The world we’re living in today is very different from the one most estate plans were built for before the pandemic. For many, the last six years have reshaped the way we think about our health and how our affairs will be managed if we become incapacitated or die prematurely. These once abstract possibilities started to become lived realities, leading to a surge in estate planning.
A 2022 report from Caring.com found Americans who survived a serious case of COVID-19 were 66% more likely to get involved in estate planning. As for those who witnessed loved ones battling the illness, 41% have created a will, compared to 29% of those who’ve never had first or second-hand experience with COVID-19. However, the momentum didn’t last. According to Caring.com, only 32% of Americans had an estate plan in 2024; a 6% decrease from 2023 and the first decline in estate planning rates since 2020. While having a plan in place is better than having nothing at all, what matters most is whether the estate plan you have aligns with the life you’re living today.
During the pandemic, many estate plans were created in an unprecedented time marked by fear, urgency and lockdown-related limitations. Because of these conditions, the goal for many was just to get something set in place. This caused many necessary conversations with beneficiaries to be shortened, roles may have been assigned based on convenience rather than suitability, and the long-term implications of certain decisions may not have been fully explored. Depending on the circumstances a family was dealing with at that time, pandemic-era estate plans may reflect only temporary health concerns, financial uncertainty that has since stabilized or shifted, or changed family dynamics. This doesn’t necessarily mean the plan was drafted incorrectly or is ‘wrong.’ It may just mean the plan no longer reflects the life you currently live because time has passed and things have changed.
When it comes to estate planning, many people believe that once they’ve signed the documents, they can set it and forget it. However, estate plans only work when documents and assets remain aligned over time. When it comes to certain tools, like trusts, assets must be properly titled and beneficiary designations need to be coordinated. An asset can follow the instructions of the trust only when it is owned by the trust or legally directed to it. Therefore, if an asset is still titled by an individual’s name, it may bypass the trust, require probate or get distributed to heirs different than those intended. Trusts can only control what they directly own.
As for beneficiary designations, many beneficiary forms act independently and don’t automatically update when plans are created. Some assets are distributed without a will or trust in place at all. For example, insurance policies and retirement accounts are transferred to the beneficiary named on the institution’s beneficiary form. These designations will override estate documents if they conflict. Therefore, if beneficiary designations aren’t reviewed, assets can go to the wrong heir, distributions may not be even, and planning goals are undermined. So, how often should estate plans be reviewed?
Estate planning serves you best when it’s treated as routine maintenance, not a one-and-done task. A good rule of thumb is to review your plan every five years, or when major life events occur such as marriage, divorce, the birth of children, retirement, significant health changes, or major financial shifts. It’s important to remember that reviewing the plan doesn’t mean it needs to be rewritten entirely. In most cases, small updates, clarifications, or even a simple confirmation that the plan is still reflective of your life are all that’s needed. Taking a proactive approach like this gives families the space to make thoughtful, careful decisions rather than acting on impulse during a crisis.
The past several years have illustrated how quickly circumstances can change. Regardless of when they were created, estate plans work best when they’re reviewed and maintained on a regular basis. Revisiting your plan isn’t about starting over every time something changes, or correcting prior ‘mistakes.’ It’s about ensuring that if something were to happen to you right now, your affairs would be handled according to your wishes.
