The right time to update estate planning documents is before you need to. That may sound obvious, but most people file their paperwork away after the initial signing and do not look at it again for years. However, a past will reflects who you were when you wrote it. If you do not update your will regularly, you may find beneficiary designations that list people from a chapter of your life that has long since closed. Perhaps the power of attorney names someone who may no longer be the right person for that responsibility.
None of that becomes a real problem until something goes wrong. By then, the people you were trying to protect are the ones left sorting it out.
What Happens to an Estate Plan That Is Never Reviewed?
An estate plan does not self-correct. Whatever is in those documents on the day they are signed is what controls, unless you act to change it.
Beneficiary designations are the most common place where outdated plans cause real harm. A retirement account or life insurance policy pays its proceeds to whoever is named on the account itself, not to whoever your will says should receive it. If you named an ex-spouse, a deceased parent, or a person you have lost touch with, that is who gets paid. Pennsylvania courts will not override a valid beneficiary designation because it conflicts with your will.
Powers of attorney have the same problem. A document naming someone who has since died, moved away, or lost your trust does not amend itself. It sits there until someone tries to use it, and then the trouble starts.
Does Marriage or Divorce Require a Plan Update?
Both circumstances often trigger a plan update for different reasons. Marriage may mean adding a spouse as a beneficiary, naming them as an agent under your financial power of attorney, or restructuring your plan to reflect a shared life. A will drafted before the marriage will not automatically account for a new spouse.
Divorce creates a more urgent situation. Pennsylvania law under 20 Pa. C.S. Section 2507 revokes will provisions that benefit a former spouse upon the entry of a final divorce decree. That is a meaningful protection, but it does not reach beneficiary designations on retirement accounts or life insurance policies governed by federal law. Those designations remain in place unless you change them yourself. A former spouse named on a retirement account will still receive those funds regardless of what your will says, and no state court provision will fix that. A thorough plan update is the only reliable correction.
What About the Birth or Adoption of a Child?
A birth or adoption changes nearly every calculation in your estate plan. You may need to update your will to name the child as a beneficiary, designate a guardian, or establish a trust to hold assets for the child until adulthood.
Pennsylvania’s pretermitted heir statute, found at 20 Pa. C.S. Section 2507, addresses children born or adopted after a will is executed. Whether your existing documents account for the child, or whether a formal update is needed, depends on the specific language in your plan. An attorney can review what you have and explain how the statute applies to your circumstances. If you are welcoming a child through adoption in Pennsylvania, that review should happen before, not after, the process is finalized.
What If Your Financial Situation Has Changed?
A major shift in assets is a reliable signal that the plan you drafted under different circumstances may no longer fit. The purchase or sale of real estate, a significant inheritance, starting or closing a business, or a substantial change in retirement savings can each affect whether your existing documents are structured appropriately for where you are now.
Pennsylvania real estate held in your name alone passes through your estate upon death and is subject to the probate process. How that property is titled, and how your will addresses it, both matter. If you have acquired property since your plan was last reviewed, an attorney can confirm whether the deed and your documents are working together the way you intended, or if you need to update your estate plan.
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Does Moving to a New State Mean You Need to Update Your Plan?
A move to Pennsylvania from another state is a reason to have your documents reviewed before you assume they are still valid. Estate planning documents drafted in another state may hold up in Pennsylvania, but the applicable statutes differ, and certain provisions may not translate cleanly.
Pennsylvania imposes an inheritance tax on transfers to certain beneficiaries, and that tax applies regardless of how your estate is structured. Documents drafted under another state’s laws will not account for Pennsylvania’s inheritance tax rules. If you recently moved to Lancaster County, an attorney familiar with Pennsylvania law can review your existing plan and identify anything that needs to change.
How Often Should You Review Your Estate Plan Even Without a Major Change?
A meaningful life event is not the only reason to take a fresh look at your plan. Even when nothing dramatic has happened, estate plans benefit from periodic attention.
Reviewing every three to five years is a reasonable approach to update your estate plan. Pennsylvania law can shift. The people named in your documents age, move, and change in ways that can affect your estate. The executor named in your will a decade ago may no longer be the right choice. The agents named in your powers of attorney may be in different circumstances than when you appointed them.
The documents that make up a complete estate plan, including your will, powers of attorney, healthcare directives, and any trusts, are only as reliable as the last time someone sat down with them and confirmed they still made sense.
What Parts of Your Plan Are Most Likely to Be Outdated?
Beneficiary designations, as covered above, are the most frequently neglected piece. Powers of attorney follow closely behind.
Pennsylvania’s Power of Attorney Act, found at 20 Pa. C.S. Chapter 56, was significantly amended in 2015. Documents executed before those amendments took effect may include language that financial institutions or healthcare providers no longer accept as sufficient. If your power of attorney predates those changes, a review is overdue.
Your Plan Should Reflect Your Life as It Is Now
The will you signed on a particular day, with a particular set of assets and people in mind, was accurate for that moment. The goal is to keep it accurate for this one. Marriage, divorce, a birth or adoption, a significant change in assets, a move to a new state, and the passage of time are all important reasons to update estate planning documents. None of them should be put off until a crisis forces the issue.
Your Estate Plan Deserves a Fresh Set of Eyes
At May Herr & Grosh LLP, our attorneys work with individuals and families throughout Lancaster, PA, and the surrounding areas to keep estate planning documents current, accurate, and aligned with Pennsylvania law. Whether you need to update a will after a major life event, revisit your beneficiary designations and powers of attorney, or sit down with an attorney to see where your existing plan stands, we can help.
