When Should You Update Your Estate Plan? 7 Life Events That Trigger a Review

When Should You Update Your Estate Plan? 7 Life Events That Trigger a Review

Creating an estate plan is a huge accomplishment — but it's not a one-and-done deal. Life changes, and your estate plan needs to change with it. At The Taormina Firm, one of the things we emphasize with every client from Kirkwood to Chesterfield, O'Fallon to Clayton, is that your estate plan should be a living document that evolves as your life does.

So how do you know when it's time for an update? Here are seven life events that should prompt you to pick up the phone and schedule a review.

1. Marriage or Remarriage

Getting married is one of the most significant events that affects your estate plan. Under Missouri law, marriage does not automatically revoke an existing will, but it can change how your assets are distributed if your will doesn't account for your new spouse.

If you're remarrying — especially if either spouse has children from a prior relationship — updating your estate plan is essential. You'll want to revisit your will or trust, update your beneficiary designations on life insurance and retirement accounts, and ensure your new spouse is (or isn't, depending on your wishes) named in your power of attorney and health care directive.

2. Divorce

Divorce is perhaps the most urgent trigger for an estate plan update. In Missouri, Section 474.420 of the Missouri Revised Statutes automatically revokes any provisions in your will that benefit your former spouse upon divorce. However, this doesn't automatically apply to beneficiary designations on life insurance policies, retirement accounts, or other financial accounts.

If you don't update those designations, your ex-spouse could still receive those assets — even if that's the last thing you'd want. Don't wait; update your plan as soon as your divorce is finalized.

3. Birth or Adoption of a Child

Welcoming a new child into your family is a joyful event — and it should also prompt a review of your estate plan. You'll want to make sure your will or trust includes provisions for your new child, update guardian nominations if needed, and review how your assets will be distributed among all your children.

If you already have a revocable living trust, adding a new child is typically a simple amendment. If you don't have an estate plan yet, the birth of a child is the perfect reason to get started.

4. Death of a Beneficiary or Named Agent

If someone you've named in your estate plan — whether as a beneficiary, executor, trustee, guardian, or agent under your power of attorney — passes away, you need to update your documents. Operating with outdated designations can create legal complications and delays for your family.

This is also a good time to review your successor designations. Your estate plan should always have backup names in place for every key role.

5. Significant Change in Assets or Financial Situation

Did you buy a new home in Ballwin? Inherit money from a relative? Start a business in Maryland Heights? Receive a significant raise or come into a large sum of money? Any major financial change should prompt a review of your estate plan.

You'll want to make sure new assets are properly titled — especially if you have a revocable living trust. Assets that aren't transferred into your trust will still go through probate, defeating one of the main purposes of having a trust in the first place.

6. Moving to or from Missouri

Estate planning laws vary significantly from state to state. If you've recently moved to Missouri from another state, your existing estate plan may not fully comply with Missouri law. For example, Missouri has specific requirements for will execution, power of attorney forms, and health care directives that differ from other states.

Similarly, if you own real estate in multiple states, your estate plan needs to account for the laws in each jurisdiction. A Missouri estate planning attorney can review your existing documents and recommend any necessary updates.

7. Changes in Tax Laws

Federal and state tax laws change regularly, and those changes can affect your estate plan. For example, the current federal estate tax exemption is historically high but is scheduled to decrease significantly. If you haven't reviewed your estate plan since the last major tax law change, it's time to check in.

At The Taormina Firm, we monitor tax law changes and proactively reach out to clients whose plans may be affected. But it's always a good idea to schedule a review every three to five years, even if none of these specific life events has occurred.

The Bottom Line: Review Your Plan Regularly

Your estate plan is only as good as it is current. An outdated plan can be worse than no plan at all, because it can create confusion and lead to outcomes you never intended.

If any of these life events has happened to you recently — or if it's simply been a few years since you last looked at your documents — contact The Taormina Firm. We serve families across the St. Louis metro area, from Webster Groves and University City to Des Peres and Florissant. Let's make sure your plan still reflects your wishes.