Author: Ujala Umair
Although about 70% of Americans do not have an estate plan, those who do still need to maintain it. Estate plans frequently need to be revised to reflect any significant changes in your life; they are not “set it and forget it.” This guarantees that your wishes will be carried out, that your assets will be dispersed effectively, and that your loved ones won’t be surprised when you pass away.
This explains the importance of frequent modifications, how to maintain your plan’s alignment with your objectives, and the significant role financial advisors can play in this process for their clients.
Every year, millions of Americans relocate, and they often overlook updating their estate planning documents, which can significantly disrupt their plans, according to experts.
US real estate 2025 overview
A 2025 Caring.com survey of over 2,500 people found that only 24% of Americans have a will. Even worse, according to the survey, 11% of respondents have relocated away from the location where their estate was first drafted, and nearly 25% of respondents have not updated their estate planning paperwork since they were first created.
Laws about inheritance, health care directives, and powers of attorney (POAs) might differ greatly between states. Your best-laid wishes may be disregarded if your estate documents don’t adhere to state regulations, according to experts.
Why the US estate plan needs to be updated frequently
Estate plans are dynamic documents that need to change over time. The way your estate is managed might be greatly impacted by changes in your personal life, financial situation, or state and federal tax laws.
An outdated estate plan can cause needless problems for you and your loved ones, even while having one—which should contain a Will, Trust, Power of Attorney, and Advanced Health Care Directive—is preferable to having none at all. In addition to outlining your desires if you become incapacitated or unable to make decisions for yourself, an estate plan specifies what you want to happen to your assets when you pass away.
How frequently should your estate plan be updated?
Although most experts advise reviewing your estate plan every two years and conducting a more full study and update every five years, there is no hard rule regarding how frequently you should update your plan. Anytime there is a significant change that could affect your plan, it should ideally be updated.
However, you may update as frequently as necessary with a digital estate planning tool, and each update can be done swiftly and simply. You may ensure that your documentation reflects any changes in your life without having to wait years to meet with an estate attorney.
However, it’s crucial to recognize when changes in your life can necessitate revising your estate plan.
Findings
The fact that over half of those who have built trust did so expressly to lessen family strife is another intriguing discovery. Additionally, “more than half of respondents said creating an estate plan would make them feel more successful.”
Ultimately, the study revealed that over one-third of respondents didn’t think they had enough assets to worry about having an estate plan, 29% said they weren’t wealthy enough to worry about it, and 25% said they hadn’t discussed making an estate plan with family members because they dislike discussing or contemplating their own death.
Ultimately, the study revealed that over one-third of respondents didn’t think they had enough assets to worry about having an estate plan, 29% said they weren’t wealthy enough to worry about it, and 25% said they hadn’t discussed making an estate plan with family members because they dislike discussing or contemplating their own death.
Professionals in trust and estate planning can undoubtedly do a better job of communicating the real advantages and principles of performing sound estate planning. Together, we must educate the public on the true advantages of solid estate planning and how to create one.
How can financial advisers help clients keep their estate plan updated?
Plan frequent evaluations:
This can be as easy as adding estate planning to your yearly or quarterly client evaluations. Certain reasons, like relocating to a different state, might be evident, but others, like arguments within the family, might not. Make the appropriate inquiries, such as whether they have experienced any notable changes in their financial situation or whether they have acquired any non-financial assets that they wish to pass on to their offspring.
Maintain current documentation:
Documentation is crucial! Therefore, be sure to assist your clients in keeping all relevant documents, such as property deeds and financial statements, that may have an impact on their estate plans.
Keep up with any changes to the law:
Stay up to date on any legal developments that can affect your client’s estate strategy. Sign up for podcasts or newsletters from wealth.com.
Check out the “When to Update an Estate Plan” edition of The Practical Planner podcast, which is presented by Thomas Kopelman, Head of Community at wealth.com and co-founder of AllStreet Wealth, and Anne Rhodes, Chief Legal Officer at wealth.com, if you want to learn more about when an estate plan should be updated.