When Should Estate Plans Be Reviewed and Updated?

When To Review & Update Your Estate Plan

After signing estate planning documents, clients are always reminded about the need to review the documents periodically and to come in for updates when necessary. There are a variety of circumstances that may implicate a need to review your current estate plan.

Typically, these circumstances include:

  • The death or incapacity of an individual named in a document;
  • Whenever there is a birth, death, divorce, or marriage in the family or among beneficiaries;
  • When you change your state of domicile, which is usually accomplished by changing your primary residence (for example, by changing your voter registration and driver’s license);
  • When you acquire or sell any substantial asset, receive an inheritance, or are considering selling or buying real estate;
  • When a close relative or beneficiary under your current estate plan has a change in financial, health, or personal circumstances;
  • For clients with minor children, the plan should be reviewed when the circumstances change for a guardian nominated under your current documents;
  • If you start, acquire, sell, or wind down a business;
  • If you begin experiencing health issues; and
  • If you have legal issues or foresee them on the horizon.

Even if none of the above issues present themselves, it is often wise to review your documents every three to five years.

Sometimes, the state or federal governments will change the rules that may impact your estate plan. For example, ten years ago it was common in Maryland for estate planners to use so-called bypass trusts for couples in order to avoid or minimize Maryland’s estate tax. With the passage of House Bill 739 (2014), the use of bypass trust planning is not as prevalent as it once was. If your last estate plan included a bypass trust and was drafted before 2014, then it is time for a discussion with your attorney.

Take a look at your current documents and feel free to reach out with any concerns.