When to Update Your Estate Plan: Life Events, Legal Changes, and Review Triggers

An estate plan is not a document to sign and forget. Life changes, family circumstances evolve, tax laws shift, and financial positions fluctuate. An estate plan that was perfectly suited to a family’s needs five years ago may produce unintended and costly consequences today if it has not been reviewed and updated.

The most common estate planning failures do not stem from poorly drafted documents. They result from well-drafted documents that were never updated to reflect changed circumstances. A will that names a now-former spouse as personal representative, a trust that does not account for a child born after its creation, or a power of attorney that designates someone who has moved across the country — these are the kinds of oversights that create real problems for families.

Life Event Triggers

Certain life events should prompt an immediate review of all estate planning documents.

Marriage

Marriage fundamentally alters property rights and default inheritance rules under Minnesota law. Under the Uniform Probate Code as adopted in Minnesota (Minn. Stat. Section 524.2-301), a surviving spouse has rights to a share of the deceased spouse’s estate regardless of what a pre-marriage will provides. Specifically, a spouse who marries after the execution of a will is entitled to an intestate share of the estate unless the will was clearly made in contemplation of the marriage or a valid prenuptial agreement addresses the issue.

Upon marriage, review and update:

• Will and trust documents to include the new spouse and address marital property considerations
• Beneficiary designations on retirement accounts, life insurance, and financial accounts
• Powers of attorney and healthcare directives to determine whether the spouse should serve as agent
• Property titling to reflect the desired ownership structure for jointly acquired assets

Divorce

Divorce is equally consequential. Minnesota law (Minn. Stat. Section 524.2-804) automatically revokes any provision in a will or trust that benefits a former spouse upon divorce or annulment. However, this statutory protection does not extend to all assets. Beneficiary designations on life insurance, retirement accounts, and financial accounts governed by federal law (such as ERISA-qualified plans) may not be automatically revoked and must be manually updated.

After a divorce, the following items require attention:

• All beneficiary designations — update or remove the former spouse as beneficiary on every account and policy
• Powers of attorney and healthcare directives — revoke existing documents naming the former spouse and execute new ones
• Trust provisions — if the former spouse was a beneficiary or served as trustee, the trust should be amended (if revocable) or reviewed for decanting options (if irrevocable)
• Guardian nominations — if the divorce involves minor children, the guardianship nominations in the will may need revision

Birth or Adoption of a Child

The arrival of a new child creates an immediate need to update the estate plan. Under Minnesota’s pretermitted heir statute (Minn. Stat. Section 524.2-302), a child born or adopted after the execution of a will may be entitled to a share of the estate even if not named in the will, unless it is clear the omission was intentional.

Beyond the will, parents should:

• Name a guardian for the new child, or confirm that existing guardian designations still make sense with an additional child
• Review trust provisions to ensure the new child is included as a beneficiary
• Evaluate life insurance to determine whether coverage is adequate for the larger family
• Consider a special needs trust if the child has a disability

Death of a Beneficiary or Fiduciary

The death of someone named in the estate plan — whether a beneficiary, personal representative, trustee, agent under a power of attorney, or healthcare agent — creates a gap that must be filled. If the deceased individual was the primary fiduciary with no backup named, the plan may require court intervention to appoint a replacement, which is precisely the kind of delay and expense that proper planning is designed to avoid.

Inheritance or Financial Windfall

Receiving a significant inheritance, legal settlement, or other financial windfall may push an estate above the Minnesota estate tax exemption of $3 million. What was previously a straightforward will-based plan may now require trust-based tax planning, gifting strategies, or other approaches to minimize Minnesota estate tax liability.

Retirement

Retirement often triggers a redistribution of assets from employer-sponsored retirement plans to individual accounts, changes in income patterns, potential relocation, and a shift in planning priorities from accumulation to preservation and distribution. All estate planning documents should be reviewed at retirement to ensure they align with the new financial landscape.

Relocation To or From Minnesota

Moving into or out of Minnesota has significant estate planning implications. Minnesota imposes its own estate tax with a $3 million exemption, which is far lower than many other states (and some states have no estate tax at all). A plan designed for a state without an estate tax will likely need revision for Minnesota, and vice versa.

