Most people think of estate planning as a “one and done” process. You set it up, tuck it away in a drawer, and never have to think about it again. But we all know that life doesn’t stand still, and neither should your estate plan. Your estate plan includes living documents that should change as your life does, and an outdated plan is an ineffective plan.
Caring.com recently published a study of how often people update their estate documents, and these were the results:
- 25% updated within the last 5 years
- 23% have never updated at all
- 21% updated within the last year
- 16% updated within the last 6 months
This means nearly a quarter of people are relying on outdated instructions, or never revisited their plan since the day it was signed.
Here’s why keeping your plan up-to-date matters:
Life Changes Affect Your Assets
A significant increase in assets might mean additional tax planning opportunities or charitable giving goals, while a decrease in wealth could mean rethinking how much each beneficiary will receive. If your plan doesn’t reflect your current financial situation, it may not protect your assets or your wishes as intended.
Family Dynamics Shift
Families grow and change. Maybe you have recently moved, or you’ve welcomed a child or grandchild. Perhaps there’s been a divorce, death, or other major shift. Estate plans should reflect these changes so that the right people are included, and the wrong people aren’t. Beneficiary designations, guardianship decisions, and even who serves as executor should all be revisited whenever family dynamics evolve.
Health & Preparedness
Another common reason people update their plans is health. A major medical diagnosis, the loss of a spouse, or even preparing for surgery are all triggers for reviewing legal documents. Updating your estate plan ensures your healthcare directives are clear, powers of attorney are current, and your wishes are documented, so your loved ones aren’t left guessing.
Avoiding Outdated or Invalid Plans
23% of people have never updated their plan, which leaves them at risk. An outdated plan may list beneficiaries who have passed away, executors who are no longer able to serve, or assets that don’t even exist anymore. In some cases, changes in state or federal law could even make parts of the plan invalid. Updating your estate plan helps ensure it still works the way it was intended. If you haven’t revisited your estate plan with an attorney recently, make sure that you do so as soon as possible.
Preventing Disputes
When your documents are up-to-date, you know your wishes will be carried out and your family won’t face unnecessary confusion or disputes. A proactive update today can prevent painful disagreements tomorrow.
Your estate plan isn’t meant to be a time capsule, it’s a living set of instructions that should change as your life does. Reviewing your plan regularly, ideally every few years or after major life events, helps keep it accurate, effective, and aligned with your goals.
If it’s been a while since you looked at your estate plan, now is the perfect time. Click here to schedule a free discovery call with a member on our team, and we will take the time to make sure your plan is exactly what you have in mind.
“Trent Linville provided excellent service in guiding my wife and me in restating and updating our existing Revocable Living Trust. He took the time to explain the process and helped us to understand the sometimes complex issues.” -Joseph
