Estate planning is more than just creating a will or trust—it's an ongoing process that requires periodic review to ensure that your plan remains effective and legally sound. Given that laws frequently change, especially in Pennsylvania, it's crucial to regularly revisit your estate plan to make sure it continues to meet your goals and complies with current regulations.

Here are some reasons why you should schedule an estate planning "checkup" and what to look out for:

1. Changes in Pennsylvania Inheritance and Tax Laws

Estate and tax laws can change over time, which may affect how your assets are distributed and taxed after your death. For example, Pennsylvania imposes an inheritance tax on certain beneficiaries, but exemptions or rates may shift. If your estate plan is outdated, you could face unexpected tax burdens or missed opportunities for savings.

In a checkup, an estate planning attorney can ensure that your plan is structured to take advantage of the latest tax-saving strategies and any relevant legal changes.

2. Changes in Federal Estate Tax Laws

While Pennsylvania does not have an estate tax, the federal estate tax might apply to larger estates. The federal estate tax exemption amount changes periodically due to inflation adjustments. If your estate plan was created when the exemption was lower, it may need to be adjusted to reflect the current limits.

The current $13.61MM federal estate tax exemption is scheduled to be cut to about $7MM at the end of 2025, which will expose many more families to the 40% federal estate tax. For those with high-value estates, gifting strategies, trust structures, or charitable donations may need to be updated to maximize tax efficiency.

3. Life Events That Impact Your Plan

Significant life changes, such as the birth of a child, a marriage, or a divorce, can have a major impact on your estate plan. In Pennsylvania, marriage or divorce may automatically revoke or alter certain provisions in your will. If your plan doesn't reflect these changes, it may not distribute your assets in the way you intend.

A checkup allows you to update beneficiary designations, guardianship provisions, or spousal inheritance rights to account for changes in your personal circumstances.

4. Updates to Power of Attorney and Healthcare Directives

In Pennsylvania, laws surrounding powers of attorney and healthcare directives have been updated in recent years. If your plan includes outdated versions of these documents, it could result in complications when they are needed the most. For example, Pennsylvania revised its power of attorney laws in 2015, and older versions of this document may not offer the protections or legal authority necessary in today's environment.

During your checkup, your attorney will review and update these critical documents to ensure they still meet legal standards and adequately reflect your wishes.

5. Changes in Asset Structure

Your financial situation may have changed since you first created your estate plan. Whether you've acquired new property, started a business, or made investments, it's important to ensure your estate plan accounts for these assets.

For instance, retirement accounts, life insurance policies, and jointly owned property may pass outside of your will. You should verify that your beneficiary designations align with your overall estate plan. This checkup ensures that all assets are properly accounted for and distributed according to your wishes.

6. Review of Your Trusts

If your estate plan includes trusts, such as a revocable living trust or an irrevocable trust, periodic review is essential. Changes in laws related to asset protection, Medicaid planning, or taxes may require adjustments to the terms of your trust. Additionally, if the trust beneficiaries' circumstances have changed—such as a beneficiary facing financial difficulty or divorce—it may be wise to modify your trust's terms to protect assets.

7. Confirming Executor or Trustee Designations

Over time, the individuals you designated as your executor or trustee may no longer be the best choices. People may pass away, move, or have life changes that make it difficult for them to serve in these roles. A checkup gives you the opportunity to confirm or update these designations and ensure the right person is handling your estate.

Conclusion

Estate planning is not a one-and-done task. With changing laws and personal circumstances, a regular estate plan checkup is essential to ensure your plan remains up to date and effective. By working with an estate planning attorney, you can ensure your documents reflect current laws and that your legacy is protected for your loved ones. My office understands the importance of regular estate plan reviews, and, as a part of our standard practice, we check in with our clients every couple of years to ensure their estate plans still function the way each client wishes.

If you haven't reviewed your estate plan recently, now may be the perfect time to schedule an estate planning checkup. Contact my office by using the link below to set up a free consultation and ensure your estate plan is up to date, and functions the way you desire.

https://letsmeet.io/scottlynett/free-15-min-consult-phone