An estate plan is meant to reflect your life as it is today. As your life changes, your estate plan may need to change too. If they do not, they may no longer carry out your wishes as intended.
Many people create a will or trust and leave it unchanged for years. Reviewing your estate plan after major life events helps keep your documents aligned with your goals.
Five milestones that deserve a closer look
Major life events can affect how an estate plan works and whether it still reflects your wishes. While every situation is different, certain milestones are more likely to prompt a review than others. The following life events are among the most common:
- Marriage or divorce: Changes in your marital status can affect beneficiary designations, fiduciary appointments and the way Arizona community property laws apply to your estate.
- The birth or adoption of a child: A growing family may change who you want to inherit your property, who you would name as a guardian for a minor child and whether a trust should become part of your estate plan.
- A major change in your assets: Buying a home, inheriting property, building a valuable collection or acquiring digital assets can change what your estate includes and how you want those assets to pass to others.
- Retirement or another significant financial event: Retirement, selling a business or a substantial increase in wealth can affect beneficiary designations and long-term estate planning goals.
- Starting, growing or selling a business: Business ownership can influence how ownership interests pass to family members, business partners or other beneficiaries. Estate planning documents and a business succession plan can work together to address those transfers.
Not every milestone requires the same updates, but each one can affect how your estate plan carries out your wishes.
Don’t overlook smaller changes
Major milestones are not the only reason people revisit their estate plans. A review may also follow the death of a personal representative or trustee, changes in family relationships or a move from another state. Because estate planning laws differ by state, documents prepared elsewhere may no longer match Arizona law.
Some people also review their estate plans after changes to Arizona estate laws or after several years have passed. Even without a major life event, reviewing your estate plan every few years can help confirm that your documents still reflect your family, your property and your estate planning goals.
Estate planning is an ongoing process
An estate plan reflects your wishes at a particular point in time. Reviewing it after major life events and at regular intervals helps keep your planning documents aligned with your goals as your life changes.
Keeping estate planning documents up to date can reduce the chance that outdated information will affect how your estate is administered or how your property passes to your intended beneficiaries.