Keeping your estate plan current is essential for ensuring it continues to serve your family’s needs. Attorney Kellen Bryant explains the three main trigger points that should prompt you to review and potentially update your will or trust with your estate planning attorney.
Three Main Trigger Points for Estate Plan Updates
There are three primary situations that should make you consider updating your estate planning documents:
- Change in people (family circumstances)
- Change in your financial situation
- Change in law
When any of these situations occur, you should ask yourself: “Maybe I should talk to my estate planning attorney to make sure this is all right.”
Trigger Point 1: Change in People
Changes in people refer to significant life events affecting the individuals named in your estate plan, whether they’re receiving assets or serving in important roles.
People Who Receive Assets
Consider updating your estate plan when beneficiaries experience:
- Marriage: New spouses may affect inheritance dynamics
- Divorce: You may not want ex-spouses inheriting through your beneficiaries
- Death: Need to redirect inheritance to other family members
- Birth of children: New grandchildren or other family additions
- Serious illness: Long-term care needs may change their inheritance needs
- Significant financial changes: If beneficiaries become much wealthier or poorer
People Who Have Jobs in Your Estate Plan
Update when individuals with important roles experience changes:
- Personal representatives (executors): Changes affecting their ability to serve
- Trustees: People managing your trust assets
- Healthcare surrogates: Those making medical decisions
- Attorneys-in-fact: People handling financial decisions
- Guardians for minor children: Backup caregivers
Why Family Changes Matter
Your existing estate plan may not provide for these changed circumstances exactly how you would want it, given the totality of your family situation. Regular updates ensure your plan reflects current family dynamics and needs.
Trigger Point 2: Change in Your Financial Situation
Significant changes in your financial circumstances—both positive and negative—can make your current estate plan inappropriate or ineffective.
Positive Financial Changes
Unexpected Inheritance
If something good happens and you receive an inheritance from a long-lost aunt or uncle:
- Your basic will might no longer be appropriate
- A sudden $500,000 inheritance requires different planning
- New wealth levels may trigger estate tax concerns
- Asset protection strategies might become important
- Different distribution strategies might be needed
Other Positive Financial Events
- Business success or sale
- Investment windfalls
- Real estate appreciation
- Lottery winnings or legal settlements
- Significant salary increases or bonuses
Negative Financial Changes
Market Downturns
A big drop in the stock market can create both challenges and opportunities:
- Tax planning opportunities: Lower asset values for transfer strategies
- Long-term care planning: May now qualify for benefits previously unavailable
- Estate plan simplification: Complex strategies may no longer be necessary
- Beneficiary adjustments: May need to change distribution amounts
Major Expenses
Significant expenses can dramatically affect your estate planning needs:
- Long-term care expenses: Paying for assisted living or nursing home care
- Medical emergencies: Unexpected healthcare costs
- Business losses: Economic downturns affecting business value
- Family emergencies: Supporting adult children or grandchildren
Professional Guidance for Financial Changes
These types of major financial changes require discussion with specialized attorneys:
- Estate planning attorney: For overall plan updates
- Estate tax attorney: For tax-focused strategies
- Elder care attorney: For long-term care planning
Trigger Point 3: Change in Law
Changes in estate planning, tax, or elder law can make your existing planning outdated or less effective.
How to Stay Informed About Legal Changes
Common sources of information:
- News reports about tax or estate law changes
- Mailers from attorneys about law updates
- Newspaper advertisements about planning changes
- Professional newsletters or updates
Important question to ask attorneys: “How do you keep up with your clients on changes in law that affect estate planning?”
Why Legal Changes Matter
- New laws can override existing planning strategies
- Tax law changes affect estate and gift tax planning
- Medicaid rule changes impact long-term care planning
- State law changes can affect document validity
- Court decisions may change planning effectiveness
Understanding Legal Update Costs
Important realities about law changes:
- Legal changes are unforeseeable
- You may need to pay fees to update your documents
- Some changes require immediate action to remain effective
- Proactive updates are usually less expensive than crisis planning
Additional Reasons to Review Your Estate Plan
Geographic Changes
- Moving to a different state
- Acquiring property in other jurisdictions
- Changes in state tax laws
Relationship Changes
- Remarriage after divorce or death
- Estrangement from family members
- New close relationships
- Changes in charitable interests
Health Changes
- Serious illness diagnosis
- Cognitive decline concerns
- Changes in life expectancy
- New insurance needs
How Often Should You Review Your Estate Plan?
Regular Review Schedule
- Minimum: Every 3-5 years
- Ideal: Annual review of circumstances
- Major changes: Immediate review when trigger points occur
- Life events: Review within 6 months of significant changes
What to Review
- Asset values and ownership structures
- Beneficiary designations on accounts
- Named individuals’ continued availability and appropriateness
- Current family circumstances and needs
- Tax law changes affecting your situation
Signs Your Estate Plan May Need Updates
Consider updating if:
- Your estate plan is more than 5 years old
- You can’t remember the last time you reviewed it
- Major life events have occurred since creation
- Your financial situation has changed significantly
- You’ve moved to a different state
- You’ve heard about changes in estate planning law
Working with Your Estate Planning Attorney
When any trigger point occurs:
- Schedule a review meeting with your attorney
- Bring updated financial information
- Discuss family changes and new circumstances
- Ask about recent law changes affecting your plan
- Get cost estimates for needed updates
Keep Your Estate Plan Current and Effective
Regular updates ensure your estate plan continues to serve your family’s needs and takes advantage of current laws and opportunities. Don’t wait for a crisis to discover your estate plan is outdated.
Contact the Berg Bryant Elder Law Group in Jacksonville, Florida today to schedule a review of your estate planning documents. Whether you’ve experienced changes in people, finances, or want to understand how new laws affect your plan, get the professional guidance you need to keep your estate plan current and effective.
Remember: An outdated estate plan can be worse than no plan at all. Stay current to protect your family’s future.
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Author Bio
Kellen Bryant, Esq.
Founder
Florida Bar Board Certified Elder Law Attorney, Kellen Bryant focuses his law practice on advising and helping caregivers with a particular focus on asset protection and preservation from long-term care costs, creditors, and predators. Kellen Bryant is AV Preeminent® Rated, meaning his attorney peers rated him at the highest level of professional excellence. Kellen Bryant was nominated and selected as a Super Lawyer, Rising Star: 2022.
