By Andy L. Gitkind | Gitkind Law Firm | Boulder County Estate Planning
Creating an estate plan is an important milestone—but it’s not a one-time event. Life changes. Laws change. The people and priorities that shaped your original plan may look very different a decade later.
One of the most common estate planning mistakes we see is a plan that was carefully put together years ago and then never revisited. Documents that don’t reflect your current life can cause real problems for your family—and sometimes produce outcomes that are the opposite of what you intended.
So when should you take a fresh look? Here are the situations that most commonly call for a review or update.
Major Life Events
Marriage or Divorce
Marriage and divorce are two of the most significant triggers for estate plan updates. If you’ve recently married, you’ll likely want to revise your documents to include your new spouse—and to think carefully about how assets should flow if one of you dies before updating beneficiary designations.
Divorce is equally important. In Colorado, a divorce automatically revokes provisions in a will that benefit a former spouse, but it does not automatically update beneficiary designations on retirement accounts or life insurance. An ex-spouse could remain the named beneficiary on a 401(k) even after a divorce is final—and that designation will control, regardless of your wishes.
Birth or Adoption of a Child
The arrival of a child—whether biological or adopted—is one of the most compelling reasons to have an estate plan in place or to update an existing one. Your will is the document where you nominate a guardian for minor children. Without a current, valid will that nominates your chosen guardian, that decision goes to a judge – without any input from you.
You may also want to revisit how assets would be distributed to children and at what ages, and whether a trust structure makes sense for managing assets on their behalf.
Death of a Named Person in Your Plan
If someone named in your estate plan has died—a beneficiary, a trustee, a personal representative, a guardian, or an agent under a power of attorney—your plan needs to be updated. A plan that names a deceased person in a key role can create confusion, delay, and potentially require court intervention.
Significant Change in Assets
Major changes in your financial picture—selling a business, inheriting money, buying or selling real estate, significant growth in investment accounts, or a substantial decline in assets—may call for a review of your plan. The structure that made sense for one level of wealth may not be optimal for another.
Relocation to or from Colorado
Estate planning laws vary by state. If you’ve moved to Colorado from another state, your existing documents may still be valid, but it’s worth having them reviewed by a Colorado attorney to confirm they work the way you intend under Colorado law. The same applies if you’re moving away.
If you own real estate in multiple states, special planning may be needed to avoid ancillary probate—a separate probate proceeding in each state where you own property.
Changes in Relationships
Estrangement or Changed Family Dynamics
Families change over time. A beneficiary you named years ago may no longer be someone you want to benefit. A relationship that was strained may have healed. A new family member may have entered the picture. Your estate plan should reflect your current relationships, not the ones you had when you last signed documents.
A Beneficiary’s Changed Circumstances
Sometimes it’s not your life that changes, but a beneficiary’s. If someone you’ve named in your plan has developed a substance abuse problem, gone through a difficult divorce, accumulated significant debt, or become eligible for government benefits (such as Medicaid or SSI), an outright inheritance could actually harm them.
In these situations, a trust with appropriate conditions or protections can accomplish your goals in a way that a straightforward bequest cannot.
Changes in the Law
Tax law and estate planning law evolve. The federal estate tax exemption has changed dramatically over the past two decades. Documents drafted around one set of rules may not perform optimally under new ones.
Credit shelter trust provisions—common in plans drafted before the estate tax exemption increased substantially—can now lock assets away from a surviving spouse in ways that weren’t intended. A review can identify whether your existing documents still make sense.
The “Five-Year Rule”
Even without a triggering event, it’s generally good practice to review your estate plan every three to five years. A review doesn’t always mean changes are needed—sometimes it simply confirms that everything is still current and working as intended. But it’s an opportunity to catch outdated provisions, update beneficiary designations, and make sure your plan still reflects your wishes.
Signs Your Plan May Be Outdated
Not sure whether your plan needs attention? Here are some common warning signs:
- Your documents are more than five years old
- You’ve had a major life event since you last updated them
- You’re not sure who is named as your agent, trustee, or personal representative
- You don’t know whether your beneficiary designations are current
- Your plan was drafted in another state
- Your financial picture looks significantly different than when you last planned
- You’ve never had a formal estate plan at all
How the Update Process Works
Updating an estate plan is generally much simpler than creating one from scratch. In many cases, it involves reviewing existing documents, identifying what needs to change, and executing updated or amended versions. For minor changes, a trust amendment or codicil to a will may be sufficient. For more significant changes, restating the trust or drafting new documents may be the cleaner approach.
At Gitkind Law Firm, plan reviews are straightforward and efficient. Andy Gitkind takes the time to understand what has changed in your life and make sure your documents reflect your current wishes—not the wishes you had years ago.
Gitkind Law Firm, P.C. | 801 Main St., Suite 230, Louisville, CO 80027 | 303-960-6628 | gitkindlaw.com