How often should you review your estate plan?

As a general guide, it’s a good idea to review your estate plan every three to five years.

You should also consider reviewing your estate plan sooner if there has been a significant change in your life, such as getting married, separating, having children, buying or selling major assets, or losing a loved one. Changes in your financial position or family circumstances can affect how your estate is managed and distributed.

Even if your circumstances haven’t changed significantly, a regular review helps ensure your documents remain current and legally effective.

Estate Plan Review Checklist
When reviewing your estate plan, it can be helpful to consider the following key areas:

1. Your Will
Your Will should reflect your current wishes. This includes confirming that your chosen executors are still the right people to manage your estate and are still able to act in this role, and that your nominated beneficiaries remain appropriate.

If your financial situation has changed or your family has grown, you might want to review how your assets are distributed. You may also wish to consider the benefits of a testamentary trust, if you haven’t already. 

2. Enduring Power of Attorney (Financial and Personal) and Medical Treatment Decision Maker 
Estate planning also involves preparing for the possibility that you may lose the ability to make decisions for yourself.

It’s important to review whether the person or people you have appointed as your Attorney for financial and personal matters are still suitable and willing to act. You should also confirm that your Medical Treatment Decision Maker document continues to reflect your wishes.

3. Superannuation
Superannuation is often misunderstood, with many people thinking it is automatically distributed according to their Will. This is not the case.

Many super funds allow you to make a binding death benefit nomination directing who should receive your super. These nominations can expire and must name a valid beneficiary to be effective. It’s important to check that your superannuation death benefit nomination is still valid and up to date.

4. Asset Ownership
The way your assets are owned can affect how they pass after your death. For example, assets owned jointly will usually pass automatically to the surviving owner on the death of the first person, rather than being distributed under your Will.

Reviewing how your assets are owned helps make sure your estate plan reflects your wishes and that your assets go to the people you intend.

5. Guardians for Minor Children
If you have minor children, your Will may nominate a guardian to care for them if both parents pass away.

It’s important to review whether your nominated guardian is still appropriate and willing to take on this responsibility.

6. Why It’s Important to Review Your Estate Plan 
Failing to review your estate plan can lead to unintended consequences. Outdated documents may result in people being appointed to act on your behalf who you would not choose today, and your assets being distributed in a way that no longer reflects your estate planning goals and objectives. 

This may create unnecessary stress and complications for your loved ones. A regular review of your estate planning helps ensure your estate plan continues to reflect your wishes and provides clarity and protection for your family.

Getting Help to Update Your Estate Plan
Updating your estate planning documents should be done carefully to make sure they remain valid under Victorian law. 

If it’s been several years since your estate plan was prepared, or if your circumstances have changed, talking with an experienced estate planning lawyer can help ensure your documents remain effective and aligned with your estate planning goals and objectives.