Estate planning is more than drafting a will and filing it away. It is an ongoing process designed to protect your assets and ensure your wishes are honored. As life and finances change, an outdated estate plan can create unintended outcomes, unnecessary estate and gift tax exposure, or confusion for your family.
As the year ends, many families review their finances and set priorities for the year ahead. Including an estate planning review as part of this process can help ensure your plan continues to be aligned with your long-term goals.
Life Events That May Require Estate Plan Updates
Certain life events are clear signals that it may be time to review your estate planning documents. These changes often affect beneficiaries, fiduciaries or distribution instructions.
Common triggers include:
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- Marriage or divorce
- Birth or adoption of a child or grandchild
- Death of a spouse, beneficiary, trustee, personal representative or executor
- Changes in family relationships or caregiving responsibilities
- Connecting with a new charitable cause
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When these events occur, it is important to review your will, trusts and beneficiary designations. Without updates, assets may pass in ways you no longer intend.
Health changes are another reason to revisit your plan. A new diagnosis or concerns about long-term care may require updates to key estate planning and incapacity planning documents, such as:
- Health care directives
- Powers of attorney
- Trustee, agent or guardian designations
These documents help ensure someone you trust can act on your behalf if needed.
Financial Changes in Business Ownership
Changes in your financial situation may also affect your estate and trust planning. Receiving an inheritance, selling real estate or experiencing investment growth can create new planning considerations related to asset protection, wealth transfer strategies and estate tax planning.
For business owners, estate planning requires additional attention. Starting a business, adding partners or preparing for a transition should prompt review of estate planning for business owners and business succession planning. Your plan should address:
- How ownership interests will transfer
- Whether liquidity will be available for heirs
- Who will manage the business if you are no longer able
Clear planning can help reduce uncertainty for family members and business partners.
Retirement, Relocation and Updating Estate Planning Documents
Retirement is another common point for reviewing an estate plan. As income sources change, it is important to ensure retirement accounts are coordinated with trusts and other planning tools. This coordination supports tax-efficient estate planning and clear asset distribution.
Moving to a new state may also require updates. State estate planning and tax laws vary and relocating between community property and non-community property states can affect how assets are owned and transferred.
Changes in estate and gift tax laws are also worth monitoring. Adjustments to exemption amounts or planning rules may affect your existing strategy and may create reasons to update your approach.
Are Your Trustees and Fiduciaries Still the Right Choice?
Even when your distribution plan remains the same, the people or institutions named in your documents may need to be reconsidered.
Questions to review include:
- Is the named trustee or agent still willing and able to serve?
- Do they understand your family circumstances and expectations?
- Would a corporate trustee or co-trustee provide added experience or continuity?
Revisiting fiduciary choices can help avoid administrative issues later.
Keep Your Estate Plan on the Right Path
An up-to-date estate plan protects your legacy, provides guidance for those executing your plan, and ensures your assets are distributed according to your wishes. Now is an ideal time to schedule an estate planning review with Boulay’s estate and trust team and affiliates.
Working with an experienced advisor allows you to:
- Confirm that your wills, trusts, and beneficiary designations are current
- Evaluate changes in your family, finances or business that may affect your plan
- Align your plan with tax-efficient strategies, fiduciary selection, and long-term goals
Connect with an advisor today to learn how you can keep your estate plan on the right path.