Change is a constant in life. Whether you have experienced major life milestones or minor life changes, a regular review of your estate plan will ensure that your assets are protected and your wishes are clearly documented and legally enforceable. Though there is no “brightline rule” indicating the right time to update your estate plan, this article will highlight a few events and considerations to assist you in determining whether your estate planning documents need to be updated.
Major Life Changes: Significant life events, such as marriage, divorce, the birth or adoption of a child, or the death of a loved one, can dramatically impact your estate plan. If any of these changes have occurred, it is essential to review your estate planning documents to ensure they continue to reflect your current situation and intentions. For those with minor children, it is particularly important to confirm that your Will designates guardians who are still appropriate and aligned with your current preferences in the event of your incapacity or death.
Beneficiaries and Fiduciaries: Over time, relationships change, and individuals named in your estate planning documents may no longer be the best fit. You should periodically review the people named to serve as Personal Representative, Trustee, Financial Power of Attorney, and Health Care Power of Attorney to ensure they remain capable and willing to act serve in such capacities . It is also important to revisit your beneficiary designations on retirement accounts, life insurance policies, and other assets to confirm they align with your overall estate planning objectives. In addition, you should review any advanced health care directives, such as a Living Will, to ensure they continue to reflect your wishes.
Change in Financial Situation: Changes in your financial circumstances, such as receiving an inheritance, acquiring or selling real estate, or starting or closing a business, can have significant implications for your estate plan. Your plan should be updated to reflect these changes so that it continues to support your long-term goals, addresses tax planning considerations, and ensures the orderly distribution of your assets.
Digital Assets: In 2025, digital assets have become a significant part of many individuals’ estates. These may include cryptocurrency wallets, online financial accounts, digital photo libraries, and social media profiles. Your estate planning documents should include clear provisions for managing and distributing these assets, including granting access to trusted individuals and specifying your wishes regarding their preservation, transfer, or deletion. Failing to address digital assets can result in unnecessary complications for your loved ones and delay the administration of your estate.
Charitable Giving Goals:
If your estate plan includes provisions for charitable giving, it is advisable to review them periodically to ensure they still align with your current values and philanthropic priorities. Charitable organizations, initiatives, and your personal interests can evolve over time. Reviewing and updating these provisions ensures your charitable legacy remains consistent with your most meaningful causes and goals.
An up-to-date estate plan offers peace of mind and ensures that your intentions will be carried out effectively. If you are uncertain about any part of your plan, consulting with an experienced estate planning attorney can provide valuable clarity and guidance.
Contact Alex Montoya at [email protected] to help you navigate life’s changes and ensure your estate plan is fully aligned with your needs in 2025 and beyond.