When and Why to Update Your Estate Plan: Life Events, Tax Changes and Ongoing Maintenance

Estate planning is not a one‑time task but a living process. A solid plan ensures that your assets are distributed according to your wishes, minimizes taxes and probate costs, and provides clear instructions for your finances and health care if you become incapacitated. However, time and change can render even a well‑constructed plan ineffective. Laws evolve, families expand or contract, and financial portfolios grow more complex. Reviewing and updating your estate plan is therefore a critical part of responsible wealth management.

Regular Reviews: Every Three to Five Years

Attorneys and financial advisers generally recommend a formal review of your estate plan at least every three to five years, even if life feels stable. A periodic check-up gives you the opportunity to verify that all documents—wills, trusts, beneficiary designations and powers of attorney—still reflect your current wishes and comply with changing laws. Professionals advise reviewing your estate plan every three to five years because financial circumstances and federal or state laws can change without warning. When doing estate planning, be cautioned against a “set‑it‑and‑forget‑it” mindset, confirm periodically that your plan aligns with your goals and take advantage of legal changes.

Regular reviews can identify outdated beneficiary designations, missing assets or provisions that no longer make sense. For example, if you added a living trust to avoid probate but never transferred property into it, the plan will not achieve its intended benefit—a surprisingly common oversight. By scheduling periodic reviews, you can catch these errors before they become costly problems.

Major Life Events that Demand an Update

Life is full of milestones and detours. Many of these moments affect how your estate should be distributed and who should be in charge of your affairs. Here are the most common life events that warrant a fresh look at your estate plan:

Marriage or Divorce

Marriage can change property rights and automatically entitle a spouse to a share of the estate in many states. A new spouse may need to be added to your will, trust or beneficiary designations. Conversely, divorce or legal separation usually requires removing an ex-spouse from these roles. Failing to update beneficiary forms could result in an ex inheriting retirement accounts or life insurance proceeds. Marriage, remarriage and pending or finalized divorces are key triggers for an estate plan review because legal status, community property rules and beneficiary rights can shift drastically.

Birth or Adoption of a Child

Expanding your family is one of the most important reasons to revise your estate plan. You may need to name guardians for minor children, establish or update trusts to manage their inheritance and adjust asset distribution. Birth or adoption requires appointing guardians and often creating trusts to manage assets until children reach maturity.

Death of a Loved One or Fiduciary

If a beneficiary, executor, trustee or guardian dies or becomes incapacitated, your estate plan must be updated to name replacements. The death of a spouse, child or another fiduciary is a high-priority reason to revisit your plan. Without timely adjustments, courts may appoint someone you wouldn’t have chosen.

Health Changes or Incapacity

Your own declining health or a new diagnosis may necessitate revisions to your healthcare directives, living will or powers of attorney. You should review these documents when health circumstances change so that your current wishes are respected if you become unable to make decisions for yourself. Updating powers of attorney ensures that the right person is authorized to act on your behalf.

Major Financial Changes

Significant shifts in your financial situation require updates to your estate plan. Examples include starting or selling a business, receiving an inheritance, buying or refinancing real estate, or experiencing a windfall or loss. Financial changes necessitate adjusting distributions, tax planning and trust structures to keep benefits balanced among beneficiaries. Similarly, acquiring new assets such as property, investments or businesses requires updating your plan so those assets are properly distributed and accounted for.

Relocation or Change of Domicile

Moving to a new state or country can impact the validity and effectiveness of your estate plan. Each jurisdiction has its own rules regarding wills, trusts, spousal rights and probate. If you relocate, review your plan because legal differences may alter how certain provisions work or even void entire documents. A quick update ensures compliance with local requirements and protects your estate from unintended consequences.

Changes in Beneficiaries or Fiduciaries

Family relationships evolve. Estrangement, reconciliation, bankruptcy or other events may require adding or removing beneficiaries, trustees or executors. Updating your estate plan when beneficiaries undergo major personal or financial changes is essential to ensure your legacy aligns with current intentions. You may also need to replace a fiduciary who is no longer willing or able to serve.