Additionally, Minnesota estate planning laws govern the validity and interpretation of powers of attorney, healthcare directives, and trust instruments. A document valid in another state should be reviewed by a Minnesota attorney to confirm it meets Minnesota requirements and will be accepted by Minnesota institutions and courts.

Legal Change Triggers

Estate planning law is not static. Changes at both the state and federal level can render existing plans ineffective or create new planning opportunities.

Minnesota Law Changes

The Minnesota legislature periodically updates estate tax exemptions, trust law provisions, and probate procedures. Notable recent developments include the enactment of the Minnesota Trust Code (Minn. Stat. Chapter 501C), which modernized trust administration rules, introduced trust decanting provisions, and extended the permissible duration of trusts to 500 years. Changes to the state estate tax exemption amount or rate structure can also alter the effectiveness of existing plans.

Federal Tax Law Changes

The federal lifetime gift and estate tax exemption has fluctuated substantially over the past two decades. The current historically high exemption is scheduled to decrease significantly in the coming years unless Congress acts. Families who have incorporated the high federal exemption into their planning — through gifting programs, spousal lifetime access trusts, or other strategies — should review their plans before any scheduled reduction takes effect.

Changes to income tax rates, capital gains tax rules, and the taxation of trusts and estates at the federal level can also influence the choice between different planning structures.

Financial Triggers

Significant changes in financial position warrant an estate plan review, even when no specific life event has occurred.

Substantial Asset Growth

If the value of an estate has grown significantly — through investment appreciation, real estate value increases, business growth, or asset accumulation — the plan should be reviewed for potential estate tax exposure. An estate that was well below the Minnesota $3 million threshold five years ago may now be above it.

New Business Ownership

Starting, acquiring, or significantly expanding a business introduces succession planning needs, potential liability exposure, and new asset classes that the existing estate plan may not address. Business succession planning should be integrated with the personal estate plan to ensure a coordinated approach.

Real Estate Transactions

The purchase or sale of significant real property affects estate planning in several ways. New property may need to be titled in the name of a trust, a transfer on death deed may be appropriate, or ownership structures may need to be adjusted for liability protection or tax planning purposes.

Changes in Debt or Liability Exposure

Taking on significant debt (such as a new mortgage) or experiencing increased professional liability exposure may warrant changes to asset protection strategies, insurance coverage, and fiduciary appointments.

What to Check in Each Document

When reviewing an estate plan, each document requires specific attention.

Will

• Are the named personal representative and alternates still appropriate and willing to serve?
• Are all intended beneficiaries included, including any children born or adopted since the will was signed?
• Do the distribution provisions still reflect the testator’s wishes?
• Are guardian nominations for minor children still appropriate?

Revocable Living Trust

• Is the trust properly funded? Are all intended assets titled in the trust’s name?
• Are successor trustee designations still appropriate?
• Do the distribution provisions account for all current beneficiaries?
• Are the incapacity provisions and the definition of incapacity still acceptable?
• Do tax planning provisions (credit shelter trusts, marital deduction trusts) still function as intended under current law?

Power of Attorney

• Is the named agent still the right person for the role?
• Is the alternate agent still appropriate?
• Are the powers granted sufficiently broad for current circumstances?
• Do financial institutions have a copy on file?

Healthcare Directive

• Is the named healthcare agent still the right person?
• Do the treatment preferences still reflect current wishes?
• Has the directive been updated to address any new medical conditions or treatment preferences?

Beneficiary Designations

• Do all retirement account, life insurance, and financial account beneficiary designations match the overall estate plan?
• Are contingent beneficiaries named on every account?
• Have any designated beneficiaries died, become estranged, or become inappropriate?

Recommended Review Schedule

At a minimum, estate planning documents should be reviewed comprehensively every three to five years, even in the absence of any specific triggering event. Laws change, relationships evolve, financial positions shift, and assumptions made at the time of drafting may no longer hold.

An annual quick check of beneficiary designations and fiduciary appointments — a process that takes less than an hour — can catch the most common issues before they become problems.

The cost of reviewing and updating an existing estate plan is a fraction of the cost of the problems that an outdated plan can create. An estate planning attorney can conduct a thorough review, identify gaps or outdated provisions, and recommend targeted updates that keep the plan aligned with current goals, family circumstances, and the law.