Quick summary
Estate plan maintenance is not a one-and-done task. Annual reviews plus event-driven updates protect your heirs, minimize disputes, and help you adapt to tax and legal changes. Below is a practical, professional guide to what to check each year, what events should trigger an immediate review, and how to coordinate with professionals.
Why annual reviews matter (and what I see in practice)
In my practice I regularly find estate plans that are outdated soon after they were created—beneficiaries left off because account paperwork changed, or a divorce that wasn’t reflected in a will. An annual check reduces these errors and gives you a reliable record for executors and trustees. Annual reviews catch small issues before they become expensive problems, and they’re also the easiest way to keep documents synchronized across accounts and advisors.
Authoritative guidance recommends staying informed about federal and state rules that affect estate planning (for example, federal estate and gift tax thresholds change periodically and state-level estate or inheritance taxes vary). Check the IRS and Consumer Financial Protection Bureau for current guidance and plain-language materials (IRS: https://www.irs.gov, CFPB: https://www.consumerfinance.gov/).
Annual estate plan checklist
Treat this as a practical, repeatable checklist you can use each year. I advise clients to keep a running log and to update the date on each document when a review is completed.
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Inventory documents and assets
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Confirm you have current copies of your will, trust documents, durable powers of attorney, advance health care directive (living will), and any trust amendments.
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Match assets to documents: checking bank accounts, IRAs, 401(k)s, life insurance policies, annuities, and titles to real estate.
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Review beneficiary designations
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Verify beneficiaries on retirement accounts, life insurance, and payable-on-death (POD) accounts. These controls often override wills, so alignment is critical.
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Verify executor, trustee, agent, and guardian choices
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Confirm that the people you named are willing and able to serve. Replace or add successor nominees where needed.
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Update for changes in assets or business interests
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Add newly acquired assets (business interests, rental property, cryptocurrency) into the plan or into an appropriate trust structure.
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Revisit tax and gifting strategies
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Review whether existing gifting plans or trust tax provisions still suit your goals—consult a tax professional as federal and state tax rules change.
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Review distribution rules and special provisions
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For families with minor children or special-needs beneficiaries, confirm trust distribution powers and language are still appropriate.
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Check powers of attorney and health-care directives
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Confirm these documents are current and that named agents understand their roles and location of documents.
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Secure and document where originals are kept
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Make sure executors/trustees know where originals and passwords are located. Consider a secure physical safe and a digital vault for passwords.
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Confirm funding of trusts
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For revocable living trusts, ensure title and beneficiary changes moved assets into the trust where intended.
Event-driven triggers that require an immediate review
Some changes demand more than an annual check. After any of the following, schedule a prompt review with your estate attorney or financial planner:
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Marriage or divorce
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Marriage often changes beneficiary considerations and may create spousal elective-share issues. Divorce may revoke certain beneficiary or will provisions depending on state law.
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Birth, adoption, or death in the family
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Add guardianship provisions and funding for minors. An unexpected death in the family may require successor updates.
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Substantial change in wealth
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Receiving an inheritance, selling a business, or a large investment gain can trigger new tax planning and trust funding needs.
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Relocation or change in citizenship
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Moving states or countries can change probate venue and tax exposure; different states have different trust and probate rules (see our guide on updating plans after relocation: Updating Estate Plans After Major Relocations or Citizenship Changes).
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Diagnosis of a chronic or terminal illness
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Confirm health-care directives, powers of attorney, and long-term care funding strategies.
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Change in family dynamics
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Marriage of a child, blended family situations, or disputes among heirs call for careful rephrasing of intent and consideration of equitable vs. equal distributions (see: Planning for Blended Families: Estate Strategies to Prevent Conflict).
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Addition of digital or nontraditional assets
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New classes of assets—cryptocurrency, domain names, social media accounts—need access instructions and potential trust funding. For a how-to, see our digital estate article: How to Inventory and Secure Digital Accounts for Your Estate.
Practical guidance for common plan elements
Below are specific things to check for the most common documents and accounts.
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Wills and trusts
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Confirm the will’s guardian nominations and the trust’s distribution rules still reflect your goals. Review pour-over wills and funding of revocable trusts.
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Retirement accounts and IRAs
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Beneficiary designations control these accounts. Periodically check for contingent beneficiaries and coordinate with your estate documents.
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Life insurance
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Check both beneficiaries and whether death benefits provide sufficient liquidity for estate settlement costs and taxes.
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Business interests
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Review buy-sell agreements, succession provisions, and whether trust structures are needed to keep a business running after your death.
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Digital assets and passwords
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Maintain an encrypted inventory and grant a trusted agent access instructions consistent with platform terms of service.
When to call an attorney, financial planner, or tax pro
You should consult a specialist when:
- You experience a major life event listed above.
- You acquire a complex or unusual asset (private business interest, significant crypto holdings, international property).
- State law changes affect probate, estate tax, or trust administration in your jurisdiction.
- You want to implement advanced strategies (irrevocable trusts, generation-skipping transfers, charitable remainder trusts).
In my practice I coordinate with trusted estate attorneys and CPAs to turn review notes into properly drafted, legally enforceable documents. Small drafting errors can have outsized consequences.
Common mistakes and how to avoid them
- Out-of-sync beneficiary designations: Use the annual checklist to reconcile account beneficiaries with your will/trust.
- Unfunded trusts: Create a funding plan and confirm transfers of titles or beneficiary designations.
- Hidden assets: Maintain an up-to-date inventory and share it securely with your executor or attorney.
- Assuming state law won’t affect your plan: Check for state-level estate or inheritance taxes and procedural differences.
Example annual review timeline (sample)
- January: Review beneficiary forms for retirement accounts and insurance policies.
- March: Confirm trust funding and update trust amendments if needed.
- June: Verify powers of attorney and health directives; contact named agents.
- September: Reconcile business and real estate ownership documents.
- November: Finalize any tax-driven planning changes and refresh the inventory for the coming year.
Short FAQs
Q: How often should I review my estate plan?
A: At minimum once a year and immediately after major life or financial events.
Q: Does a beneficiary designation override my will?
A: Yes—beneficiary designations on life insurance and retirement accounts generally bypass the will; keep them coordinated.
Q: Can I update documents myself?
A: Minor administrative changes may be possible, but substantial edits or trust restatements should be drafted or reviewed by an attorney to ensure legal effect.
Final advice and next steps
Estate plan maintenance is a modest annual time investment that prevents confusion, expense, and family conflict later. Start by scheduling a fixed annual review date, use the checklist above, and keep a secure record of documents and passwords. When in doubt, involve an estate attorney and CPA to confirm legal wording and tax impacts.
This article is educational and not legal advice. For guidance tailored to your situation, consult a licensed estate planning attorney or tax professional.
Sources and further reading
- Internal Revenue Service (IRS) — estate and gift tax information: https://www.irs.gov
- Consumer Financial Protection Bureau — estate planning basics: https://www.consumerfinance.gov/
- FinHelp related articles: “Essential Estate Planning Documents Everyone Should Have” (https://finhelp.io/glossary/essential-estate-planning-documents-everyone-should-have/), “How to Inventory and Secure Digital Accounts for Your Estate” (https://finhelp.io/glossary/how-to-inventory-and-secure-digital-accounts-for-your-estate/), and “Planning for Blended Families: Estate Strategies to Prevent Conflict” (https://finhelp.io/glossary/planning-for-blended-families-estate-strategies-to-prevent-conflict/).
Professional disclaimer: The content here is educational. It does not replace personalized legal or tax advice. For a binding review or document drafting, consult a qualified attorney or licensed tax professional.
