Section 11: Reviewing and Updating Your Plan
Estate planning is not a one-time event but an ongoing process.
Communication Updates
When you update your estate plan, communicate relevant changes to affected individuals. If you have changed fiduciaries, inform both the newly appointed individuals and those you have replaced (though you need not explain your reasons for the change). If you have made substantial changes to your children's guardians or inheritances, consider whether to discuss these changes with family members. If you have updated healthcare directives, provide new copies to your healthcare agent and healthcare providers.
Update your document location list and any emergency information sheets to reflect current information. Ensure that individuals who need to access your documents know about any changes to storage locations or access procedures.
When to Review Your Plan
Review your estate plan at least every three to five years even if nothing major has changed, as laws change, family circumstances evolve, and your thinking about various issues may shift over time. Additionally, review and update your plan whenever you experience major life changes.
Marriage or divorce affects virtually every aspect of your estate plan, requiring updates to beneficiaries, fiduciaries, and distribution provisions. Death or incapacity of fiduciaries you named requires appointing replacements. Significant changes in assets or financial situation may require adjusting your plan to address tax issues, change distribution amounts, or modify trust provisions. Changes in relationships with family members or fiduciaries may require reconsidering who you have named in various roles.
How to Update Your Plan
For wills, if changes are minor, a codicil (formal amendment) may be appropriate, but if changes are substantial, creating a new will is typically better. Execute the new will with the same formalities as the original. Expressly revoke all prior wills to avoid confusion. For trusts, execute a formal amendment for minor changes or a complete restatement for substantial revisions. A restated trust maintains the same trust name and date but updates provisions throughout. For powers of attorney and healthcare directives, these documents typically cannot be amended, so you must create new documents to replace the old ones. Execute new documents with proper formalities and ensure copies are distributed to relevant individuals.
After updating documents, ensure that asset ownership and beneficiary designations remain aligned with your plan. If you have made significant changes to your trust, verify that all intended assets are still titled to the trust. Review and update beneficiary designations on retirement accounts, life insurance policies, and other accounts to reflect your current wishes.