Why Reviews Matter
An estate plan is not a filing cabinet document. It is an active system that must stay aligned with your life, your assets, and the law. When it drifts out of alignment, the consequences are real, assets going to the wrong person, an ex-spouse retaining control, or a trust that owns nothing.
These numbers represent real families where the plan failed, not because it was never created, but because it was never maintained. An annual review takes 15 to 20 minutes. The cost of not reviewing is measured in years of probate, family conflict, and assets lost to the wrong person.
The Annual Review
Every estate plan should be reviewed at least once per year. The annual review is not a full document rewrite, it is a focused check on the items that catch the most common failures. Complete this with your financial advisor during your annual planning meeting.
1. Beneficiary Designations
Confirm retirement account beneficiaries
IRAs, 401(k), 403(b), pension, primary and contingent. These pass by designation, not by will or trust.
Confirm life insurance beneficiaries
Primary and contingent on every policy. Verify alignment with plan structure.
Confirm annuity and HSA beneficiaries
Often overlooked. Verify primary and contingent designations.
Check POD/TOD designations on bank and brokerage accounts
These override the will and trust. Confirm they still match your intentions.
2. Trust Funding
Were new accounts opened this year?
Any new bank, brokerage, or investment account should be titled in the trust or have a POD/TOD to the trust.
Was real estate acquired or sold?
New property must be deeded to the trust. Sold property should be removed from the asset schedule.
Were business interests created or restructured?
New LLC interests, partnerships, or corporate shares may need to be assigned to the trust.
3. Named Agents and Fiduciaries
Is your executor still willing and able to serve?
Consider age, health, proximity, and willingness. Confirm your backup is still appropriate.
Is your trustee / successor trustee still appropriate?
A trustee who was the right choice five years ago may not be today.
Are your POA agents still the right people?
Both financial and healthcare. Confirm they know they are named and understand the role.
Is your guardian designation still current?
If children have turned 18, this may no longer apply. If circumstances have changed, update.
4. Life Events Since Last Review
Marriage, divorce, or separation
Birth, adoption, or death in the family
Move to a different state
Significant change in income or net worth (20%+)
Retirement or change in employment
Health diagnosis for you or a dependent
5. Document Validity
Did you move to a new state since documents were signed?
POAs, healthcare directives, and trust provisions may not be fully recognized across state lines.
Have any state laws changed that affect your plan?
Tax exemptions, trust taxation, probate thresholds, and community property rules change over time.
Are all documents still properly signed, witnessed, and notarized?
6. Insurance Review
Is life insurance coverage still adequate?
Coverage needs change as children grow, debts decrease, and income changes.
Are policies performing as expected?
Universal and variable policies may need premium adjustments.
Is long-term care insurance in place or under consideration?
7. Digital Assets
Were new digital accounts or crypto wallets opened?
Is your digital asset inventory current?
Does your designated person have access to your password manager?
8. Document Storage
Do your agents know where to find the documents?
If you moved or changed storage, update everyone who needs access.
Are digital backups current?
The 3-year structural review
In addition to the annual check, schedule a structural review every three years with your advisor and attorney. The structural review looks at whether the overall structure, trust type, distribution strategy, tax planning, still fits your situation. The annual review catches drift. The 3-year review catches structural changes.
Life Events That Trigger an Immediate Review
Some changes cannot wait for the annual review. The events below should trigger a review within 30 to 60 days. Each event lists the specific documents and items that must be checked.
Marriage
Review: Will or trust distribution plan, beneficiary designations on all accounts, POA and healthcare agent designations, guardian nominations, account titling.
Action: Update beneficiaries to include spouse. Consider whether a trust is now appropriate. Retitle jointly held assets if needed. Update healthcare directive to include spouse as agent.
Divorce or Separation
Review: Every document, will, trust, POAs, healthcare directive, beneficiary designations, account titling.
Action: Remove ex-spouse from all designations and fiduciary roles immediately. Some states automatically revoke spousal designations at divorce, but many do not. Retirement account designations (governed by ERISA) are not automatically revoked. Do not assume anything has been handled.
Birth or Adoption of a Child
Review: Guardian nomination, will or trust distribution plan, life insurance coverage.
Action: Name a guardian. Add the child to the distribution plan. Consider whether to create or update a trust for minor children. Review life insurance to ensure adequate coverage.
