Why an Outdated Estate Plan Is Worse Than Having None at All

By David Phillips

Building generational wealth is no easy feat. 

But handing off your assets to future generations without a hitch can be even tougher.

Take it from me: The most expensive estate planning mistake is not a complicated strategy gone wrong.

Rather, a plan that’s outdated or improperly designed can cause more damage than any complex tax issue ever could.

A Partial Plan Can Create a Whole Set of Problems

When it comes to estate planning, not having a plan can be one of the costliest mistakes you can make.

But after five decades of working with families, I can say with confidence that if you signed a will years ago, the job isn’t done. 

It’s a dangerous assumption to expect everyone will figure out the details in a way you would approve of. After all …

Life Rarely Stands Still

Marriages, divorces, births, deaths, relocations, business interests, asset growth and changes in tax law all affect how an estate should be structured.

Families are often shocked to discover that documents prepared 10 or 15 years ago no longer reflect their reality.

And an estate plan can suddenly raise more questions than it was designed to solve in the first place.

When clear instructions do not exist, families are left to interpret intent during emotionally charged moments.

• Probate courts step in.

• Legal fees increase.

• Assets are delayed or distributed in ways the deceased never intended.

In many cases, family relationships suffer permanent damage — not because of greed, but because of confusion.

Estate planning isn’t just about paperwork. It is about providing your heirs with clarity.

A properly constructed plan clearly defines who receives assets, when they receive them and how those assets are managed. 

It coordinates wills, trusts, beneficiary designations and powers of attorney. That way, they work together rather than against each other.

The Case Against D-I-Y

Unfortunately, Do-It-Yourself estate planning kits can create more problems than they prevent.

Sure, it sounds easy to fill out a form online to create a trust or a will. And maybe you remember to download it and get it notarized. 

More often than not, those documents are never fully completed. Trusts get created but never funded. And I’ve seen people create multiple wills over the years, with conflicting instructions.

Look, things happen. Your assets change over time. So do your beneficiaries.

And you can save them all a lot of stress by keeping your estate plan current.

Give Your Beneficiaries the Benefit of a Review

Retirement accounts and insurance policies pass by beneficiary designation, not by a will or a trust. 

So even if you’ve got plenty of assets to disperse, they may not end up going to the intended people. 

So, your estate plan could get bypassed entirely.

A common misconception is that having “something” in place is better than nothing. 

In reality, an incomplete or inconsistent plan can create more problems than having no plan at all, because it gives families false confidence.

If It’s Been More Than 5 Years, It’s Time for a Review

Regular estate plan reviews are not optional.

Estate planning should never be viewed as a one-time transaction. 

At a minimum, documents should be reviewed every five years and immediately after major life events. 

Laws change. 

For instance, the Secure Acts — the first in 2019 and the second in 2022 — are not that old. 

They completely changed the game for everything from Required Minimum Distributions, or RMDs, from retirement accounts to how long heirs have to empty an inherited account.

Any estate plan you have that was finalized more than four years ago needs an update to reflect these changes. 

After all, families change. New grandchildren, divorces and marriages all require fresh looks at your estate plans.

Financial circumstances change, too. Job losses, big windfalls, investment fluctuations, even interest rates can and should affect your plans.

That’s not to say you need to spend every waking moment thinking about this tough subject.

But it could help to talk with a professional who specializes in these deeply personal matters.

You Don’t Have to Go It Alone

Effective planning should not be blindly outsourced.

Understanding the basic structure of your plan allows you to ask better questions, recognize gaps and ensure that your wishes can effectively get carried out. 

The goal is not complexity — it is intentionality.

If you have not reviewed your estate plan recently — or if you are unsure how your assets would be handled today — this is an appropriate time to start asking questions. 

A thoughtful review now can prevent confusion, expense and conflict later.

Estate Planning Is an Act of Care & Responsibility

If you do not decide how your estate is handled, the legal system will decide for you — and it will not do so with your family’s best interests in mind.

If you have questions about your estate plan, or would like to set one up, my office is available to help you review your current documents and discuss next steps. 

Call 888-892-1102 and reference that you heard about my firm through Weiss Ratings Daily.

Live Well, Leave a Legacy!

David T. Phillips, CEO
Estate Planning Specialists