The Importance of Regularly Updating Your Estate Plan

When it comes to estate planning, the most carefully crafted documents can become ineffective—or even harmful—if not reviewed and updated as life circumstances change. A powerful reminder of this comes from the case of Procter & Gamble v. Estate of Jeffrey Rolison, which illustrates how a simple oversight can lead to unintended and irreversible consequences.

Understanding the Case Background

Jeffrey Rolison was a longtime employee of Procter & Gamble. He participated in their retirement savings plan and designated a specific individual as the beneficiary of that plan. However, years later, Rolison experienced major life changes, including shifts in his personal relationships and family dynamics. Unfortunately, he never updated his beneficiary designation with his employer.

When he passed away, the retirement plan benefits were still set to go to the individual he had named many years before. Despite compelling arguments from his estate that this was no longer his intended beneficiary, the court ruled that Procter & Gamble was obligated to distribute the funds based on the written designation on file. In other words, the outdated form controlled the outcome—not Rolison’s probable wishes.

The Legal Takeaway

This case underscores a critical truth: beneficiary designations are legally binding documents that override wills and trusts. If they are not updated to reflect your current intent, the law will enforce them as written—even when the result seems unfair or contrary to your known preferences.

What This Means for You

Outdated documents can undermine your entire estate plan. Here are a few practical steps you can take to protect your legacy:

• Review your estate plan every 2–3 years or after major life events such as marriage, divorce, birth of a child or grandchild, or significant financial changes.

• Update beneficiary designations on retirement accounts, life insurance, and other payable-on-death (POD) assets. These often fall outside the scope of your will or trust.

• Coordinate your estate plan so that your beneficiary designations align with your will and trust documents to avoid conflict or confusion.

• Keep copies and records of all updates, and inform your attorney of any changes so your full plan remains consistent.

  
  

The Impact of Life Changes on Estate Planning

Life changes can significantly affect your estate plan. Major events like marriage, divorce, or the birth of a child can alter your priorities and relationships. It is crucial to reflect these changes in your estate planning documents.

For example, if you get married, you may want to include your spouse as a beneficiary. Conversely, if you go through a divorce, you might wish to remove your ex-spouse from your beneficiary designations. Failing to make these updates can lead to unintended consequences, as seen in the case of Rolison.

Why Regular Reviews Matter

Regular reviews of your estate plan are essential. They ensure that your documents reflect your current wishes and circumstances. A plan that is not regularly updated can lead to confusion and disputes among your heirs.

Additionally, laws regarding estate planning can change. Staying informed about these changes can help you make necessary adjustments to your plan.

Need Help Reviewing Your Estate Plan?

At Chad Anderson Law Firm, we help clients across North Dakota ensure that their estate plans remain accurate, effective, and legally sound. If it’s been a few years since your documents were last reviewed—or if you’ve recently experienced a major life change—this is the perfect time to revisit your plan.

Call us at (701) 214-5277 or contact us online to schedule a consultation. Don’t let outdated paperwork decide your legacy. Let us help you keep your plan—and your intentions—on track.

Conclusion

In conclusion, the importance of regularly updating your estate plan cannot be overstated. Life is full of changes, and your estate plan should reflect those changes. By taking proactive steps, you can ensure that your wishes are honored and that your loved ones are protected. Remember, your estate plan is not just a set of documents; it is a reflection of your values and intentions.