One of the only certain things in life is change. When you first created your estate plan, it was tailored to the circumstance of your life at that time. If you take a look at what has happened in your life since then, it is easy to appreciate why you may need to review and update your Texas estate plan.
Here are three instances when you need to update your estate plan
1. When your marital status has changed
Whether you have recently married or divorced, it is important to think about what will happen to your estate in light of your changed status. When you get married, you and your new spouse may both need to update your estate plans to include each other. Similarly, if you end up getting a divorce, it is crucial that you review your estate plan to prevent your ex-spouse from making crucial decisions about your health if you’re incapacitated or your estate when you are gone.
2. When there is a new addition to the family
Whether it is a child, a grandchild, or an in-law, a new addition in the family will likely impact how you wish to distribute your assets. If you are dealing with a newborn, it is important that you designate a guardian in your estate plan who will take care of your child should something happen to you and your spouse.
3. When there are changes in federal and state laws
Laws change from time to time, and these changes can greatly affect your estate plan. For instance, the SECURE Act requires holders of 401 (K)s and IRAs to update their estate plans to address the impact of this legislation on inherited accounts.
It is a good idea to get in the habit of updating your estate plan as often as possible to reflect the changes in your life. Besides making your plan valid and in tandem with existing laws, updating your estate plan will also give you peace of mind knowing that your estate will be managed in accordance with your wishes when you are no longer around to make crucial decisions.