Estate planning is not a one-time task but an ongoing process that should evolve with your life circumstances. Regularly reviewing and updating your estate plan ensures that your assets are distributed according to your current wishes and that your loved ones are protected. This guide outlines when and why you should revisit your estate plan, supported by recent statistics and expert recommendations.

Why Regular Estate Plan Updates Are Essential

Life is dynamic, and significant events can impact your financial and personal situations. Updating your estate plan ensures that it reflects your current circumstances and intentions. Failing to do so can lead to unintended consequences, such as assets being distributed contrary to your wishes or unnecessary legal complications for your heirs.

Recommended Review Frequency

Experts suggest reviewing your estate plan every three to five years. This periodic review helps ensure that your plan remains aligned with your current goals and complies with any changes in laws or regulations. Additionally, certain life events should prompt an immediate review and potential update of your estate plan.

Life Events That Warrant an Immediate Update

Consider updating your estate plan when the following events occur:

• Marriage or Divorce: Changes in marital status can significantly affect your estate plan.
• Birth or Adoption of a Child: Adding new family members necessitates updates to guardianship designations and asset distribution.
• Death of a Beneficiary or Executor: If someone named in your estate plan passes away, you’ll need to appoint new individuals to those roles.
• Significant Changes in Assets: Acquiring or disposing of substantial assets, like real estate or business interests, should be reflected in your estate plan.
• Relocation: Moving to a different state or country can affect the validity and interpretation of your estate documents due to varying laws.
• Health Changes: A significant health diagnosis may prompt revisions to healthcare directives and powers of attorney.

The Risks of Neglecting Estate Plan Updates

Neglecting to update your estate plan can lead to several issues:

An outdated estate plan can do more harm than good. Life changes—whether gradual or sudden—can make parts of your plan obsolete or legally ineffective. If you haven’t reviewed your estate documents recently, you could be unintentionally setting your loved ones up for financial and emotional difficulties. Here are the most common and significant risks of failing to update your estate plan:

Outdated Beneficiaries

One of the most common mistakes in estate planning is forgetting to update beneficiary designations after major life events such as divorce, remarriage, the birth of children or grandchildren, or the death of a loved one.

What this could mean:

• Your ex-spouse may still inherit a significant portion of your estate.
• A new child or grandchild could be unintentionally excluded from receiving assets.
• Beneficiaries listed on life insurance policies, retirement accounts, or pay-on-death accounts may no longer align with your current intentions.

Example: If your will still names your former spouse as a beneficiary, they could legally receive those assets—despite your wishes to the contrary.

Legal Complications

An outdated estate plan may result in confusion, conflicting instructions, or a lack of clarity that leads to family disputes and legal battles. Inconsistencies between your will, trust, and beneficiary designations can cause delays in probate and increase the likelihood of court involvement.

What this could mean:

• Heirs may challenge the will or trust, claiming undue influence, ambiguity, or fraud.
• Without clear instructions, the probate court will need to step in and make decisions that may not reflect your true intentions.
• Guardianship issues for minor children may arise if your will doesn’t reflect your current family structure.

Example: Naming a deceased or incapacitated individual as your executor or trustee can create legal delays until a suitable replacement is appointed by the court.

Tax Implications

Federal and state tax laws change frequently. An estate plan that was tax-efficient ten years ago might now expose your estate to avoidable taxes, reducing the amount your heirs ultimately receive.

What this could mean:

• You could miss out on new strategies for reducing estate, gift, or capital gains taxes.
• Your estate might be taxed at higher rates due to outdated trust structures or asset allocations.
• Your plan may not take advantage of Maryland-specific tax exemptions or credits.

Example: The federal estate tax exemption is expected to sunset in 2026, potentially reducing the amount you can leave tax-free from over $13 million to about $5 million per individual. If your plan was created with the higher exemption in mind, your estate may face significant unexpected taxes unless you update your documents in time.

Statistics Highlighting the Importance of Updates

Recent studies underscore the need for regular estate plan reviews:

• Only 33% of U.S. adults have created estate planning documents.
• Approximately 62% of individuals updated their wills between six months and five years ago, often due to significant life events.
• A significant number of Americans lack awareness of their parents’ estate plans, with 52% not knowing where these documents are stored.

Steps to Keep Your Estate Plan Current

1. Schedule Regular Reviews: Mark your calendar to review your estate plan every three to five years.
2. Monitor Life Changes: Be proactive in updating your plan when significant life events occur.
3. Consult Professionals: Work with an estate planning attorney to ensure your documents are legally sound and reflect your current wishes.
4. Communicate with Family: Discuss your estate plan with your loved ones to ensure clarity and prevent future disputes.
5. Update Beneficiary Designations: Regularly check and update the beneficiaries on retirement accounts, insurance policies, and payable-on-death accounts. These often override your will or trust, so it’s critical they match your overall plan.
6. Review Powers of Attorney and Health Directives: Ensure your named agents for financial and healthcare decisions are still appropriate and willing to serve in those roles. Also, confirm your medical directives align with your current wishes.
7. Organize and Store Documents Safely: Keep original documents in a secure, fireproof location, and ensure your executor or trustee knows where to find them. Consider using a digital vault for backup.
8. Create a Digital Asset Inventory: As more of your financial life moves online, maintain an updated list of digital assets (online accounts, logins, crypto, etc.) and how you want them handled after death

In Conclusion

Regularly updating your estate plan is crucial to ensure that your assets are distributed according to your current wishes and that your loved ones are protected. By reviewing your plan every three to five years and after significant life events, you can maintain control over your legacy and provide peace of mind for your family.

Get Expert Help with Your Maryland Estate Plan

If it’s been more than a few years since you’ve reviewed your estate plan—or if you’ve experienced a major life change—it’s time to revisit your documents. At Blackford & Flohr, our experienced Maryland estate planning attorneys are here to help you update your will, trust, powers of attorney, and more.

Contact us today to schedule your confidential consultation and ensure your estate plan continues to protect your family, your assets, and your legacy.