Protecting Your Legacy in 2025
Life has a way of changing when you least expect it.
Imagine this: Five years ago, you successfully implemented an estate plan, carefully looking at every detail. But since then, you’ve experienced significant life changes: a divorce and remarriage, the sale of your house, a new career that provides substantial income, and a reconciliation with an estranged daughter.
While these scenarios might not fit your reality exactly, just consider for a moment how major changes like these could affect your estate. There is just so much that can happen that makes periodic estate plan review essential, including:
- Tax law changes that occur annually at federal and state levels
- Market fluctuations affecting asset valuations and portfolio composition
- Family dynamics that evolve with marriages, births, and deaths
After all, if the only constant is change, it isn’t unreasonable to speculate that your wishes may have changed, the advantages you sought may have vanished, or even that new opportunities now exist that could offer better value for your estate than in the past.
Simply put, there are too many variables at play NOT to engage in periodic estate plan reviews. This article will go over key aspects of estate planning, in addition to the major life events that should trigger a review, and possibly an update.
What Is an Estate Plan Review? Why It’s Essential in 2025
As noted, estate planning isn’t a “set it and forget it” process. A periodic review involves systematically examining your existing estate plan to ensure it remains aligned with your current financial situation, family circumstances, and long-term goals. Key benefits of regular estate plan reviews include:
- Legal compliance with current federal and state regulations
- Tax optimization through updated strategies and opportunities
- Asset protection aligned with current financial circumstances
- Peace of mind knowing your legacy remains protected
When Should You Review Your Estate Plan in 2025? Key Timing Rules
Large Estate Requirements: Annual
Those with substantial estates (over the applicable exclusion amount) should review their plan annually. Tax regulations and estate planning laws change frequently, so staying current is essential for optimal results.
Smaller Estate Guidelines: Every Five Years
Those with smaller estates (under the applicable exclusion amount) need only review every five years, or following major life events. However, changes in your financial picture, family relationships, or personal goals can make earlier reviews beneficial.
Life Events That Require an Estate Plan Update in 2025
Family Structure Changes
Family circumstances represent the most common triggers for estate plan modifications. Critical family-related triggers include:
- Marriage or remarriage requiring spousal provision updates
- Divorce or separation necessitating beneficiary changes
- Birth or adoption of children or grandchildren
- Death of beneficiaries or key family members
For example, many states have laws revoking all or part of your will if you divorce or remarry, making updates essential.
Financial and Economic Changes
Significant changes in your financial position dramatically impact your estate planning needs. Pay special attention to estate value changes exceeding 20% over two years, major income modifications, retirement transitions, and substantial debt changes.
Career and Business Transitions
Career transitions, job changes, or shifts in employment benefits may require revisions to your estate plan. Here are some common business-related review triggers:
- Business formation, purchase, or sale of closely held interests
- Reorganization or liquidation of business entities
- Pension plan implementation or modifications
- Employee benefit changes impacting overall compensation
Major Transactions and Asset Changes
Substantial financial transactions can significantly impact your estate plan and should trigger immediate review. The following are transaction-based triggers:
- Receiving inheritance or substantial gifts affecting estate size
- Making substantial loans or borrowing significant amounts
- Purchasing or selling material assets like real estate or investments
- Changing residences especially across state lines
Insurance Coverage Modifications
Changes in insurance coverage may create new estate planning needs or opportunities. Life insurance plays a crucial role in estate planning, often providing liquidity and support to beneficiaries.
Estate Plan Review Checklist for 2025: Step-by-Step Guide
- Reviewing Estate Documents for Legal Compliance
Begin by gathering all estate planning documents and assessing their current validity. Essential documents include wills, trust agreements, powers of attorney, healthcare directives, and beneficiary designations on all accounts and policies.
- Assessing Your Assets and Liabilities Assessment
Conduct a comprehensive review of your current financial position. The primary financial assessment components include:
- Real estate holdings and current market valuations
- Investment portfolios including retirement accounts
- Business interests and professional valuations
- Insurance coverage adequacy and beneficiary designations
- Optimizing Your Estate Plan for 2025-2026 Taxes
Evaluate current tax strategies and identify opportunities for improvement based on recent law changes. Focus on annual gift tax exclusions, generation-skipping strategies, state tax implications, and charitable giving opportunities.
- Creating Your Estate Plan Review Schedule
It is critical to establish a systematic approach to estate plan maintenance. Annual maintenance tasks include:
- Review beneficiary designations on all accounts and policies
- Assess insurance coverage adequacy and premium costs
- Document significant life changes affecting your plan
- Monitor estate value fluctuations and tax implications
For comprehensive reviews every 3-5 years, include complete document review with legal counsel, tax strategy evaluation, and family circumstance evaluation.
Immediate review triggers include marriage, divorce, birth or adoption of children, death of beneficiaries, significant financial changes exceeding 20% of estate value, and major legislative changes affecting estate planning strategies.
Why You Need Estate Planning Professionals in 2025
Estate planning involves complex legal, tax, and financial considerations that require expert guidance. Your estate planning team should include:
- Estate planning attorney ensuring legal compliance and document updates
- Tax professional optimizing strategies and identifying planning opportunities
- Financial advisor aligning investment strategies with estate planning goals
- Insurance specialist reviewing coverage adequacy and beneficiary designations
As one of the largest independent investment advisory networks in the Southeast, NBC Securities works closely with trusted estate planning professionals throughout the region to provide comprehensive wealth management and legacy planning services.
What Happens If You Don’t Review Your Estate Plan?
Failing to conduct regular estate plan reviews can result in significant consequences. The potential issues of outdated plans include:
- Unintended beneficiaries receiving assets due to outdated designations
- Tax inefficiencies resulting in unnecessary estate and income taxes
- Legal challenges from conflicting or unclear documents
- Inadequate family provision for changed circumstances
Protect Your Legacy: Schedule an Estate Plan Review Today
Your estate plan represents more than financial documents—it’s your legacy blueprint. Regular reviews ensure this blueprint remains accurate, effective, and aligned with your evolving life circumstances. By establishing a systematic review process and working with qualified professionals, you protect not only your wealth but also your family’s future security.
Don’t let an outdated plan compromise the legacy you’ve worked so hard to build. Schedule your estate plan review today to ensure your wishes are properly documented and your family’s financial future remains secure.
Frequently Asked Questions About Estate Plan Reviews
Q: What documents should I bring to an estate plan review?
A: Gather all existing estate planning documents, recent financial statements, insurance policies, beneficiary designation forms, and legal documents related to business interests or major assets.
Q: What happens if I don't update my estate plan after major life changes?
A: Outdated plans can result in unintended beneficiaries, tax inefficiencies, legal challenges, and failure to provide for current family circumstances.
Q: Should I review my estate plan if I've moved to a different state?
A: Absolutely. State laws governing estates, taxes, and probate vary significantly. Moving requires updates to ensure your plan remains valid and tax-efficient.
Q: What role does NBC Securities play in estate plan reviews?
A: As a trusted estate planning firm in the Southeast, NBC Securities coordinates with estate planning professionals to provide comprehensive wealth management services aligned with your estate planning goals.
NBC Securities is a full-service broker-dealer and registered investment advisor serving individuals, companies, and advisors throughout the Southeast. Contact us today to schedule your estate plan review consultation.
This article is for informational purposes only and should not be considered as specific financial advice. Consult with qualified financial professionals to develop strategies appropriate for your individual circumstances.
