Life changes. Your plan should too. Estate planning isn’t a one-time task; it’s an evolving process. While drafting a will, trust, or power of attorney can give you a sense of control and peace of mind, these documents are only effective if they reflect your current life, finances, and relationships.
The truth is, an outdated estate plan can be just as dangerous as having no plan at all. As your life changes, your estate documents should change with you. Failing to update them can create confusion, conflict, and unintended consequences for the people you care about most.
Here’s why regular estate plan reviews are essential and what life events should trigger them.
Why You Should Revisit Your Estate Plan
Your estate plan outlines who makes decisions on your behalf, who inherits your assets, who will care for your children, and how your legacy is protected. When your life changes, so does the context of these decisions.
Even small updates, like a new home purchase or a new family member, can dramatically alter how your estate is handled in the eyes of the law. Without adjustments, your plan may no longer reflect your true intentions or offer the protection you originally intended.
7 Life Events That Should Trigger an Estate Plan Review
1. Marriage or Divorce
If you’ve recently married, you may want to include your spouse in your estate plan as a beneficiary, decision-maker, or co-trustee. If you’ve gone through a divorce, it’s critical to remove your former spouse from these roles. Mississippi law does not automatically revoke all rights of a former spouse in estate documents, so manual updates are necessary to avoid unintended outcomes.
2. Birth or Adoption of a Child or Grandchild
When your family grows, your plan should evolve to protect the newest members. You may want to update beneficiary designations, name legal guardians for minor children, or establish trusts to manage assets for young heirs.
3. Death of a Loved One
If someone named in your plan, including a beneficiary, executor, or power of attorney, passes away, it’s important to designate new individuals for those roles. You may also want to revise how assets are distributed among the remaining beneficiaries.
4. Significant Changes in Assets
Whether you’ve bought a home, sold a business, received an inheritance, or experienced financial hardship, any significant change in your financial picture may require a revised plan. A trust may need to be funded with new assets, or your distribution plan may need to be adjusted to account for new holdings or debts.
5. Moving to Another State
Estate planning laws vary significantly from state to state, particularly when it comes to probate procedures, tax laws, and the legal validity of certain documents. If you relocate to Mississippi or leave the state, you should have your existing documents reviewed by a local estate planning attorney to ensure compliance.
6. Owning or Exiting a Business
Business owners should regularly revisit their estate plans to account for succession planning, valuation updates, or ownership transfers. If you’ve recently sold a business, that may impact both your taxable estate and the distribution plan for your heirs.
7. Changes in Tax Laws or Legal Requirements
State and federal estate tax laws change frequently, and these changes can impact your estate’s exposure to taxation or probate. Even if your personal circumstances remain the same, legal or regulatory changes could affect your plan’s effectiveness.
What to Review and Update
When reviewing your estate plan, some of the most common updates include:
- Changing or updating beneficiaries on wills, trusts, retirement accounts, and life insurance
- Assigning new individuals as executors, trustees, or agents for powers of attorney
- Revising guardianship provisions
- Funding or updating revocable trusts to include new assets
- Adjusting your distribution plan to reflect changing family dynamics
- Adding documents for new planning concerns, such as digital assets or long-term care
How Often Should You Review Your Estate Plan?
It’s recommended to review your estate plan every three to five years, or after any major life event. Even if no significant changes have occurred, a regular review can help you identify small updates, ensure your documents remain legally sound, and take advantage of any new planning opportunities.
Peace of Mind Through Proactive Planning
Your estate plan is a personal reflection of your values, your family, and your legacy. Keeping it updated ensures that your intentions are clearly understood and legally protected.
At Lancaster Law Firm, we work with clients throughout North Mississippi to build and maintain estate plans that evolve as life does. Whether you’re celebrating a new chapter or navigating a difficult change, we’re here to help you ensure that your plan stays aligned with your future.If it’s been a few years – or if you’ve experienced any major life events – schedule a consultation with our team to review and refresh your estate plan.