Overview
Keeping your estate planning documents up to date is essential, regardless of market conditions. Regular review helps ensure that your plan continues to reflect your wishes, protect your family, and operate as intended. It is also important to revisit these documents periodically in light of changes in your family circumstances, financial situation, or applicable law.
Whether you are starting from scratch or reassessing an existing plan, our Q&A is here to help.
In Depth
What are the “fundamental” estate planning documents?
At a minimum, most estate plans include:
- A will (or, in some cases, a revocable living trust (revocable trust) used as a “will substitute”).
- A healthcare proxy.
- A durable power of attorney.
In addition, beneficiary designations for life insurance policies and retirement accounts should be reviewed regularly. Because these assets pass outside of a will or revocable trust, keeping them aligned with your broader estate plan is essential.
Are all wills and trusts created equal?
No. While the documents may appear similar on the surface, their structure and operation can differ significantly. Broadly speaking, estate plans tend to follow one of two basic testamentary approaches:
- A stand-alone will, which contains all dispositive provisions, including any testamentary trusts that take effect upon death.
- A pour-over will, which works in conjunction with a revocable trust and directs assets into that trust at death.
The appropriate approach depends on your specific circumstances and objectives, including the probate system and any related court-supervised administration or accounting requirements in the state or states that may govern your estate.
How do I decide between a stand-alone will and a pour-over will?
A stand-alone will may be sufficient where ongoing trust administration is unlikely to be needed.
By contrast, a pour-over will paired with a revocable trust is often used to facilitate continuity in asset management – both during periods of incapacity and immediately following death. In this structure, the revocable trust serves as the primary vehicle for implementing your estate plan.
How do revocable trusts operate?
Revocable trusts are commonly used as will substitutes. During your lifetime, you typically serve as both grantor and initial trustee, retaining full control over the trust assets and the ability to amend or revoke the trust at any time. When properly funded during lifetime, assets held in a revocable trust can generally be managed and distributed outside the applicable state probate process, helping reduce court-related delays and disruption that can vary by jurisdiction. Assets not transferred to the trust may still require probate or another transfer procedure.
Funding a revocable trust can offer two principal administrative benefits:
- Avoiding probate delays and potential disruption. Assets held in the trust are not subject to the same court processes required to appoint an executor, allowing trustees to act immediately after death and reducing the risk that assets are effectively “frozen” during periods of market volatility.
- Planning for incapacity. A funded trust enables a successor trustee to step in and manage assets if you become unable to do so, reducing reliance on a power of attorney alone. In many cases, a successor trustee can assume authority quickly by executing a simple acceptance, without court involvement.
Importantly, these benefits are administrative rather than tax-driven. The revocable trust structure itself is generally tax neutral: Using a revocable trust rather than a stand-alone will does not, by itself, produce income tax or estate tax savings. Trusts designed primarily for transfer-tax planning are usually irrevocable trusts or other more sophisticated strategies, which are not necessarily part of the fundamental estate planning document set.
What if I want to change trustees?
Over time, it may become necessary to replace or add trustees, and the ease of doing so depends on how the trust was established.
For trusts created under a revocable trust agreement, changes in trustees are typically straightforward and can often be implemented quickly without court involvement.
By contrast, changing the trustee of a testamentary trust – created under a will and typically administered in connection with the court-supervised probate process – is more complex. The process generally involves filing a petition with the probate court outlining the proposed change and notifying various interested parties, including individuals with remote future interests. Even if uncontested, the process may take several months for court approval.
What is a healthcare proxy, and why is it a fundamental estate planning document?
A healthcare proxy appoints the individual (or individuals) who can make medical decisions, including end-of-life decisions, for you if you are incapacitated. Simply naming such individuals is insufficient – it is important to discuss your medical wishes with them so they are prepared to carry out your preferences.
What is a power of attorney, and why is it important to designate such a person?
Granting a power of attorney allows you to authorize another person to manage your assets on your behalf. This authority is broad and may include the ability to make gifts, so it should only be given to a highly trusted individual. In some cases, as an additional safeguard, two individuals may be appointed and required to act jointly. Although a power of attorney is typically effective immediately, it is generally intended for use in the event of incapacity, whether short- or long-term.
Why is it important to keep estate planning documents up to date?
Periodic review helps confirm that estate planning documents remain aligned with the intended structure of your estate plan. Over time, fiduciary appointments, beneficiary designations, asset titling, family circumstances, and applicable law may change. Keeping these documents current can help reduce confusion, delay, or unintended results when trustees, agents, healthcare decision-makers, or other fiduciaries need to act.