected.

How Do I Update My Estate Plan?

The good news is that updating your estate plan does not have to be difficult. In most cases, you can simply draft new estate documents and destroy the old ones. While the execution of new documents legally puts your new plan in place, it is usually a good idea to destroy the old documents to avoid any confusion in the future.

When updating your plan, you should always work with an experienced estate planning lawyer who is familiar with the local laws and regulations. Your estate planning attorney can listen to your needs and goals and help you create a plan that is up-to-date and in compliance with all the proper laws.

Depending on your situation, you may need to update your:

Keeping an updated, comprehensive estate plan in place helps to protect your family and your assets. Your estate plan is not just a set of legal documents but a reflection of the legacy that you want to leave behind. Perform regular checkups of your estate plan to ensure that it remains future-proof.