The start of a new year often inspires us to set goals, get organized, and make positive changes. While you might be focused on gym memberships and decluttering your home, there is one crucial area that deserves a spot on your resolution list: your estate plan. Life moves quickly, and a plan that was perfect a few years ago might be outdated today. An annual review ensures your wishes are accurately reflected and your loved ones are protected, no matter what happens.
This post will explore why the new year is the ideal time to review your estate plan. We will cover the specific life events that signal a need for an update and explain how keeping your documents current provides peace of mind. We will also invite you to a special event to learn more directly from our experts.
Why Your Estate Plan Needs an Annual Review
Think of your estate plan as a snapshot of your life, your assets, and your wishes. It includes important legal documents like a will, trusts, a power of attorney, and healthcare directives. Just as you wouldn’t rely on a ten-year-old photo to represent you today, you shouldn’t rely on an old estate plan to manage your affairs. Circumstances change, laws evolve, and your intentions may shift over time.
Failing to update your plan can lead to unintended consequences. Assets might go to the wrong people, your chosen guardians for minor children may no longer be appropriate, or your family could face unnecessary taxes and legal complications. A yearly check-in prevents these issues, ensuring your plan remains a powerful tool for protecting your legacy and your family.
Major Life Events That Demand an Estate Plan Update
Certain life changes significantly impact your estate plan. If you experienced any of the following events last year, a review should be a top priority.
Marriage or a New Partnership
Getting married is a joyous occasion that unites two lives, and it should also bring together your financial and legal planning. A new marriage often changes who you want to inherit your assets and who you would choose to make decisions on your behalf if you become incapacitated.
Without an update, your pre-marital estate plan will likely remain in effect, potentially leaving your new spouse without the protections or inheritance you would want for them. Updating your beneficiary designations on retirement accounts and life insurance policies is equally important, as these often override what is written in a will.
Divorce or Separation
The end of a marriage requires a thorough dismantling of your shared legal and financial life. It is critical to update your estate plan to remove your ex-spouse from key roles, such as executor, trustee, or beneficiary. Forgetting this step could mean your former partner retains control over your assets or receives an inheritance you intended for someone else.
During a divorce, you will need to re-evaluate your entire plan. This includes designating new beneficiaries, appointing a new power of attorney and healthcare proxy, and possibly restructuring trusts. It’s a clean slate and an opportunity to ensure your assets are directed according to your new reality.
The Birth or Adoption of a Child
Welcoming a new child into your family is a profound change that brings new responsibilities. One of the most important elements to add to your estate plan is the designation of a legal guardian. This is the person you choose to raise your child if you and the other parent are no longer able to. Without this legal designation, a court will make the decision, and it may not be the person you would have picked.
You will also want to update your plan to include your new child as a beneficiary. This can be done through a will or, more strategically, through a trust that can manage their inheritance until they reach a certain age.
The Death of a Loved One
The loss of a family member can ripple through your estate plan. If your named executor, trustee, or primary beneficiary has passed away, you must update your documents to appoint a successor. Failing to do so can create a legal void, forcing a court to intervene and appoint someone to manage your affairs. This can cause delays and may result in an outcome that doesn’t align with your wishes. This is also a time to reconsider how your assets are distributed if the deceased was a major beneficiary in your plan.
Beyond the Big Four: Other Reasons to Review
While major life events are clear triggers, other, more subtle changes can also warrant an estate plan review.
- Significant Changes in Assets: If you have bought or sold a business, received a large inheritance, or seen a substantial change in the value of your investments, your plan may need adjustments to manage these assets effectively and minimize tax implications.
- Changes in Laws: Tax and estate laws are subject to change at both the federal and state levels. An annual review with an attorney ensures your plan remains compliant and continues to take advantage of the most current planning strategies.
- Moving to a New State: Estate planning laws vary by state. If you have moved, your documents should be reviewed by an attorney in your new location to ensure they are valid and will be interpreted as you intend.
- Your Chosen Fiduciaries: Are the people you appointed as executor, trustee, or power of attorney still the right fit? Perhaps they have moved away, are experiencing health issues, or your relationship with them has changed. It’s vital to have people in these roles who are willing and able to serve.
Take the Next Step: Join Our Free Webinar
Understanding when and how to update your estate plan can feel overwhelming, but you don’t have to navigate it alone. To help you start the new year with clarity and confidence, The Russo Law Group is hosting a complimentary consumer webinar.
Join us on Thursday, January 22, 2026, for an informative session dedicated to the importance of keeping your estate plan current. Our experienced attorneys will provide valuable insights, answer your questions, and offer practical advice on protecting your assets and your family’s future. This is a perfect opportunity to learn directly from experts in the field.
An up-to-date estate plan is one of the greatest gifts you can give your loved ones. Make this the year you ensure your plan truly reflects your wishes.
