Annual Legacy Review: What to Update Every Year

Your Estate Plan Has an Expiration Date

Creating an estate plan feels like a finish line. You did the work, signed the documents, organized the binder. Done.

Except it's not done. An estate plan is a living document — or rather, a living collection of documents, designations, and decisions that need regular attention to remain effective.

Estate planning attorneys report that outdated beneficiary designations are one of the most common — and most costly — mistakes they see. A designation made ten years ago doesn't automatically update when your life changes.

Life changes constantly. You open new accounts, close old ones, move to a new state, gain family members, lose them, change your mind about things. If your estate plan doesn't change with you, it becomes a snapshot of who you were — not who you are.

An annual review takes one to two hours and can prevent disasters that cost your family thousands of dollars, months of legal headaches, and untold emotional stress.

When to Do Your Annual Review

Pick a consistent date that's easy to remember. Popular choices include:

Your birthday — A natural time for life reflection
New Year's Day or first week of January — Fresh start energy
Tax Day (April 15) — You're already thinking about finances
Your wedding anniversary — Connects the review to family
A specific seasonal date — First day of fall, for example

Whatever date you choose, put it on your calendar as a recurring appointment. Treat it like a dentist visit — something you do annually whether you think you need it or not.

The Annual Review Checklist

Part 1: Life Changes Inventory

Start by scanning the past year for events that affect your plan. Check any that apply.

Family changes:

[ ] Did you get married or divorced?
[ ] Was a child or grandchild born?
[ ] Did a family member die?
[ ] Did a named guardian, executor, trustee, or agent become unable or unwilling to serve?
[ ] Did your children reach adulthood (18 or 21, depending on your state)?
[ ] Did any family relationships change significantly?
[ ] Did a child get married or divorced?

Financial changes:

[ ] Did you open or close any bank, investment, or retirement accounts?
[ ] Did you start or sell a business?
[ ] Did you receive an inheritance?
[ ] Did your income change significantly (up or down)?
[ ] Did you take on or pay off major debt?
[ ] Did your net worth cross a significant threshold?

Property changes:

[ ] Did you buy or sell real estate?
[ ] Did you move to a different state?
[ ] Did you acquire valuable personal property (art, jewelry, vehicles)?
[ ] Did you open or close a safe deposit box?

Employment and benefits changes:

[ ] Did you change jobs?
[ ] Did you retire?
[ ] Did your employer change benefit providers?
[ ] Did you start or stop contributing to a retirement plan?
[ ] Did your employer-provided life insurance change?

Health changes:

[ ] Did you develop a new health condition?
[ ] Did your views on end-of-life care change?
[ ] Did your healthcare proxy's situation change?

If you checked any of these boxes, your estate plan likely needs updating. Even if you didn't, the sections below will help you verify that everything is still in order.

Part 2: Beneficiary Designation Review

This is the single most important part of your annual review. Beneficiary designations override your will — meaning the names on your accounts, not the names in your will, determine who gets those assets.

For each of the following, verify the primary and contingent beneficiaries are correct:

[ ] 401(k) / 403(b) — current employer
[ ] 401(k) / 403(b) — any former employers (did you roll these over?)
[ ] Traditional IRA
[ ] Roth IRA
[ ] SEP IRA or SIMPLE IRA
[ ] Life insurance policies (employer-provided)
[ ] Life insurance policies (individually owned)
[ ] Annuities
[ ] Bank accounts with payable-on-death (POD) designations
[ ] Investment accounts with transfer-on-death (TOD) designations
[ ] Health savings account (HSA)
[ ] 529 education savings plans

Red flags to look for:

An ex-spouse still listed as a beneficiary
A deceased person listed as a beneficiary
No contingent beneficiary named
"My estate" listed as beneficiary (this can create probate and tax problems)
A minor child listed as a direct beneficiary (minors can't inherit directly — a trust or custodial arrangement is needed)

Part 3: Document Review

Pull out your legal documents and verify each one.

Will:

[ ] Still reflects your current wishes for asset distribution?
[ ] Named executor still willing and able to serve?
[ ] Named guardians (for minor children) still appropriate?
[ ] Any specific bequests still relevant? (Did you leave something to someone who's since passed away? Did you leave an item you no longer own?)
[ ] If you've moved to a new state, does your will comply with your current state's laws?