Legal and Tax Changes: Keeping Pace with the Law

Estate planning doesn’t happen in a vacuum. Congress and state legislatures frequently amend tax and probate laws, which can materially affect your plan. For example, the One Big Beautiful Bill Act signed on July 4 2025 permanently boosts the federal estate and gift tax exemption to $15 million per person ($30 million for married couples) effective January 1 2026, with inflation adjustments beginning in 2027. Without this legislation, the exemption would have dropped to around $7 million as scheduled under the Tax Cuts and Jobs Act. The Act also increases the generation-skipping transfer (GST) tax exemption to the same level and holds the annual gift tax exclusion at $19,000 for 2025.

Such tax law changes demonstrate why periodic updates are critical. If your estate plan was drafted when the exemption was lower, you may need to revise gifting strategies, adjust trust funding or update your credit shelter provisions. Tax laws and estate regulations frequently change, and staying up to date is vital to minimize taxes on your beneficiaries. Even states without inheritance taxes can have probate or tax rules that affect your estate.

Other legislative changes also merit attention. The SECURE Act and SECURE Act 2.0 altered rules for inherited retirement accounts, requiring most non-spouse beneficiaries to withdraw funds within a limited period. Likewise, the Corporate Transparency Act, effective January 1 2026, requires many LLCs and other entities (often owned by trusts) to file beneficial ownership information, prompting trustees to review structures and documentation. Any time a major law changes, consult an attorney to ensure your plan is compliant and still maximizes tax benefits.

Best Practices for Reviewing and Updating Your Estate Plan

Take Inventory and Gather Documents

Begin by collecting your existing estate planning documents: wills, trusts, powers of attorney, healthcare directives, beneficiary designations and insurance policies. Use annual checklists that include gathering all documents, reviewing beneficiaries and powers of attorney, and verifying that assets are accounted for. An up-to-date inventory makes it easier to identify gaps and helps executors or trustees administer your estate smoothly.

Evaluate Changes Since Your Last Review

Reflect on the life events, financial changes and legal developments since your last update. Ask yourself: Have you moved? Married or divorced? Added children or stepchildren? Acquired or sold a business? After each major event or at regular intervals, revisit your plan to ensure it still aligns with your wishes and maintains equitable distribution of assets. If you are uncertain about how a change affects your plan, seek guidance from an estate planning professional.

Consult Professionals for Complex Revisions

While minor updates (such as changing a beneficiary on a life insurance policy) may be straightforward, many changes require legal expertise. For example, adjusting a trust for tax changes, creating a buy‑sell agreement for a family business or establishing a special needs trust for a new beneficiary are tasks best handled by attorneys and financial advisors. Work with a professional to ensure documents meet state-specific requirements and to avoid costly mistakes.

Communicate with Key People

Updating your estate plan isn’t solely a paper exercise. You should communicate changes to those who will be affected—your named executors, trustees, agents under powers of attorney and beneficiaries. It is important to confirm that your chosen guardians and fiduciaries are still willing and able to serve. Open communication minimizes confusion and prepares your family for their roles.

Commit to Ongoing Maintenance

After you update your estate plan, commit to reviewing it regularly. Review every three to five years, after major life events, after acquiring significant assets and when laws change. This disciplined approach ensures your plan remains flexible and effective, protecting your heirs from probate delays, unexpected tax bills and family disputes.

Conclusion: A Living Estate Plan Preserves Your Legacy

Your estate plan is a roadmap for your legacy. Creating it is an act of care and foresight, but maintaining it is equally important. Life milestones, financial changes and evolving laws can render an outdated plan ineffective or even harmful. By reviewing your estate plan every few years and updating it after major events—such as marriage, divorce, the birth of a child, the acquisition of new assets or changes in tax law—you ensure that your intentions are honored and your loved ones are protected.

The massive estate tax exemption increase to $15 million per person in 2026 under the One Big Beautiful Bill Act serves as a timely reminder that legal landscapes shift. Proactive updates allow you to leverage favorable laws and avoid pitfalls from obsolete provisions. Work with qualified professionals, maintain clear communication with your family and fiduciaries, and treat your estate plan as a living document. By doing so, you will safeguard your assets, honor your wishes and leave a lasting legacy that endures through generations.