Tax Season Is the Best Time to Review Your Estate Plan

Every spring, millions of Americans dig through financial documents, track down brokerage statements, and take stock of their assets — all in the name of filing taxes. But according to estate planning and tax professionals, there's a hidden opportunity buried in that annual ritual: a chance to check in on your estate plan.

"The tax return tells a story from front to back," says Kayvon Salafian, CEO of Woodsboro Advisors, Inc. and a 21-year tax professional. "It tells a lot about an individual — their marital status, investments, properties, businesses. The tax return could be very current, but the estate plan could be non-existent or stale-dated from five or ten years ago."

If you're already pulling together your financial documents this tax season, you're more prepared for an estate plan review than you might think. Here's how to make the most of the moment.

In this article, we'll cover:

• Why tax season and estate planning go hand in hand

• Which documents serve double duty — for taxes and your estate plan

• Key life events that mean your estate plan needs an update

• How to get started with Trust & Will

Why Tax Season Is a Natural Trigger for Estate Planning

Your tax return is essentially a financial snapshot of your life. It captures your income sources, assets, business interests, real estate, and investments — the very same information that forms the foundation of a solid estate plan.

The problem? While your taxes get filed every year, your estate plan may not have been touched in years. Salafian sees this pattern constantly with his clients. "The estate plan could be stale-dated — potentially five to ten years old," he notes. "One of the largest wealth transfers in history is happening right now. Estate planning has become more important than ever."

This is where tax season can work in your favor. You're already organized. The documents are already in front of you. The hardest part — getting started — is already done.

Documents That Work for Both Tax Season and Your Estate Plan

One of the most practical takeaways from Salafian's advice: the documents you gather for your taxes are many of the same ones you'd bring to an estate planning review. Rather than filing them away after April 15th, consider using them to evaluate whether your estate plan still reflects your current life.

Key documents to look at through both lenses:

• Brokerage statements and investment accounts

  — Do your beneficiary designations match your current wishes?

• Business financials and K-1s

  — Is your business interest accounted for in your estate plan? Do you have a succession plan in place?

• Property records

  — Are all owned properties — primary residence, investment properties, vacation homes — properly titled or accounted for in your estate plan?

• Articles of incorporation and business formation documents

  — Especially important if you own or co-own a business.

• Retirement account statements

  — Beneficiary designations on accounts like 401(k)s operate independently of your will. They must be updated separately.

"Just because a will has been updated doesn't mean that covers what's needed with beneficiary designations," Salafian cautions. "You still have to update those designations. If something's still dated there, it doesn't matter if the will is updated."

This is a critical — and commonly overlooked — point. Your beneficiary designations can override what's written in your will, which means outdated designations could send assets to the wrong person entirely.

Life Events That Mean It's Time to Update Your Estate Plan

Experts recommend reviewing your estate plan every three to five years — but certain life events call for an immediate update, regardless of when you last reviewed it. Salafian frames it simply: "Anytime there's a major life event, that story needs to be updated, too."

Those events include:

• Getting married or divorced

• Having or adopting a child

• The death of a loved one (especially a beneficiary or executor)

• Buying or selling real estate

• Starting, growing, or selling a business

• Moving to a new state

• A significant change in net worth or inheritance

• Approaching retirement

The risk of letting life move faster than your documents? Probate. Salafian knows this firsthand — his own family went through the probate process after his father passed in 2020, because the estate plan in place was outdated and didn't account for properties and investments acquired over the years.

"Estate planning isn't about documents," he says. "It's about protecting families."

If your estate plan hasn't kept pace with your life, your loved ones could face a lengthy, expensive, and entirely avoidable court process. According to Trust & Will data, the average cost of probate is $25,000 in legal fees and takes an average of 20 months to close.

The Financial Trifecta: Tax Plan + Financial Plan + Estate Plan

Salafian describes the ideal approach to financial wellbeing as a "trifecta": a tax plan, a financial plan, and an estate plan — all working in sync.

"When we talk about a comprehensive plan for a client, it includes all three," he says. "That's the trifecta."

Most people stay on top of their taxes — the IRS makes sure of that. Many work with financial advisors to monitor their investments and plan for retirement. But the estate plan often falls through the cracks, quietly falling out of date until a major life event forces the issue.

Tax season, then, is more than a filing deadline. It's a built-in annual reminder to check in on the third pillar of your financial life.

You can store your important financial and legal documents — including your estate plan — securely in Trust & Will's Digital Vault, so everything is organized and accessible when you need it most.

How to Review and Update Your Estate Plan

Not sure where to start? Here's a simple framework:

1. Gather your financial documents

   — the ones you're already pulling together for taxes.

2. Check your beneficiary designations

   — on retirement accounts, life insurance policies, and investment accounts.

3. Review your will or trust

   — does it reflect your current wishes, assets, and family situation?

4. Update your Health Care Documents

   — your Advance Healthcare Directive and Power of Attorney should reflect your current preferences and the right people in your life.

5. Consider your full asset picture

   — are all properties, accounts, and business interests properly addressed?

If it's been more than three to five years, or if you've experienced any of the life events listed above, it's time to take action. And if you don't have an estate plan yet? There's no better time to start than right now.

Don't Wait for a Reminder That Comes Too Late

Unlike your taxes, no one will send you a notice when your estate plan expires. There's no penalty for waiting — until there is. And by then, the burden falls on the people you love most.

Tax season is your annual opening. Use it.

At Trust & Will, we keep things simple. You can create a fully customizable, state-specific estate plan from the comfort of your own home. Take our free quiz to see where you should get started, or compare our different estate planning options today.

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Trust & Will is an online service providing legal forms and information. We are not a law firm and we do not provide legal advice.

Expert Contributor: Kayvon Salafian is the CEO and Owner of Woodsboro Advisors, Inc., a Santa Barbara County–based firm offering integrated tax, financial planning, and estate planning services through SYV Tax Professionals and Carpinteria Valley Tax Professionals. Salafian has over 21 years of experience as a tax professional and also serves as an Investment Advisor Representative.