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When to Review and Update Your Estate Plan

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Estate planning is not a one-time task but an ongoing process that requires regular attention. A well-crafted estate plan protects and transfers wealth according to your wishes, minimizing tax impact and preserving family harmony. 

However, life changes and evolving tax laws can render a plan ineffective. According to a 2024 survey conducted by PR Newswire, only 26% of Americans have an estate plan. Those who have one should periodically revisit it to confirm that it accurately reflects their wishes and will perform as intended when needed.

Events like getting married, having a child, or relocating to a new state like Ohio can make your current plan outdated. Without updates, you risk leaving loved ones with unnecessary stress, unexpected legal challenges, or assets stuck in probate. 

At Jarvis Law Office, we don’t just create trusts—we make sure your assets are properly moved into them, so nothing gets overlooked. We also provide easy-to-use tools and clear guidance, so you stay in control of your plan. 

Key Takeaways

  • Review your estate plan every 3–5 years or after major life events.
  • Keeping your plan updated helps assets go to the right people, and reflects changes in laws or finances.
  • Ohio’s unique probate and estate laws may require trusts or other updates to protect your family and assets.
  • Working with a trusted professional allows for your estate plan to stay effective and legally sound.

What is an Estate Plan and Why Does It Matter?

An estate plan is a set of legal documents that explain what happens to your money, property, and personal belongings after you pass away. It also lays out who will make important decisions about your finances or healthcare if you can’t. Simply put, it’s your plan to make sure your wishes are followed.

Most estate plans include three key pieces:

  1. A Will: This document explains who gets what after you’re gone.
  2. A Trust: This helps manage your assets while you’re alive and after you’ve passed. Trusts can also avoid probate, which is the legal process of handling someone’s estate.
  3. Beneficiary Designations: These determine who inherits things like life insurance or retirement accounts.

If you live in Ohio, it’s especially important to know how state laws might impact your estate plan. For example, Ohio’s probate process is required for many estates unless you have a plan in place to avoid it, like setting up a trust.

Without an estate plan, your assets might not go where you want them to. Your loved ones could face long legal battles, added expenses, and a lot of unnecessary stress. Taking the time to create or update your plan helps protect the people you care about most.

When Should You Review and Update Your Estate Plan?

You should review your estate plan every 3–5 years or after major life events to make sure it reflects your current situation and wishes. This timeframe is ideal for catching any outdated information, like changes in assets or beneficiary designations. 

According to Planned Giving, life events, such as having children, prompt 34% of people to make updates to their estate. Ignoring these updates could leave your loved ones dealing with unnecessary complications.

Here are the key moments when you should review your estate plan:

Marriage or Divorce

Getting married or divorced means your estate plan needs changes. You may want to include your new spouse or remove an ex from your will or beneficiary designations.

Birth or Adoption of a Child

Adding a child to your family means updating your plan. This includes naming guardians to care for them and setting up trusts to manage their inheritance.

Death of Someone Named in Your Plan

If a beneficiary, executor, or guardian in your estate plan has passed away, you’ll need to replace them to avoid confusion or legal issues.

Major Changes in Assets

Big financial changes—like buying a house, starting a business, or inheriting property—mean you should secure these new assets and include them in your estate plan.

Moving to a New State

Relocating or moving to another state is a good reason to review your plan. Each state has unique laws that need to be considered for estate planning. 

Changes in Tax Laws

Tax laws can impact your estate, especially federal estate taxes. While Ohio doesn’t have an inheritance tax, your plan should account for any tax implications that could affect your heirs.

Retirement or Personal Milestones

Entering retirement or reaching significant life milestones can shift your priorities. Review your estate plan to make sure it aligns with your current goals and lifestyle.

How Often Should You Review Your Estate Plan?

An elderly couple smiles warmly to each other, while reviewing their estate plan with a professional.

Professionals recommend reviewing your estate plan every 3–5 years to account for financial changes or evolving state and federal laws. Even if no major life events occur, regularly reviewing your estate plan allows it to stay relevant and legally sound. 

Here’s how to approach your review:

  1. Set a Regular Schedule
    Make it a habit to revisit your estate plan every 3–5 years. This makes sure everything is still accurate and reflects your current wishes, even if life feels stable.
  2. Check for Legal Changes
    Laws can change without warning. For example, if Ohio updates its probate or tax laws, your estate plan may need adjustments to avoid unnecessary legal hurdles or taxes for your heirs.
  3. Review Beneficiaries and Executors
    People’s lives change. Relationships shift, people pass away, or someone you’ve named might no longer be the best choice. A quick review allows for the right people to be listed in your plan.
  4. Evaluate Your Assets
    Over time, you may acquire new assets, like a home or investments, or sell off significant property. These changes must be reflected in your estate plan to keep things accurate.

4 Steps to Simplify Your Review

Here are 4 steps to simplify your estate planning review if you’re feeling stuck:

  • Step 1: Gather all your estate planning documents, like your will, trusts, and financial records.
  • Step 2: Review who’s named as beneficiaries, guardians, and executors.
  • Step 3: Confirm that your assets, such as property and investments, are included.
  • Step 4: Consult with a professional, like a local estate planning attorney, especially if you live in Ohio where laws may affect how assets are handled.

