--- url: 'https://www.fmjlaw.com/when-to-revisit-your-estate-plan-things-to-consider-every-year/' title: 'When to Revisit Your Estate Plan – Things to Consider Every Year' author: name: Adam url: 'https://www.fmjlaw.com/author/adam-brownfmjlaw-com/' date: '2023-03-16T21:54:34+00:00' modified: '2023-05-16T16:31:38+00:00' type: post categories: - 'Trusts & Estates Blog' tags: - Estate Planning - trust - Will image: 'https://www.fmjlaw.com/wp-content/uploads/2023/03/Calendar.png' published: true --- # When to Revisit Your Estate Plan – Things to Consider Every Year There are a number of life events that trigger a need to revisit or update an estate plan.  The following is a checklist of things to consider early in the year.  If any of these are relevant for you or a loved one, it is time to revisit and revise the corresponding estate plan. #### **The Five D’s of Estate Planning** Let’s start with the five D’s of Estate Planning.  Not to be confused with the five D’s of Dodgeball (Dodge, Duck, Dip, Dive, and Dodge) (See Dodgeball: A True Underdog Story – 2004), the Five D’s of Estate Planning cover some of the most common major life events that trigger a need to revisit a plan.  Unfortunately, these events can be hard to face, but they are a big part of the reason for an estate plan.  The goal is to make things easier for everyone, protect and transfer wealth, avoid negative tax consequences, and, ultimately, remove some of the burden for loved ones trying to navigate difficult situations. - **DECADE **(probably more like every five years, but Decade starts with D) There are a number of changes that happen over time to rates, laws, rules, and other external factors.  As such, it is important to revisit an estate plan periodically to make sure benefits, tools, and strategies are being maximized. - For example, in early 2026, the federal estate tax exemption amount is scheduled to decrease significantly, which will change the landscape of estate planning and expand the reach of the tax to include many more estates.  If you have not reviewed your plan for a while, now is the time to maximize planning before the changes in 2026. - **DIVORCE** This is a major life change that can have a big impact on an estate plan.  It might be the last thing people want to think about, but there will be significant changes and updates needed in the estate plan.  - There are some statutory changes that happen when a divorce proceeding is initiated, but many are not binding until the date the divorce is finalized by a Court Order.  This means that an estate plan could still benefit a divorcing spouse if something happens during the legal process. - **DIAGNOSIS** Are there major health issues on the horizon?  The sooner you can revisit your estate plan under these circumstances, the better. Things will likely become more difficult as time passes, so act early.  - Healthcare Directives, Powers of Attorney, and similar planning items should be reviewed. - **DECLINE** Are things getting worse?  Pick a time to revisit the estate plan. The more someone can take care of before things get worse, the easier it will be for everyone down the road. Once again, Healthcare Directives, Powers of Attorney, and similar planning items should be reviewed.  - If a person loses “legal capacity” they may be unable to execute, update, or change any of the legal documents designed to protect them. - **DEATH** When someone does pass, it is time to check in with your attorneys and estate planning team.  Remember that the estate plan was there for a reason, and your team is here to help and ease some of your burden in difficult times. - Typically, some type of administration must occur to give someone authority to act on behalf of a trust or an estate prior to assets being transferred. - If the person who dies is a role player in someone else’s documents/plan, that person will likely need to be replaced with another person or professional fiduciary. #### Other Life Events to Consider In addition to The Five D’s, there are a number of other events that trigger estate planning changes.  Here is a list of some of the most common events. - **CHANGES REGARDING AGENTS AND FIDUCIARIES** Is there a reason to change fiduciaries, guardians, trustees, personal representatives, or anyone else involved with an estate plan?  - Changes in situation, relationships, geographic location, and all sorts of events can trigger a need to change the individuals named as role players in an estate plan.  - It is a good idea to revisit this item regularly and make sure that the people you select are willing and able to continue in their roles and that they are aware of where you keep your important documents. - **HAVING CHILDREN OR GRANDCHILDREN** Yay!  This is an exciting time.  - It also means that there are more people in the family.  As such, there may need to be changes to an estate plan’s guardianship language, distribution pattern, annual giving plans, and so on. - Specifically, children turning 18 should consider a Power of Attorney and Health Care Directive in order for a parent to continue acting on their behalf. - **CHILDREN BECOMING ADULTS** Children reaching adulthood can trigger a number of events and required changes. - This is something to plan for before it happens, and it should be revisited after adulthood as well to make sure everything happened as planned.  - **MARRIAGE** Another exciting occasion that adds members to the family. Getting married can also provide access to more sophisticated estate planning options.  - It is important to review and potential update beneficiary designations for life insurance, retirement accounts, or other such assets. - It might also be a time to consider pre-nuptial agreements or other planning tools. - **PURCHASE OR SALE OF REAL ESTATE** Plans need to be updated and revised to include or remove real estate and other types of property.  This can include business properties, family cabins, and so on. - It is important to make sure assets are current and accounted for in the estate plan. For Revocable Trust-based plans, it is important to make sure any real estate you own is titled into your Revocable Trust. - For Will-based plans, purchasing real estate in a new state may signal the necessity of a shift from a Will to a Trust. - **STARTING OR OPERATING A BUSINESS** This can change the structure of assets significantly, and some practices such as annual giving may need to be paused or increased.  - If you start or already operate a business, your estate plan should provide for its continuation or winding up upon your death. - **OTHER SIGNIFICANT CHANGES IN FINANCIAL SITUATION** Inheritance is a good example of an event that can significantly impact the value of an estate. - **HEIRS FACING ISSUES IN THEIR LIVES** Sometimes legal concerns, addiction, substance abuse, bankruptcy, or other issues can arise with heirs. - This might be a time to reconsider an estate plan and try to find ways to support heirs in a way that makes sense for their situation. 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