One of the biggest mistakes you can make when it comes to your estate plan is to let your estate planning documents become outdated. Now, most people will create their estate plan, sign the documents, and file the documents away never to look at them again.
For many, this does not present a problem, especially if the person remains single their entire life, doesn’t own much property, and doesn’t come into a large inheritance. However, the majority of people who create an estate plan should review it periodically to ensure that the documents have not become outdated based on where the person is in life at that moment.
The Dangers of Outdated Documents
Estate planning documents are so important that you should review them every so often and always immediately after a major life event. Life events that should trigger an estate planning document review include the following:
- The birth of a child
- Inheriting a large sum of money
- Receiving a major promotion or raise at work
- You got divorced
- You got remarried
- Someone named in your will or other estate documents passed away
- You moved to a new state
- Relationship with a power of attorney or trustee has ended
This above is not an exhaustive list. You can review the documents in your estate plan as often as you’d like or after any type of life event you experience. It’s important to note that you should always review these documents with an experienced estate planning attorney in order to make sure that they are updated correctly.
How Do Estate Planning Documents Become Outdated?
Estate planning documents can become outdated in relation to beneficiary documents, asset ownership documents, and powers of attorney.
Beneficiary Documents
One of the most common ways in which estate planning documents become outdated is through beneficiary documents becoming outdated. A will does not have an impact on who inherits your assets like IRAs, life insurance, and annuities.
All three of these assets must have beneficiary documents signed and dated by you, naming who will receive these assets upon your death. If the beneficiary documents have expired, or you have not changed them based on your life right now, then the original person named will receive your assets upon your death.
Ownership of an Asset
Another way in which an estate plan becomes outdated is when you fail to update the ownership of an asset. It’s possible that you own assets solely and jointly with your spouse, a friend, or an adult child. As you age, and as your life changes, you should review these documents to ensure that any jointly owned assets don’t need to be changed before it’s too late.
Powers of Attorney
Every estate plan should have at least two powers of attorney in it: one for your financial matters and one for your medical matters. You will more than likely need the medical power of attorney before your will. Many people either do not name powers of attorney or fail to update who is named as power of attorney in their estate plan.
Changes in the Law
If there have been changes in the laws that govern estate planning, you should have an attorney review your plan and make the necessary adjustments so that the plan reflects these changes.
Schedule a Consultation with an Estate Planning Attorney Today
If you need to create an estate plan or have your current one reviewed, it is in your best interest to speak with an estate planning attorney from The TERRY LAW FIRM at your earliest convenience. Contact our office to schedule a consultation with a member of our team. Estate planning helps secure your future and the future of your family upon your death. Protect your assets and your loved ones with an updated estate plan.
How do I know if my estate plan is outdated?
Your estate plan is likely outdated if it was drafted more than three to five years ago, if you have married, divorced, or remarried, if a beneficiary or named trustee has died, if you have had children or grandchildren, if you have moved to a different state, or if the value or composition of your assets has changed significantly.
Does moving from one state to another invalidate my estate plan?
Not necessarily, but it can create problems. A will valid in one state is generally recognized in another, but healthcare directives, powers of attorney, and trust provisions are governed by state law and may not be fully effective if drafted for a different state. Clients who have moved between Washington and Utah should have their documents reviewed.
What changed in 2025 and 2026 that might affect my estate plan?
Two significant changes affect estate plans as of 2025-2026. The One Big Beautiful Bill Act increased the federal estate tax exemption to $15 million per person effective January 1, 2026, which may change the tax strategy in existing trusts. IRS final regulations effective January 1, 2025 changed required minimum distribution rules for inherited IRAs, affecting any plan that uses a trust as an IRA beneficiary.
What happens if a named trustee or executor has died or is no longer suitable?
If your named trustee or executor has died, moved away, or is no longer someone you trust, you need to update your documents to name a new successor. An estate plan with no functioning trustee or executor creates serious problems for your family and may require court intervention.
Can I just cross out and change things in my will?
No. Handwritten changes to a will are generally not legally effective and can create confusion or invalidate provisions. Changes to a will must be made through a formal codicil executed with proper witnesses, or by drafting a new will. Trusts are amended through a written trust amendment signed with proper formalities.
Does Terry Law Firm offer estate plan review consultations in both Washington and Utah?
Yes. Terry Law Firm offers estate plan review consultations at its Sumner, WA and St. George, UT offices. We review your existing documents, identify gaps or outdated provisions, and recommend updates to bring your plan current with your life circumstances and current law in your state.
