Set It and Forget It? Why Your Estate Plan Probably Needs a Checkup

Did you create a will or trust years ago and assume the job was done? Plenty of people do, and it’s an understandable mistake. Estate planning often gets treated like a single event rather than an ongoing relationship with your own life. But your circumstances change, the law changes, and an outdated plan can fail to do the one thing you created it to do: protect the people you love.

So how often should you actually look at your estate plan? A good rule of thumb is every three to five years, but certain life events should trigger an immediate review, regardless of when your last update happened.

Life Changes That Should Send You Back to the Drawing Board

Marriage, divorce, the birth of a child, a death in the family, a significant change in assets, or a move to a different state can all affect whether your existing documents still reflect your wishes. Divorce, in particular, carries real legal weight in New Jersey. Under N.J.S.A. 3B:3-14, a divorce or annulment automatically revokes certain provisions in your will that favor your former spouse, including any nomination of that spouse as executor. That sounds convenient, but it can also create gaps. If your former spouse was your named guardian for minor children or your primary beneficiary, you’ll need updated documents that reflect your actual current intentions rather than relying on what the statute fills in by default.

Beyond family changes, think about your financial picture too. Did you start a business? Buy a second property? Receive an inheritance? Each of these shifts can change how your estate should be structured, and whether tools like trusts make more sense than they did before.

The Documents Themselves Deserve a Second Look

It isn’t just your will that needs revisiting. Powers of attorney, health care directives, and beneficiary designations on retirement accounts and life insurance policies often get overlooked entirely. Here’s an uncomfortable truth: a beneficiary designation on a 401(k) can override what your will says, so if that form still lists an ex-spouse or someone who has since passed away, your will alone won’t fix the problem.

Naming guardians for minor children also deserves a fresh look every few years. The person you trusted a decade ago may no longer be the right fit, whether due to distance, health, or simply how your relationship has evolved.

When in Doubt, Have It Reviewed

An outdated estate plan can create just as much confusion as having no plan at all, sometimes more, because everyone assumes the paperwork already handles it. A periodic review helps ensure your documents actually reflect your wishes today, not the version of your life that existed when you first signed them.

If it’s been a while since you looked at your will, trust, or powers of attorney, our Summit estate planning lawyers at Dempsey, Dempsey & Sheehan would be happy to review your existing plan and recommend updates where they’re needed. Contact us today to schedule a consultation.

Source:

law.justia.com/codes/new-jersey/title-3b/section-3b-3-14/