When Should You Update Your Estate Plan?

Estate planning isn’t a one-and-done task—it’s a process that evolves with your life. Your estate plan reflects your wishes, your priorities, and your family’s future, which means it must be kept up to date to stay effective. Below, we discuss key moments when it’s essential to revisit and update your estate plan to ensure it still serves its purpose.

Why Should You Regularly Review Your Estate Plan?

Life is unpredictable, and your estate plan needs to adapt to the changes that come with it. From welcoming new family members to experiencing major financial changes, there are several milestones that could make your current estate plan outdated.

We recommend reviewing your plan every three to five years or sooner if a major life event occurs. This allows you to make necessary adjustments and avoid complications later on.

Key Life Events That Require an Estate Plan Update

Marriage

Marriage is a significant life event that requires a fresh look at your estate plan. Whether you and your spouse create a joint estate plan or choose to keep separate plans, it’s essential to ensure that your documents reflect your marital status and your shared goals.

For example, you may need to update beneficiary designations, powers of attorney, and wills to include your spouse or adjust your trust to reflect your new family structure.

Divorce

Divorce is another critical moment for revisiting your estate plan. Failing to update your documents during a divorce could unintentionally benefit your ex-spouse or leave your children unprotected.

For instance, one case involved a client whose ex-spouse inherited the entire estate due to an outdated estate plan. Unfortunately, this left the client unable to care for their children. Don’t let this happen to you—ensure your wishes are legally documented during your divorce proceedings by working with both your divorce and estate planning attorneys.

Welcoming a New Baby

The arrival of a new baby is a joyous occasion, but it also brings new responsibilities. Your estate plan should reflect your wishes for your growing family.

Adding a new child’s name to your estate planning documents ensures there’s no confusion about how they’ll inherit from your estate. If you don’t update your plan, your child may be unintentionally excluded, requiring a court petition to resolve the oversight.

A notable example is the estate of Kobe Bryant. After his passing, his wife had to petition the court to include their youngest daughter, who was not yet listed in their estate plan. This avoidable situation highlights the importance of keeping your documents current.

Financial or Asset Changes

Your assets form the foundation of your estate plan, so it’s crucial to review them regularly. Changes such as refinancing a home, purchasing property, or opening new financial accounts can impact your plan.

For instance, refinancing a home often involves removing the property from your trust temporarily, but many people forget to transfer it back. This oversight can create significant legal issues for your family down the road.

During your estate plan review, ensure all assets are properly titled in your trust or have updated beneficiary designations. This step keeps everything aligned with your wishes.

Common Questions About Updating an Estate Plan

How Often Should I Review My Estate Plan?

As a rule of thumb, review your estate plan every three to five years. However, if you experience a significant life event—like marriage, divorce, the birth of a child, or financial changes—you should update your plan immediately.

What Happens If I Don’t Update My Estate Plan?

An outdated estate plan can lead to unintended consequences. Your assets may go to the wrong beneficiaries, your loved ones may face legal complications, or your wishes may not be honored. Regular updates are essential to prevent these issues.

Do I Need a Lawyer to Update My Estate Plan?

While it’s possible to make minor changes on your own, working with an estate planning attorney ensures that your updates are legally sound and comprehensive. An attorney can also identify potential issues you might overlook.

Protect Your Future With Hermance Law

Your estate plan is one of the most important documents you’ll ever create. By keeping it updated, you can ensure that your family is protected and your wishes are honored, no matter what life throws your way.

At Hermance Law, we specialize in helping California families navigate the complexities of estate planning. Whether you need to review your current plan or create one from scratch, we’re here to guide you every step of the way.

Book your free consultation today athermancelaw.com or call 805-749-5313 to get started.