Why Now Is the Time to Review and Update
Life doesn’t stand still. Families grow and change, careers shift, assets increase, and sometimes unexpected challenges appear. Yet one thing I see all too often is that people create an estate plan once and then tuck it away, never revisiting it. The problem is that what worked for you five, ten, or twenty years ago may no longer reflect your life today.
An outdated estate plan can create confusion, unexpected tax burdens, and even disputes among loved ones. Making sure your plan is current is one of the most meaningful steps you can take to protect your family and preserve your legacy. Why Updating Matters Think of your estate plan as a roadmap. If the directions are old, they may no longer take you where you want to go. Here are a few common reasons why it might be time to review your plan:
- Family Changes: Marriages, divorces, births, or deaths in the family can all affect who you want
to inherit your assets or make decisions for you. - Financial Changes: A new home, business, or investment portfolio might require adjustments to
your trust or will. - Law Changes: Pennsylvania’s inheritance tax remains a key factor in planning. Transfers to
children are taxed at 4.5%, to siblings at 12%, and to others at 15%. Without proper planning,
these rates can significantly reduce what your loved ones actually receive. - Health Considerations: Updated healthcare directives and powers of attorney ensure the right
people are empowered to act if you cannot
Pennsylvania-Specific Considerations
Here in Pennsylvania, unique rules make reviewing your plan especially important. For example:
- Inheritance Tax: Unlike some states, Pennsylvania imposes an inheritance tax on most transfers at death, and planning strategies such as trusts, lifetime gifts, or family business transfers may help reduce the burden.
- Probate: While Pennsylvania’s probate process is manageable compared to some states, assets titled
jointly or placed in a revocable living trust can often bypass probate altogether, saving time and reducing costs. - Real Estate: Many Pennsylvanians own property in more than one county or even another state. Without proper planning, that can mean multiple probate proceedings.
When Life Outgrows Your Old Plan
Consider someone who created a will 15 years ago when their children were in elementary school. At that time, the plan was focused on naming guardians for the kids and making sure they would have immediate access to funds when they turned 18. On paper, it made perfect sense — the plan fit the stage of life they were in.
But now, those children are young adults. One is building a career, another is still in college, and one has special needs that require ongoing care. The old plan, which leaves everything outright at age 18, no longer makes sense. For the college student, an outright inheritance could disrupt financial aid eligibility. For the child with special needs, inheriting assets directly could jeopardize important government benefits. And for the child starting out in a career, having a sudden windfall at a young age may create more problems than it solves.
By updating the plan, this family can instead direct assets into trusts for each child, tailoring the distributions to their individual needs. For example, the special needs trust can safeguard benefits, the college trust can provide structured support, and the young professional’s trust can help with housing or career building expenses without handing over a lump sum. What began as a simple plan when the children were small is no longer the right fit. Updating ensures the plan grows with the family, protecting each child in the way that’s most meaningful for them.
Don’t Wait Until It’s Too Late
An estate plan is not meant to be “set it and forget it.” It should grow and change with you. Reviewing your plan every three to five years, or after a major life event, is a smart way to make sure it still reflects your wishes and protects your family. When you create your estate plan with the Law Office of Scott Lynett, our relationship doesn’t end once you sign the documents. Every three years, we’ll reach out to check in and make sure your plan still reflects your wishes and complies with Pennsylvania law, giving you confidence that your legacy is always protected.
Your loved ones deserve clarity, not confusion. The best gift you can give them is a thoughtful, updated plan that spares them unnecessary stress and expense.
Whether you’re drafting your first plan or updating an existing one, taking action is one of the most caring and responsible things you can do for yourself and for the people you love. Call us at (570) 468-7603 to schedule a free consultation. Together, we can make sure your plan is ready for whatever life brings next.
