Estate planning is a crucial step for protecting your assets and ensuring your wishes are honored after you’re gone. Whether you’re a longtime resident of Rockville, MD, or new to the area, creating a solid estate plan can give you peace of mind and security for your loved ones.
However, many people unknowingly make mistakes that can lead to complications, delays, or even legal battles down the road. To help you avoid common pitfalls, here are the top 5 estate planning mistakes to watch out for in Rockville, Maryland.
1. Failing to Update Your Estate Plan Regularly
Life changes fast — marriages, divorces, births, deaths, new assets, or relocations can all affect your estate plan. One of the biggest mistakes is setting up your will or trust once and then forgetting about it.
In Maryland, failing to update your plan can mean your assets end up in the wrong hands or your wishes aren’t carried out as intended.
How to avoid this:
- Review your estate plan every 3-5 years or after major life events.
- Consult a Rockville estate planning attorney to ensure your documents comply with current Maryland laws.
2. Not Having a Comprehensive Plan
Some people think a simple will is enough, but estate planning involves much more. Without addressing all aspects — including powers of attorney, health care directives, and trusts — you risk leaving gaps that create confusion or expose your estate to unnecessary taxes and probate delays.
Maryland’s probate process can be time-consuming and costly, so thorough planning is essential.
How to avoid this:
- Create a comprehensive estate plan that includes:
- A valid will
- Durable power of attorney for finances
- Health care power of attorney and living will
- Trusts, if appropriate for your situation
- Work with a knowledgeable attorney familiar with Maryland estate laws.
3. Ignoring the Importance of Beneficiary Designations
Many assets like retirement accounts, life insurance policies, and payable-on-death bank accounts bypass wills and trusts and transfer directly to named beneficiaries. Neglecting to update these designations can lead to unintended recipients receiving your assets.
For example, if you divorced but forgot to change the beneficiary on your life insurance, your ex-spouse might inherit the policy’s proceeds.
How to avoid this:
- Regularly review and update beneficiary designations on all accounts and policies.
- Coordinate beneficiary choices with your overall estate plan to avoid conflicts.
4. Overlooking the Impact of Taxes
Maryland imposes an estate tax on estates valued over a certain threshold, which is currently $5 million as of 2025. Additionally, there’s a federal estate tax that might apply depending on your total assets.
Without proper planning, your heirs could face a hefty tax burden that reduces the inheritance.
How to avoid this:
- Work with an estate planning attorney and financial advisor to implement strategies that minimize estate and inheritance taxes.
- Consider tools like trusts or gifting strategies to reduce taxable estate value.
5. Failing to Plan for Incapacity
Estate planning isn’t only about what happens after death. It’s also about preparing for situations where you might become incapacitated and unable to make decisions for yourself.
Without durable powers of attorney and health care directives in place, your family might have to go through court proceedings to gain control over your finances or medical decisions.
How to avoid this:
- Establish a durable power of attorney for finances and a health care power of attorney.
- Draft an advance health care directive or living will that states your preferences for medical treatment.
Final Thoughts
Avoiding these common estate planning mistakes can save your loved ones time, stress, and expense down the road. Estate planning in Rockville, MD requires careful attention to detail and an understanding of local laws, so partnering with an experienced estate planning attorney is essential.
If you haven’t reviewed your estate plan recently or don’t have one yet, now is the perfect time to start. Protect your assets, your wishes, and most importantly, your family’s future with a well-crafted estate plan tailored to your unique situation.
If you’d like assistance with creating or updating your estate plan in Rockville, MD, please contact our office for a consultation. We recommend Estate planning in Rockville MD.
