The Importance of Regularly Updating Your Estate Plan
Estate planning is essential to make sure that your intentions are honored, your assets are protected, and your loved ones are cared for as you wish. However, it is often viewed as a one-time task, checked off after the drafting of a will or the creation of a trust. However, a truly effective estate plan isn’t static—it must evolve with life’s many changes.
At The Applegate Firm PLLC, in Maumelle, we provide comprehensive estate planning services throughout Arkansas. Our highly knowledgeable attorneys are here to help you determine the best estate planning option for your needs. Located in Maumelle, Arkansas, we also serve surrounding areas, including Pulaski County, Faulkner County, Saline County, and Lonoke County.
Why Regular Updates Are Necessary
Typical components of an estate plan include a Last Will and Testament, revocable or irrevocable trusts, a Durable Power of Attorney, a Healthcare Power of Attorney, a Living Will, beneficiary designations, and guardianship designations for minor children.
While many of these documents are foundational, their relevance and accuracy can change over time due to life events, legislative changes, or financial developments.
Life Changes
Perhaps the most common reason to update your estate plan is due to major life changes, which may include:
Marriage or divorce: In Arkansas, marriage revokes a will made before the union unless it expressly states otherwise. Divorce, on the other hand, automatically revokes any provisions related to the former spouse, including roles as executor or beneficiary. However, this revocation only takes place once the divorce is final. Failure to update your documents can result in unintended consequences, such as an ex-spouse inheriting assets or being appointed to make critical decisions.
Birth or adoption of children: You'll likely want to name a guardian for the child in your will and adjust financial provisions. In Arkansas, not providing for a child born or adopted after a will is created can lead to that child claiming a share of the estate as a pretermitted heir, potentially disrupting your intended distributions.
Death of a beneficiary or executor: If someone named in your estate plan dies, you must revise the documents to appoint new individuals or update distribution plans. Arkansas law doesn’t automatically reassign these roles, so failure to update could create confusion or necessitate court intervention.
Significant changes in finances: A dramatic change in your financial situation—such as inheriting wealth, starting a business, or facing substantial debt—can necessitate estate plan updates. The tools and strategies appropriate for a modest estate may not be suitable for a larger or more intricate financial portfolio.
Changes in Arkansas and Federal Law
Laws at both the federal and Arkansas levels regarding estates and taxes can change over time. As a result, an estate plan that was effective a few years ago may now be outdated or even counterproductive.
Estate and gift tax thresholds: While Arkansas doesn’t currently have a state estate tax or inheritance tax, federal estate tax exemptions and rates change frequently. As of 2025, the federal estate tax exemption is $13.61 million per person, but this figure is scheduled to decrease significantly after 2025 unless Congress intervenes.
Retirement account rules (SECURE Act): The SECURE Act, enacted in 2020 and further refined in 2022 (SECURE 2.0), changed how inherited IRAs are treated. Most non-spouse beneficiaries must now withdraw the entire balance within 10 years, eliminating the “stretch IRA” strategy. If your estate plan includes trusts tied to old IRA rules, it could cause tax inefficiencies or even disinherit heirs unintentionally.
Medicaid planning in Arkansas: For those considering long-term care, Arkansas has specific rules related to Medicaid eligibility and asset transfers. Estate planning strategies, such as irrevocable trusts or asset protection techniques, should be reviewed regularly to comply with changing Medicaid regulations while still meeting your goals.
These evolving legal and financial structures underscore the critical need for periodic review and adjustment of your estate plan to make sure it remains aligned with your goals and current regulations.
Benefits of Updating Your Estate Plan
Failing to update your estate plan can result in assets being distributed in ways you no longer intend. This may not only frustrate your wishes but can also lead to legal disputes among heirs.
Ambiguities or outdated designations in estate plans are common causes of family conflict. By regularly reviewing your documents, you confirm that your directions are clear and that you’ve accounted for new family members or changes in relationships.
In Arkansas, if you have minor children and don’t name a guardian in your will, the courts will decide who cares for them. An outdated plan might list someone no longer suitable or available. Keeping this information current protects your children's well-being.
As you age, you may want to change who has the authority to make decisions on your behalf. For instance, you might need to update your healthcare or durable powers of attorney to reflect trusted individuals or remove someone no longer suitable.
Well-maintained estate plans make probate easier and more efficient. In Arkansas, while small estates (less than $100,000, excluding homestead and exempt property) may be administered through a simplified process, larger estates benefit significantly from clear, updated documents.
Common Estate Planning Tools in Arkansas That Require Updates
An estate plan isn't a one-time setup; it requires regular review and updates to remain effective and reflect your current circumstances.
Wills
Your will outlines how your assets will be distributed and names guardians for minor children. Key triggers for updating include marriage, divorce, births, deaths, and acquiring new assets.
Revocable Living Trusts
A revocable trust can help avoid probate and manage assets during incapacity. However, if you acquire new property or change beneficiaries, you'll need to revise your trust and make sure that new assets are properly titled in the trust’s name.
Powers of Attorney
Your chosen agent under a durable power of attorney should reflect your current trust and relationships. It’s also wise to review the scope of authority granted.
Healthcare Directive (Advance Directive or Living Will)
Confirm your healthcare preferences are still current and that your chosen healthcare proxy remains appropriate.
Beneficiary Designations
Assets like life insurance, retirement accounts, and payable-on-death bank accounts pass outside your will or trust. Regularly confirm that beneficiary designations align with your overall plan.
Regularly reviewing and updating these key estate planning tools is essential. Life changes, new acquisitions, and evolving relationships all necessitate adjustments to make sure that your estate plan accurately reflects your intentions and continues to protect your interests and your loved ones.
Consequences of Neglect
Failing to update your estate plan can have dire consequences:
Probate delays: Outdated documents can prolong the probate process.
Unintended beneficiaries: Assets may go to people you no longer want to benefit.
Family conflict: Ambiguities in your plan can lead to litigation.
Loss of control: Courts may appoint someone you wouldn’t have chosen to manage your affairs.
In Arkansas, probate can be a fairly simple process with proper planning. However, without adequate preparation, it may require significant court involvement, creating an emotional and logistical burden for your family.
An estate plan is a living document that should grow and change alongside your life. In Arkansas, regular reviews are essential to confirm your estate plan remains compliant with evolving laws and reflective of your current wishes.
Life changes, legal developments, and financial shifts can all significantly impact how your estate is handled upon your incapacity or death.
Contact Us Today
With an up-to-date estate plan, you protect your loved ones, reduce family conflict, and confirm your legacy is preserved according to your intentions. Consulting with our Arkansas-based estate planning attorneys at regular intervals will help you keep your plan current. The Applegate Firm PLLC serves clients in Maumelle, Pulaski County, Faulkner County, Saline County, and Lonoke County, Arkansas. Contact us today for a consultation.