Reviewing Your Estate Plan

When Should I Update My Estate Plan?
A common misconception in estate planning is that you sign the documents once, tuck them in a drawer, and you’re done. In reality, your estate plan is a snapshot of your life at a moment in time. As your life changes, your plan should keep up.
So how do you know when it’s time to revisit yours? Here are the most common signals.

Major Life Events
Certain milestones almost always call for a review:
• Marriage or remarriage. A new spouse changes the picture significantly, especially in a community property state like Texas.
• Divorce. Texas law automatically revokes certain provisions in favor of a former spouse upon divorce, but you should never rely on that alone. A full review ensures nothing is left to your ex by accident and that your fiduciary appointments still make sense.
• The birth or adoption of a child or grandchild. You may want to add beneficiaries, name a guardian, or create or adjust a trust.
• A death in the family, particularly the death of a spouse, beneficiary, executor, trustee, or named guardian.
• A child reaching adulthood, which may change who you’d trust to serve as executor, agent, or trustee.

Financial and Property Changes
• A significant change in your assets, such as buying or selling a business or real estate, or a major increase or decrease in your net worth.
• Buying property in another state, which can introduce additional considerations.
• Changes to retirement accounts or life insurance. Remember that these pass by beneficiary designation if one is named. Keeping your will current does no good if an old beneficiary form still names the wrong person. Review those designations regularly.

You Moved to Texas From Another State
If you created your estate plan elsewhere and then moved to Texas, have it reviewed. Your documents may still be valid, but Texas has its own rules, and some valuable Texas-specific provisions may be missing.

Changes in the Law
Tax laws and estate laws change over time. A plan that was ideal several years ago may no longer be the most effective approach today. Periodic reviews help ensure your plan still does what you intend under current law.

A Good Rule of Thumb
Even if nothing major has happened, it’s wise to review your estate plan every two to three years. Think of it almost like a checkup, often everything is fine, but it’s worth confirming.

One Important Caution
When you decide something needs to change, resist the urge to fix it yourself. Crossing out language, writing in the margins, or stapling notes to your will can create confusion or even invalidate parts of your documents. Changes should be made following legal requirements, so your wishes hold up.

Conclusion
Your estate plan should grow and change along with your life. Reviewing it after major events, and every few years in between, helps ensure it still reflects your wishes.