Why Estate Planning Is Essential—And When to Update Your Documents

Why Estate Planning Matters

1. Avoids Costly Probate

A properly structured estate plan—using tools such as trusts, wills, and beneficiary designations—can significantly reduce or entirely bypass probate. Probate often delays asset distribution for months or even years and can consume 5% or more of an estate’s value in legal, executor, and administrative costs.

2. Protects Loved Ones

Estate planning lets you designate guardians for minor children and establish trusts for family members with special needs, ensuring they receive proper care and support. Clear directives reduce emotional and legal conflicts among beneficiaries.

3. Reduces Taxes and Expenses

Strategic use of trusts, lifetime gifting, and proper beneficiary designations can minimize federal and state taxes, helping preserve more wealth for your heirs.

4. Ensures Your Wishes Are Followed

Estate planning empowers you to specify medical preferences, appoint a trusted agent via a durable power of attorney, and create healthcare directives for times when you're unable to decide .

What an Estate Plan Typically Includes

According to the American Bar Association and financial advisors, a sound estate plan often comprises:

• Will – Directs asset distribution and appoints executors

• Trusts (revocable or irrevocable) – Help avoid probate, manage assets, and reduce taxes

• Durable Power of Attorney – For financial decisions

• Healthcare Power of Attorney and Advance Directive – Govern medical decisions

• Beneficiary Designations – Ensure non-probate asset transfer like life insurance and retirement accounts.

How Often Should You Update Your Documents?

Estate planning isn’t a one-time task. Experts recommend reviewing and updating your documents every 3 to 5 years, and immediately after any major life event.

Update After:

• Marriage, divorce, or separation

• Birth or adoption of a child

• Death of a spouse or beneficiary

• Significant changes in finances (inheritance, real estate, business)

• Moving to a new state (laws vary significantly)

• Changes in personal relationships

• Serious illness, disability, or incapacity

• Updates in federal/state estate tax or probate laws

Why Regular Reviews Matter

• Minimize unintended consequences: Outdated plans may leave assets to people you no longer want or exclude intended heirs.

• Ensure legal compliance: A move or change in law could invalidate critical elements of your plan .

• Reflect evolving priorities: As life unfolds, your priorities shift—your estate plan should too.

State-Specific Issues

Estate planning is highly state‑specific. Documents like healthcare directives and powers of attorney may not carry over seamlessly after a move. It's crucial to consult an attorney licensed in your new state to ensure compliance with local law .

Final Thoughts

Estate planning offers peace of mind—for you and your loved ones. A thoughtful plan not only minimizes legal hassles, costs, and tax burdens but also ensures your legacy is honored. Regular updates help maintain effectiveness and relevance. Partnering with an experienced estate planning attorney ensures your plan adapts with your life—and remains legally sound.

DISCLAIMER: The content provided above is for informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Every case is unique, and we encourage you to contact DeVault Law, LLC to discuss your specific legal needs with a qualified attorney licensed in New Jersey.