Retired Military Finances 101: How Often Should I Update My Estate Plan?

Is the last time you updated your estate plan when you went through a military deployment line? It might be time to think about an update. Let's explore why regularly examining your estate plan and updating it when necessary is key to generational financial well-being.

How Often Should I Update My Estate Plan?

Many people wonder, "How often should I update my estate strategy?" The general rule of thumb is at least every 3-5 years, if not more often. Fidelity recommends reviewing your estate strategy when you review your entire financial plan, which could be annually, semi-annually, or quarterly.¹

But more importantly, you should review your estate strategy whenever you have a major life change.

Your estate strategy is a comprehensive set of legal documents that outline your wishes regarding your assets, property distribution, healthcare preferences, and more. However, life is unpredictable, and circumstances can change. Without regular updates, your estate strategy may not reflect your current situation or wishes.

Major Life Events That Signal an Estate Plan Review

While everyone may review their estate plan regularly at different intervals, certain life events should prompt an immediate review of your estate strategy. Here are some key events to consider:²

Marriage or Divorce
When you get married, you'll likely want to update your estate plan to include your spouse as a beneficiary. Conversely, divorce may necessitate removing an ex-spouse from your strategy.

Birth or Adoption of a Child
Welcoming a new child into your family means updating your plan to include them as a beneficiary. You'll also want to appoint guardians if something were to happen to you and your partner.

Death of a Loved One
The passing of a spouse, child, or another beneficiary should prompt a review of your estate plan to ensure assets are distributed according to your new wishes.

Change in Financial Status
Significant changes in your assets, whether through inheritance, investments, or property acquisitions, should trigger a review of your estate plan.

Relocation to Another State or Country
Laws regarding estates vary by jurisdiction. If you move, it's essential to review your plan to ensure it complies with local laws.

Changes in Health
If you're diagnosed with a serious illness or experience a decline in health, you should review and update your healthcare directives and powers of attorney.

The question of "How often should I update my estate plan?" comes down to a balance between regular reviews and responding to major life events. While a general timeline of every 3-5 years is a good rule of thumb, life changes should always prompt a review of your estate plan. Your plan should be a reflection of your current circumstances, wishes, and the legal landscape. By staying proactive and updating your estate plan accordingly, you can ensure that your loved ones are taken care of, and your legacy is protected.

Military Finances are Different

Everyone needs an estate plan. While we're in the military we often take care of that estate plan through the JAG and that works fine. Most of your civilian counterparts don't have that option. That is not the only way your finances are different than a civilian. Because your finances are different than a civilian, we think Active and Retired Senior Military Officers and NCOs should work with a financial planner/advisor that works with people like you each and every day. If you'd like to find out how we do that, use the button below to schedule a free initial consultation.

If you found this article useful, you might like the following blog posts:

Military Finances 401: Understanding Gift Taxes

Military Finances 101: August Is National "Make a Will" Month

One Reason to Consider Moving Your Assets Out of TSP - Estate Planning