Practicing Good Estate Plan Hygiene
It’s easy to think of estate planning as a one-time task.
You draft a will, establish trusts, sign your powers of attorney, and check the box. After all, the entire purpose of an estate plan is to ensure things are handled properly after you’re gone.
But while an estate plan may be designed to endure, it should never become a “set it and forget it” part of your financial life.
Life changes constantly. Families evolve. Assets grow. Laws shift. And your estate plan should evolve alongside them.
That’s why practicing good estate plan hygiene is so important. Even if your family hasn’t experienced a major life event recently, reviewing your estate plan annually can help ensure everything remains accurate, coordinated, and aligned with your wishes.
Here are five important areas to review during a regular estate plan checkup.
1. Review Your Beneficiary Designations
Many people assume their will or trust controls the distribution of all their assets.
In reality, some assets—particularly retirement accounts and life insurance policies—typically pass directly to the named beneficiary, regardless of what your estate documents say.
That can create problems if beneficiary designations are outdated.
For example:
Is an ex-spouse still listed on an old retirement account?
Has a primary beneficiary passed away?
Does a now-adult child still have a custodian assigned unnecessarily?
These situations are more common than many people realize.
The good news is that beneficiary updates are usually straightforward and can often be completed online through your financial institution.
Reviewing beneficiary designations regularly is one of the simplest—and most overlooked—ways to keep an estate plan functioning properly.
2. Revisit Fiduciary Appointments
Your estate plan depends heavily on the people you’ve chosen to carry out your wishes.
This includes:
executors
trustees
financial powers of attorney
health care proxies
But the right choice ten years ago may not be the right choice today.
A fiduciary may have:
developed health concerns
moved away
become overwhelmed with other responsibilities
passed away
simply changed their willingness to serve
This is especially common for parents who initially named siblings or friends when children were young, only to later realize an adult child may now be a more appropriate choice.
It’s wise to periodically check in with anyone named in your estate plan—and to review backup fiduciaries as well.
3. Make Sure Your Trust Is Properly Funded
One of the primary reasons people establish trusts is to help avoid probate and simplify the transfer of assets.
But a trust only works properly if assets are actually titled in the name of the trust.
This is one of the most common estate planning gaps.
Over time, people purchase:
new homes
investment accounts
business interests
valuable personal property
Yet many forget to transfer those assets into the trust structure.
When assets are left outside the trust unintentionally, they may still end up going through probate—undermining one of the trust’s main benefits.
Keeping your trust properly funded is an essential part of ongoing estate plan maintenance.
4. Align Your Plan with Major Life Changes
Few areas of financial planning are more connected to life changes than estate planning.
Major events such as:
marriage
divorce
remarriage
births or adoptions
deaths in the family
relocation to another state
All of these should trigger a review of your estate plan.
Changes in financial circumstances matter as well.
A business sale, inheritance, significant increase in net worth, or new real estate purchase may warrant adjustments to your planning strategies.
Additionally, state laws differ significantly, particularly around probate rules, community property laws, and spousal rights.
And federal tax laws continue to evolve over time.
An estate plan that worked perfectly several years ago may no longer reflect your current life or goals today.
5. Keep Documents Secure—but Accessible
Even the best estate plan is ineffective if no one can locate the documents when they’re needed.
Original signed copies of:
wills
trust agreements
powers of attorney
health care directives
All of these should be stored securely but remain accessible to trusted individuals.
A fireproof home safe or secure storage through your attorney’s office is often preferable to a bank safe deposit box, which can sometimes create access complications after death. However, make sure those trusted family and friends know where and how to access your documents.
Digital copies are also helpful for organization and backup purposes. However, many institutions and courts still require original documents with “wet” signatures.
It’s also important that trusted family members know:
where documents are located
who your attorney is
which institutions hold your accounts
Without that information, even well-organized plans can become difficult to administer.
Estate Planning Is an Ongoing Process
In many cases, annual estate plan reviews are relatively simple.
But during periods of significant personal, financial, or legal change, more substantial updates may be necessary.
Estate planning works best when treated as an ongoing process rather than a one-time event.
Regular reviews can help ensure your wishes remain current, your loved ones stay protected, and your plan continues to function the way you intended.
Questions?
If you’d like to review your current estate plan—or discuss whether your documents still reflect your wishes and family circumstances—we’d be happy to help.
Questions? We offer a complimentary 15-minute call to discuss your concerns and explore how we can assist you.
A Weekly Perspective on Planning and Markets
Each week, we share The Week in Review — a short collection of articles on
financial planning and wealth management, along with a brief overview for context.
One email per week. No promotions, no sales – just clarity.
Stordahl Capital Management, Inc is a Registered Investment Adviser. This commentary is solely for informational purposes and reflects the personal opinions, viewpoints, and analyses of Stordahl Capital Management, Inc. and should not be regarded as a description of advisory services or performance returns of any SCM Clients. The views reflected in the commentary are subject to change at any time without notice. Nothing in this piece constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Advisory services are only offered to clients or prospective clients where Stordahl Capital Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Stordahl Capital Management unless a client service agreement is in place. Stordahl Capital Management, Inc provides links for your convenience to websites produced by other providers or industry-related material. Accessing websites through links directs you away from our website. Stordahl Capital Management is not responsible for errors or omissions in the material on third-party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third-party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from the use of those websites. Please note that trading instructions through email, fax, or voicemail will not be taken. Your identity and timely retrieval of instructions cannot be guaranteed. Stordahl Capital Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.