When to Revise Your Estate Plan

April 14th, 2025
Posted By
Sarah M. Litowich
Senior couple, meeting and investment with a financial advisor, lawyer or woman consulting on a contract, loan or deal. Signature, documents and people with a mortgage, debt or saving in retirement
Once you’ve created an estate plan, it needs to be updated on a regular basis. Importantly, these documents must be reflective of your current wishes, and your goals may change over time. While it’s a good idea to revisit your estate plan at least every few years, there are also certain events that should trigger a review to ensure it aligns with your objectives. Here are several situations in which you should consider revising your estate plan:

Your Health Declines

A major reason to consider revising your estate plan is declining health. If you’ve been diagnosed with a chronic illness or suffer from a disability, it’s essential to make sure your estate planning documents are in place — including your healthcare power of attorney. In the event you wait until you become incapacitated to make changes, your estate plan could be rendered invalid by a judge.

Marriage

It’s important to review and revise your estate plan upon marriage. You may want to ensure your spouse receives certain property, is named the executor of your estate, or has power of attorney if you become unable to manage your own financial affairs. Similarly, if you do not want your spouse to inherit property that they would otherwise be entitled to, an estate plan can help ensure the asset goes to a beneficiary of your choosing.

Divorce

If you divorce your spouse, you should update your estate plan. Although Oregon law automatically revokes any provisions in your will or a trust that name an ex-spouse, relying on this can result in unintended consequences. For instance, you might want a specific person to inherit the items your spouse would have received. Without specifically naming them as a beneficiary in your will or trust, they might not receive the bequest. Notably, be sure to make the necessary changes to any beneficiary designations upon divorce — parting ways with your spouse would not automatically revoke them as a beneficiary on certain retirement accounts and insurance policies.

The Birth or Adoption of a Child

Upon the birth or adoption of a child, you will need to revise your estate plan to ensure they are included. This can involve making changes to your will by naming the child as a beneficiary and appointing a guardian who would care for them in the unlikely event that you pass while they are a minor. You may also wish to set up a trust that will distribute assets at certain milestones in the child’s life. If the child has special needs, you may want to incorporate a special needs trust into your estate plan to ensure the child is cared for while still being eligible for government assistance.

Your Children or Grandchildren Become Adults

When your children or grandchildren reach the age of majority, you should reevaluate your estate plan and consider whether you’d like to make modifications or implement new strategies. For instance, if your family owns a business, you might consider including your child or grandchild in a business succession plan. You might also set up a trust to provide them with their inheritance in installments or name them as beneficiaries on a financial account.

Your Financial Situation Changes

If you receive a large inheritance or acquire a substantial amount of assets, it may be time to update your estate plan to ensure it aligns with your current wishes. Specifically, the following changes in your financial situation should trigger a review:
  • You receive a large settlement from a lawsuit
  • You have paid off substantial debt
  • You have sold or acquired real estate
  • You see significant market gains or losses in your investment portfolio
  • You changed jobs or your salary increased
  • You have sold or acquired a business
Any major changes to your financial circumstances can not only impact your ability to provide for your loved ones, but they can also affect your tax situation and create opportunities for giving to a charitable cause that you believe in.

One of Your Beneficiaries Passes Away

If a named beneficiary passes away, it’s a good idea to revise your estate plan. Without updating it, the assets intended for the deceased beneficiary may not be distributed in accordance with your wishes. It’s best to name at least one contingent beneficiary in a will or trust who will receive the assets in the event your primary beneficiary predeceases you.

The Tax Laws Change

Changes to the tax laws can warrant a review of your estate plan, especially if minimizing the tax burden your loved ones might face is one of your estate planning objectives. While tax laws can affect how much of your estate is passed on to loved ones, versus toward tax payments, it’s vital to evaluate your estate plan in response to any new legislation.

Contact an Experienced Oregon Estate Planning Attorney

Keeping your estate plan up to date is critical to ensure your future wishes are met and your loved ones are provided for the way you intend. Based in Salem, Litowich Law can guide you and your family through the estate planning process and work with you to revise your estate plan when necessary. We welcome you to contact us for a consultation.
Categories: Estate Planning