How Often Should I Update My Estate Strategy?

Planning for the future is essential, especially when it comes to securing the well-being of your loved ones after you're gone. Estate planning is not a one-time task but a process that should evolve with your and your family's needs. Let's explore why regularly examining your estate plan and updating it when necessary is key to generational financial well-being.

How Often Should I Update My Estate Strategy?

Many people wonder, "How often should I update my estate strategy?" The general rule of thumb is whenever you have a major life change. Additionally, if the laws change a review of your estate plan and your entire financial plan should be undertaken.¹But at a minimum you should review your estate strategy at least every 3-5 years, if not more often.

Your estate plan is a comprehensive set of legal documents that outline your wishes regarding your assets, property distribution, healthcare preferences, and more. However, life is unpredictable, and circumstances can change. Without regular updates, your estate plan may not reflect your current situation or wishes.

Major Life Events That Signal an Estate Plan Review

While everyone may review their estate strategy regularly at different intervals, certain life events should prompt an immediate review of your estate plan. Here are some key events to consider:²

Marriage or Divorce

When you get married, you'll likely want to update your estate plan to include your spouse as a beneficiary. Conversely, divorce may necessitate removing an ex-spouse from your plan.

Birth or Adoption of a Child

Welcoming a new child into your family means updating your plan to include them as a beneficiary. You'll also want to appoint guardians if something were to happen to you and your partner.

Death of a Loved One

The passing of a spouse, child, or another beneficiary should prompt a review of your estate plan to ensure assets are distributed according to your new wishes.³

Change in Financial Status

Significant changes in your assets, whether through inheritance, investments, or property acquisitions, should trigger a review of your estate plan.

Relocation to Another State or Country

Laws regarding estates vary by jurisdiction. If you move, it's essential to review your plan to ensure it complies with local laws.

Changes in Health

If you're diagnosed with a serious illness or experience a decline in health, you should review and update your healthcare directives and powers of attorney.

The question of "How often should I update my estate strategy?" comes down to a balance between regular reviews and responding to major life events. While a general timeline of every 3-5 years is a good rule of thumb, life changes should always prompt a review of your estate plan. Your plan should be a reflection of your current circumstances, wishes, and the legal landscape. By staying proactive and updating your estate plan accordingly, you can ensure that your loved ones are taken care of and your legacy is protected.