Creating a comprehensive estate plan can become a substantial endeavor for individuals and families in Forney, depending on the complexity of their finances and personal circumstances. However, one of the biggest estate planning mistakes you could make includes not reviewing and updating your last will and testament periodically throughout your life. People should review their estate plans every few years and after significant life events, as their preferences, goals, and family circumstances can change with certain events or over time.
Life Events That Should Trigger You to Review Your Will
Examples of significant life events that should prompt you to review your will and other estate planning documents include:
- Marriage (especially second or subsequent marriages)
- Divorce or separation
- The birth or adoption of children or grandchildren
- Death of named beneficiaries, executors, trustees, guardians, or attorneys-in-fact
- Significant changes in assets, such as buying or selling a home, starting or selling a business, receiving a substantial inheritance, or experiencing significant increases in income
- Acquiring assets in another state or country
- Moving to or from Texas
What Should You Review?
Any review of your estate plan after significant life events or after a substantial amount of time has passed should involve checking certain aspects of the plan to ensure that they continue to reflect your current circumstances and wishes, including:
- Beneficiary designations in the will, financial/retirement accounts, and life insurance policies
- Appointed executors, trustees, guardians, attorneys-in-fact, and their alternates/successors
- Bequests of specific assets in the will
- Instructions or guidance in healthcare directives
The Consequences of Not Updating Your Will
Leaving your will unchanged after major life events can have serious unintended consequences. Your will and other estate planning documents may no longer reflect your present wishes, preferences, or family circumstances. Examples of potential consequences from not reviewing your estate plan after life events include:
- New assets not addressed by your will could pass to unintended heirs through Texas intestacy laws
- An ex-spouse could remain a beneficiary of your will, life insurance policy, or retirement account
- New children or grandchildren could become disinherited (especially if your estate planning documents list the names of your children or grandchildren)
- The named executor in your will may have passed away or have become unwilling or unable to serve, requiring the appointment of another person to serve as administrator after your death.
How Do You Update a Will in Texas?
When you need to update your will after a major life event, you can amend it in two ways. First, you could execute a codicil – a separate document attached to the will that describes alterations to specific provisions in the will. Alternatively, you could execute a new will with the changes you want, which expressly revokes and supersedes all prior wills you have created. You could use a codicil if you need to make one or a few minor changes. However, if you need to make substantial changes or if changes pile up over the years, you may want to create a new will that incorporates all the changes and avoids the need to refer back and forth between the original will and one or more codicils.
Creating a codicil or a new will requires the same process under Texas law as creating the original will.
Contact Our Firm Today for Help Reviewing Your Estate Plan After Major Life Events
After you’ve gone through an event that has changed your finances or your family, you should review your estate plan to check for any necessary modifications. Contact Guest & Gray today for a free consultation with a Forney estate planning attorney to learn more about the importance of reviewing and updating your estate plan throughout your life and for experienced advice when you need to make changes after significant life events alter your needs, preferences, and wishes.
