How Often Should I Update My Estate Strategy?

Estate strategies for the future may be essential, especially when it comes to securing the well-being of your loved ones after you're gone. Your strategy is not a one-time task but a process that should evolve with your and your family's needs. Let's explore why regularly examining your estate strategy and updating it when necessary is key to generational financial well-being.

How Often Should I Update My Estate Strategy?

Many people wonder, "How often should I update my estate strategy?" The general rule of thumb is at least every 3-5 years, if not more often. Fidelity recommends reviewing your estate strategy when you review your entire financial plan, which could be annually, semi-annually, or quarterly.¹

But more importantly, you should review your estate strategy whenever you have a major life change.

Your estate strategy is a comprehensive set of legal documents that outline your wishes regarding your assets, property distribution, healthcare preferences, and more. However, life is unpredictable, and circumstances can change. Without regular updates, your estate strategy may not reflect your current situation or wishes.

Major Life Events That Signal an Estate Strategy Review

While everyone may review their estate strategy regularly at different intervals, certain life events should prompt an immediate review of your estate strategy. Here are some key events to consider:²

Marriage or Divorce
When you get married, you'll likely want to update your estate strategy to include your spouse as a beneficiary. Conversely, divorce may necessitate removing an ex-spouse from your strategy.

Birth or Adoption of a Child
Welcoming a new child into your family means updating your strategy to include them as a beneficiary. You'll also want to appoint guardians if something were to happen to you and your partner.

Death of a Loved One
The passing of a spouse, child, or another beneficiary should prompt a review of your estate strategy to ensure assets are distributed according to your new wishes.

Change in Financial Status
Significant changes in your assets, whether through inheritance, investments, or property acquisitions, should trigger a review of your estate strategy.

Relocation to Another State or Country
Laws regarding estates vary by jurisdiction. If you move, it's essential to review your strategy to ensure it complies with local laws.

Changes in Health
If you're diagnosed with a serious illness or experience a decline in health, you should review and update your healthcare directives and powers of attorney.

The question of "How often should I update my estate strategy?" comes down to a balance between regular reviews and responding to major life events. While a general timeline of every 3-5 years is a good rule of thumb, life changes should always prompt a review of your estate strategy. Your strategy should be a reflection of your current circumstances, wishes, and the legal landscape. By staying proactive and updating your estate strategy accordingly, you can ensure that your loved ones are taken care of and your legacy is protected.

Jeff Spitzmiller is the CEO of Ohana Wealth & Life Planning based in Cincinnati, OH. Ohana specializes in life and financial planning for professionals in the healthcare and university fields. The firm is an independent financial advisor and a fee-only fiduciary. Jeff and the firm also enjoy volunteering and giving back to the local community. You can reach Jeff at jeff@ohanaplanning.com.