Trust (if applicable):

[ ] Trust still reflects your wishes?
[ ] Successor trustee still appropriate?
[ ] Are new assets properly titled in the trust? (A common oversight — people create a trust but forget to fund it with newly acquired assets.)
[ ] Distribution provisions still make sense for your beneficiaries' current situations?

Power of Attorney — Financial:

[ ] Named agent still the right person?
[ ] Backup agent still appropriate?
[ ] If you've moved states, does the document comply with your new state's requirements?

Healthcare Directive / Living Will:

[ ] Medical treatment preferences still reflect your wishes?
[ ] Healthcare proxy still the right person?
[ ] Backup proxy still appropriate?
[ ] Your healthcare providers have current copies?

HIPAA Authorization:

[ ] Still names the right people?
[ ] Healthcare providers have current copies?

Part 4: Financial Account Review

Verify your master account list is current.

[ ] Are all current accounts listed?
[ ] Have any accounts been closed that should be removed?
[ ] Are approximate balances reasonably current?
[ ] Is the contact information for each institution still accurate?
[ ] Have any accounts changed ownership or been retitled?

Part 5: Insurance Review

[ ] Life insurance coverage still adequate? (Has your income or obligations changed?)
[ ] Premiums still being paid? (Especially important for policies on autopay — a changed credit card or bank account can cause a lapse.)
[ ] Long-term care insurance still in force?
[ ] Disability insurance current?
[ ] Homeowner's insurance reflects current property value?
[ ] Auto insurance reflects current vehicles?
[ ] Umbrella liability insurance still appropriate for your asset level?

Part 6: Digital Asset Review

[ ] Password manager updated with current accounts?
[ ] New digital accounts added to your inventory?
[ ] Closed accounts removed?
[ ] Social media legacy settings still configured correctly?
[ ] Cryptocurrency access information current (if applicable)?
[ ] Two-factor authentication recovery methods still accessible?

Part 7: Emergency Binder Update

If you maintain an emergency binder or legacy document:

[ ] All sections reviewed and updated?
[ ] Contact list current?
[ ] Document copies current?
[ ] Storage location still secure and accessible?
[ ] Your designated person still knows where to find it?

Part 8: Conversations Check

[ ] Have you communicated any changes to the people affected?
[ ] Does your executor have current information?
[ ] Does your healthcare agent understand your current wishes?
[ ] Does your financial agent know your current financial picture?
[ ] Are your children aware of the plan (age-appropriately)?

Life Events That Trigger an Immediate Review

Beyond your annual review, certain events should prompt an immediate review of your estate plan — don't wait for your scheduled date.

High-priority triggers:

Marriage or divorce
Birth or adoption of a child
Death of a beneficiary, executor, trustee, or agent
Diagnosis of a serious illness
Move to a new state
Significant change in net worth (inheritance, business sale, market event)
Change in federal or state estate tax laws

Medium-priority triggers:

Child reaching adulthood
Retirement
Purchase or sale of real estate
Starting or closing a business
Changing jobs
Remarriage of a parent (affects potential claims on the estate)

The One-Hour Annual Review Process

Here's how to get through the entire review efficiently.

Minutes 1-10: Life Changes Inventory. Scan the checklist and note everything that's changed.

Minutes 10-25: Beneficiary Review. Log into your major accounts and verify beneficiary designations. This is the most impactful use of your time.

Minutes 25-40: Document Scan. Pull out your legal documents and verify key provisions are still current. Note anything that needs professional attention.

Minutes 40-50: Financial and Insurance Check. Verify your account list and insurance coverage are current.

Minutes 50-60: Communication. Make a list of anyone who needs to be updated on changes, and schedule those conversations.

If you discover issues that require professional help — outdated legal documents, insufficient insurance coverage, complex beneficiary situations — schedule appointments with your attorney, financial advisor, or insurance agent. Your annual review identifies the problems; your professional team fixes them.

Making It Stick

The hardest part of an annual review isn't doing it — it's remembering to do it. A few strategies that help:

Calendar it now. Pick your date and create a recurring annual calendar event with a reminder one week before.

Pair it with something. Do your estate review the same week you do your taxes, or on the same weekend you change your clocks for daylight saving time. Attaching it to an existing habit makes it more likely to happen.

Make it a couple's activity. If you have a partner, do the review together. It takes the same amount of time and ensures you're both on the same page.

Keep a "changes" note. Throughout the year, when something changes that might affect your plan, jot it on a running note. When review time comes, you'll have a head start.

Your estate plan is only as good as its last update. An hour once a year is a small investment to make sure everything you've planned still works the way you intend.