Originally published June 2016. Last updated March 2026.
An estate plan isn’t a set-it-and-forget-it document. Life changes, and your plan needs to keep up. Here are the situations that should trigger a review.
[toc]
1. Changes in Tax Law
Estate tax law has shifted dramatically over the past decade. The federal estate tax exemption in 2025 is $13.99 million per person ($27.98 million for married couples). But that number is scheduled to drop to roughly $7 million per person in 2026 when the Tax Cuts and Jobs Act provisions sunset.
If your estate is anywhere near the $7 million threshold, this matters. Strategies like irrevocable trusts, gifting, and family limited partnerships should be reviewed before the exemption drops.
In Kentucky, there’s no state estate tax, but there is an inheritance tax. Class A beneficiaries (spouse, children, grandchildren, parents, siblings) are exempt. Other beneficiaries face rates of 4-16% depending on the relationship and amount.
2. Marriage or Divorce
Getting married? Your new spouse likely needs to be added as a beneficiary on retirement accounts, life insurance, and your will. Getting divorced? You need to remove your ex from those same documents. In many states, divorce doesn’t automatically revoke beneficiary designations on financial accounts.
3. Birth or Adoption of a Child
New children need guardians named in your will. You may also want to set up a trust to manage assets on their behalf until they’re old enough to handle money responsibly.
4. Death of a Beneficiary or Executor
If someone named in your plan dies before you, that section of your plan may not work the way you intended. Alternate beneficiaries should always be named, and executors should be people you trust who are willing and able to serve.
5. Significant Change in Assets
Bought a business? Inherited money? Sold a property? Major changes in your net worth can change which estate planning tools make sense. Someone with $500,000 in assets needs a different plan than someone with $5 million.
6. You’ve Moved to a Different State
Estate planning laws vary by state. A trust drafted in one state may not work optimally in another. Community property states, state estate tax states, and states with different probate rules can all affect your plan.
7. It’s Been More Than 3-5 Years
Even if nothing dramatic has changed, reviewing your plan every three to five years catches things that slip through the cracks: outdated addresses, closed bank accounts, life insurance policies that no longer fit, or beneficiary designations you forgot to update.
FAQ
Do I need a lawyer to update my estate plan?
For most changes to wills and trusts, yes. Beneficiary designations on financial accounts can often be updated directly with the institution. A financial planner can coordinate with your attorney to make sure everything stays aligned.
What’s the most commonly overlooked item?
Beneficiary designations on retirement accounts and life insurance. These override your will. If your ex-spouse is still listed as the beneficiary on your 401(k), they’ll get the money regardless of what your will says.
Is the estate tax exemption really dropping in 2026?
As currently written, yes. The $13.99 million exemption was part of the Tax Cuts and Jobs Act of 2017, which sunsets after 2025. Congress could extend it, but there’s no guarantee. Planning as if it will drop is the prudent approach.
Schedule a free 20-minute consultation to review whether your estate plan needs updating.
R.L. Brown Wealth Management
106 W Vine St, Suite 300, Lexington, KY 40507
859.317.5889
