We All Need a Yearly Checkup: Your Estate Plan Does Too

Most of us understand the importance of getting an annual physical. It’s an opportunity to detect and treat potential health problems before they become serious. The same principle applies to your estate plan. Just as your doctor monitors your well-being to ensure that you remain healthy, your estate plan also needs regular checkups to stay in top shape. Reviewing it each year helps identify issues that may arise from life changes, new financial circumstances, or evolving laws—before they lead to unintended or costly consequences. Like an undetected medical condition, an outdated or incomplete estate plan can create serious complications for you and your loved ones down the road.

If you don’t yet have an estate plan, consider this your friendly reminder that an ounce of prevention truly is worth a pound of cure. Life is unpredictable. None of us can know what tomorrow may bring, which is why it’s essential to have a plan in place to protect yourself and your loved ones in the event of illness, incapacity, or death. While it can be uncomfortable to think about such possibilities, the temporary unease of planning ahead is far easier to bear than the turmoil your family might face if you leave them unprepared.

Imagine, for instance, becoming seriously ill or unconscious and unable to make medical decisions for yourself. Without a properly executed medical power of attorney naming someone you trust to act on your behalf, a court may need to step in to appoint a decision-maker. Likewise, if you have minor children and have not designated a guardian, the court will decide who cares for them—without your input. Without a will or trust specifying how your assets should be distributed, state law will determine who inherits your property. The outcome may not align with your wishes, and your loved ones could be left to navigate the uncertainty and expense of a public probate proceeding. Moreover, a lack of estate planning could result in significant tax burdens, diverting a portion of your hard-earned wealth from your family to the government instead.

Even if you already have an estate plan in place, it is not a “set it and forget it” document. Life—and the law—are constantly changing. A plan that suited you five years ago may no longer reflect your circumstances or your intentions today. Regular reviews are crucial to ensure that your plan remains aligned with your current goals and complies with the latest legal requirements.

Consider how life’s milestones can quietly reshape your estate needs. Children grow up, loved ones pass away, relationships evolve, and careers shift. You may have purchased or sold property, changed jobs, received an inheritance, or experienced a substantial change in your financial situation. Each of these events has the potential to affect your estate plan. Even something as simple as moving to a different state can make your existing documents invalid or inconsistent with your new state’s laws. Similarly, those you appointed as executor, trustee, guardian, or agent under your power of attorney may no longer be able—or appropriate—to serve in those roles. Periodic reviews ensure that your estate plan reflects your current wishes and that the right people are in place to carry them out.

In addition to personal changes, legislative developments continue to reshape estate planning. Over the past few years, significant shifts in federal tax and retirement law have influenced how individuals plan for the future. The SECURE Act 2.0, enacted in late 2022 and now fully implemented by 2026, extended the required minimum distribution (RMD) age to 73, and it continues to affect how retirement accounts are inherited. Many non-spousal beneficiaries are now required to withdraw the full balance of inherited IRAs or 401(k)s within ten years of the account holder’s death, accelerating income taxes and potentially pushing recipients into higher tax brackets. For those with large retirement savings, these changes may necessitate new strategies—such as adjusting beneficiary designations or incorporating specific trust provisions—to preserve wealth and minimize taxes.

Meanwhile, the One Big Beautiful Bill Act extended and increased the lifetime estate and gift tax exemptions moving forward. The current exemption of approximately $15 million per individual (or $30 million for married couples) will be adjusted annually for inflation moving forward. That means previous estate planning strategies selected when the exemption was expected to decrease significantly may not be appropriate anymore. For high-net-worth individuals or those whose estates are approaching that threshold, there are opportunities to take advantage of the higher exemption, potentially through lifetime gifting or other transfer strategies.

On the state level, laws governing wills, trusts, healthcare directives, and powers of attorney continue to evolve. Many states have updated their statutes to modernize digital asset provisions, electronic signatures, and remote notarization, all of which may affect the validity or enforceability of older documents. Without periodic legal review, your plan may inadvertently fall behind the times, creating avoidable complications for your loved ones.

The good news is that reviewing and updating your estate plan doesn’t have to be painful. Think of it as a routine wellness visit for your financial life—one that ensures everything is working as it should. Taking the time now to assess your documents, confirm your wishes, and make necessary updates will save your family time, stress, and expense in the future.

At Hedemark Law, we specialize in helping clients maintain healthy, up-to-date estate plans that adapt as their lives evolve. Whether you need to create a new plan, review your existing documents, or discuss special circumstances unique to your family, our experienced attorneys are here to help.

Your estate plan deserves the same care and attention you give your health. Don’t wait until an emergency arises to find out that something is out of date. Call our office today to schedule your annual estate plan review and make sure your plan has a clean bill of health for the year ahead.

Disclaimer: The Information contained in this blog does not provide or constitute legal, financial, or other professional advice. The content is for general information, education, and not a substitute for professional advice. Accordingly, we encourage readers to consult with our office or other appropriate legal, financial, and other professionals to determine the best course of action for their individual and specific situation. Readers rely on the information conveyed herein at their own risk.