There is no “right” answer to the question of how often you should update your estate plan. It all depends on what, if anything, has changed.
A better question is, when should you review your estate plan? Reviewing it gives you the opportunity to understand whether or not you need to make updates. It’s generally recommended that you do so no less than three to five years or whenever they have some type of major life event.
Major life events often involve family changes like births, deaths, marriage and divorce. They can also involve significant changes to your assets.
Significant asset changes
Some people set up their estate plans to automatically include any new assets acquired. That’s not always the best option, though — especially if the assets are considerable. That’s because their addition could change the estate’s susceptibility to taxes.
It is better to ensure your plan accurately reflects what you do own, and to remove mention of things you no longer own. Imagine, for instance, you sell an expensive piece of jewelry you inherited when you need some money. If it is still mentioned as going to someone in the estate plan, they might believe that someone stole it during your final years or when helping clear the house after your death.
Changes in estate planning laws
Estate planning laws change from time to time. Some of those changes might not affect you. For example, the figure for the federal estate tax exemption has sat at over $10 million since 2017, so the regular increases in it are of no relevance for the majority of the population. If it were to be reduced significantly, as has been proposed at times, then more people would need to revise their estate plans because of it.
Consulting with an estate planning professional can help you know whether there are changes to the law or changes in your life that require changes in your estate plan.