Is It Time to Review Your Estate Plan?

It might be time to revisit your estate planning documents if you haven’t looked at them recently, or don’t have any at all. Especially if you’re over 60, updating your estate plan should be a top priority. Of course, if you do not have a plan in place, you should not be waiting until you are 60 to get started.

Why Review Your Estate Plan?

We often think about estate planning as something to do later in life or during major life transitions. However, if you’ve crossed the threshold of 60 and haven’t touched your estate plan in decades, it’s crucial to update your documents. Regular reviews, ideally every five years, ensure that your plans remain aligned with your current life situation and future wishes.

Estate Planning by Age Range

Here’s a quick guide to estate planning at various life stages:

Ages 18-30

At this stage, everyone should have a durable power of attorney, a health care proxy, and a HIPAA release. These documents are essential to ensure that trusted individuals can make decisions on your behalf if you become incapacitated.

Ages 30-40

As you begin to accumulate assets, get married, or have children, it's time to create a comprehensive estate plan. Update your durable power of attorney, health care proxy, and HIPAA release, as the individuals you trusted at 18 (likely your parents) might not be your preferred choice now.

Ages 40-60

If you have a robust estate plan in place, you may not need to make any changes in your 40s and 50s unless there’s a significant change in your circumstances.

Ages 60-70

Entering your 60s marks a crucial period to review your estate plan thoroughly. Your marital status might have changed, your children are likely grown, and you may have grandchildren. You’ve probably accumulated more investments and assets, and you might be retired or nearing retirement. The individuals you appointed at 35 may no longer be the best choices to act on your behalf.

Ages 70+

From 70 onwards, it’s wise to review your estate plan every five years. Health conditions, tax laws, and care programs evolve, making it essential to adapt your plan to current circumstances.

When to Revisit Your Estate Plan

Beyond age milestones, several life events warrant a fresh look at your estate plan:

• Marriage: Update your plan to include your spouse as a primary beneficiary and decision-maker.

• Divorce: Remove your ex-spouse from your estate plan to ensure they no longer have control or benefit from your assets.

• New Relationship: If you’re over 60 and in a serious relationship, particularly if cohabitating, review your plan to potentially include your new partner.

• Children: Ensure your estate plan provides for your children and appoints a guardian in case of your death or incapacity.

• Disability: If you or a beneficiary becomes disabled, you’ll need to adjust your plan to protect and manage assets accordingly.

• Increased Wealth: If your assets exceed state or federal estate tax thresholds, consider strategies to minimize taxes.

• Relocation: Moving to a different state or country? Verify that your estate plan complies with local laws.

The Bottom Line

If you’re over 60 and it’s been years since you updated your documents, now is the time. Regularly reviewing and updating your estate plan ensures it accurately reflects your current situation and secures your legacy for the future.