Death of a Spouse, Beneficiary, or Named Agent
Review: All documents naming the deceased. Beneficiary designations, fiduciary roles (executor, trustee, POA agent, guardian).
Action: Activate successor designations or name new agents. Update all beneficiary designations. Review whether plan structure still makes sense for the surviving family.
Move to a Different State
Review: All documents, especially POAs, healthcare directives, and trust provisions.
Action: Consult an attorney in the new state. Many documents are portable, but some are not. Community property vs. common law, probate thresholds, and healthcare directive requirements vary significantly.
Purchase or Sale of Real Estate
Review: Trust asset schedule, account titling.
Action: Deed new property into the trust. Remove sold property from the trust schedule. If property is in another state, confirm the trust is recognized there to avoid ancillary probate.
Starting, Selling, or Dissolving a Business
Review: Trust asset schedule, buy-sell agreements, key-person insurance, succession plan.
Action: Assign new business interests to the trust (review operating agreement for transfer restrictions). Upon sale, update the plan to reflect the liquidity event and new asset allocation.
Significant Change in Income or Net Worth (20%+)
Review: Life insurance adequacy, distribution plan, trust structure, tax exposure.
Action: A major increase may warrant advanced planning, irrevocable trusts, gifting strategies, or charitable vehicles. A major decrease may mean simplifying the plan or reducing insurance.
Retirement
Review: Beneficiary designations on retirement accounts, distribution strategy, healthcare coverage, long-term care planning.
Action: Review required minimum distributions and how they interact with the estate plan. Consider Roth conversions for estate tax efficiency. Confirm healthcare directive and POA are current.
Diagnosis of Serious Illness or Disability
Review: Healthcare directive, healthcare POA, financial POA, trust provisions for incapacity.
Action: Confirm agents know they are named and understand your wishes. Provide copies of healthcare documents to all treating physicians. If a dependent receives the diagnosis, evaluate special needs trust.
Major Tax Law Changes
Review: Estate and gift tax exemptions, trust taxation rules, income tax brackets.
Action: The federal estate tax exemption is scheduled to sunset in 2026 to approximately half the current level. State estate tax thresholds vary widely. Review with your advisor and attorney when federal or state law changes.
Grandchildren
Review: Distribution plan, generation-skipping provisions, 529 plan beneficiaries.
Action: Consider whether grandchildren should be included in the distribution plan. Review generation-skipping transfer tax implications. Update 529 beneficiaries if establishing education funding.
Quick Reference: What to Review by Event
| Life Event | Documents to Review | Items to Check |
|---|---|---|
| Marriage | Will/Trust, POAs, Healthcare Dir. | Beneficiaries, agents, distribution, titling |
| Divorce | All documents | Remove ex-spouse from every role and designation |
| New child | Will/Trust, Life Insurance | Guardian, distribution, coverage adequacy |
| Death | All docs naming deceased | Successor agents, beneficiaries, plan structure |
| State move | POAs, Healthcare Dir., Trust | Document validity, state-specific requirements |
| Real estate | Trust asset schedule | Deed to trust, remove sold properties |
| Business change | Trust, buy-sell, key-person ins. | Interest assignment, succession plan |
| Net worth change | Trust, Life Insurance | Plan structure, insurance, tax exposure |
| Retirement | Retirement accts, Healthcare Dir. | RMDs, beneficiaries, incapacity planning |
| Illness | Healthcare Dir., POAs, Trust | Agent awareness, physician copies, POA scope |
| Tax law change | Trust, Will | Exemptions, trust taxation, state thresholds |
| Grandchildren | Trust, 529 plans | Distribution, GST provisions, education funding |
This guide is provided for informational and organizational purposes only. It does not constitute legal, tax, or financial advice. Estate planning involves state-specific laws and individual circumstances that require professional guidance. Consult with your financial advisor, attorney, and tax advisor before making decisions about your estate plan.
When a life event triggers a beneficiary review, use the Beneficiary Designation Review Worksheet to document every account. For clients starting from scratch, the Estate Planning Checklist walks through the full process from gathering to signing. Divorce is the life event most likely to leave a plan wrong without anyone noticing; the fourteen-item post-divorce estate planning audit lists exactly what to re-check.