How Do Ohio’s Estate Planning Laws Affect Your Plan?

In Ohio, estate planning, like moving assets into trusts, must work in tandem with local laws, like the Ohio Revised Code, Chapter 2109

88% of trusts are not properly funded, according to the American Academy of Estate Planning Attorneys. Properly transferring assets into your trust is a step many overlook but one that can save significant time and money for your heirs. Here’s what to keep in mind:

Ohio’s Probate Process

In Ohio, estates valued over $35,000 (or $100,000 if everything goes to a surviving spouse) generally go through probate. This court-supervised process can be time-consuming and expensive for your loved ones. 

To avoid probate, you can set up a living trust, which allows assets like property or savings to transfer directly to your beneficiaries without court involvement.

No Inheritance Tax in Ohio

Ohio doesn’t have an inheritance tax, meaning the state won’t tax your beneficiaries on what they inherit. However, federal estate taxes still apply to estates exceeding $12.92 million as of 2023. 

If your assets include farmland in Amish Country or investments from years of hard work in Cincinnati, planning ahead can reduce or eliminate the tax burden on your heirs.

Spousal Rights Under Ohio Law

Ohio law protects spouses by guaranteeing them a portion of the estate, even if they’re not included in the will. This is called an elective share, and secures that the surviving spouses are not left without financial support. If you’re married, it’s important to account for these rights in your estate plan to avoid disputes or surprises.

State-Specific Rules for Wills

For a will to be valid in Ohio, it must meet specific requirements. It needs to be signed by the person creating it (the testator) and witnessed by at least two people. If your will doesn’t meet these requirements, it could be challenged in court or even deemed invalid, leaving your estate to be distributed under Ohio’s default intestacy laws.

Guardianship for Minors

If you have children under 18, Ohio courts will appoint a guardian to care for them if you don’t name one in your estate plan. By naming a guardian in your will, you can make sure that your children are cared for by someone you trust, rather than leaving the decision to the courts.

5 Common Mistakes People Make When Updating Their Estate Plan and How to Avoid Them 

Here are the most common estate planning mistakes people make during an update and how to avoid them:

  1. Not Updating Beneficiaries
    Failing to update beneficiaries on accounts like life insurance or retirement plans can lead to outdated designations overriding your will. For example, an ex-spouse might still inherit your funds if changes aren’t made.
  2. Forgetting Digital Assets
    Digital accounts like bank logins, cryptocurrency, or social media profiles are often left out. Ohio laws allow you to designate someone to manage these, but only if they’re explicitly addressed in your plan.
  3. Ignoring Ohio Probate Laws
    Assets over $35,000 often go through probate in Ohio. Without a trust, this process can be costly and time-consuming for your family.
  4. Overlooking Healthcare Directives
    Important documents like a living will or healthcare power of attorney are often skipped. In Ohio, these documents make sure trusted individuals can make medical decisions for you.
  5. Skipping Professional Help
    DIY plans can backfire. Ohio’s unique rules for wills, trusts, and probate require a professional’s guidance to avoid costly mistakes.

How to Avoid These Estate Planning Mistakes

In order to avoid the most common estate planning mistakes, use the following process: 

  • Regularly review and update your beneficiary designations after major life events like marriage, divorce, or the birth of a child.
  • Include instructions for managing digital assets in your estate plan.
  • Consider setting up a living trust to minimize Ohio probate complications.
  • Add healthcare directives to make your medical preferences clear.
  • Work with a professional familiar with Ohio estate laws to avoid costly errors.

How to Update Your Estate Plan

An infographic titled "Simplifying Estate Plan Updates" shows a funnel with 5 steps.

You can update your estate plan by following these steps:

  1. Gather Your Documents
    Collect your will, trusts, power of attorney, healthcare directives, and beneficiary designations. Ohio residents should make sure these meet state requirements.
  2. Review Your Plan
    Check that beneficiaries, guardians, and executors are correct. Add new assets, like property or investments, that aren’t included.
  3. Identify Changes
    Consider life or legal changes since your last update, like moving or changes in tax laws. Adjust your plan as needed.
  4. Consult a Professional
    Work with an Ohio estate planning attorney to make sure your plan is legally valid and avoids probate complications.
  5. Communicate Updates
    Share your updated plan with executors, beneficiaries, and guardians, so they know their roles.

Ready to Update Your Estate Plan?

Keeping your estate plan up to date is one of the best ways to protect your family and your assets. At Jarvis Law Office, we go beyond the basics by helping you avoid probate, guiding you on how to use the tools in your plan, and making sure that your financial advisor stays in control of your investments.

Don’t wait until it’s too late—get the guidance you need to simplify the process and secure your future. Visit our contact page to connect with our team and take the next step toward peace of mind.

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David Dinning

October 7, 2024

Very helpful. I would recommend them – I have used them and am very satisfied.

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August 22, 2024

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July 19, 2024

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July 19, 2024

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July 19, 2024

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