Life Happens: Update Your Estate Plan

 
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Estate planning isn't something you do once and forget about—it's an ongoing process. Life comes at us fast. As your life evolves, so do your goals and priorities. That's why reviewing and updating your estate plan regularly is essential to ensure it aligns with your current situation and wishes. Major life events, such as marriage, starting a family, or losing a loved one, are key moments when updating your estate plan becomes especially important. These milestones remind you to revisit your plan and make any necessary adjustments.

For parents with minor children, an estate plan isn't just a good idea—it's essential. And while it may seem daunting or even uncomfortable to think about, ensuring your family is protected, no matter what happens, should be at the top of your to-do list. In this article, we'll discuss what you should consider and why updating your estate plan is one of the most important decisions you'll make as a parent.


Common Reasons to Update Your Estate Planning Documents

When it's time to review your estate plan, your goal is to ensure your intentions remain intact, the right individuals are included, and any significant life changes are accurately reflected. It’s essential to give this process serious thought and consideration.

Family dynamics can change unexpectedly, and when they do, your estate plan should be updated to reflect these shifts. Consider updating your will in the following situations:

1. Marriage and Divorce

One of the most common reasons to update your will is when you gain or lose a spouse. You’ll need to adjust your estate plan to reflect changes in family dynamics and redistribute assets to other beneficiaries. After getting married, it's important to include your new spouse in your will, making them a primary beneficiary and addressing any new legal and financial responsibilities.

Following a divorce, it's crucial to promptly revise your will to remove your ex-spouse as a beneficiary or executor, ensuring they no longer have access to your assets or control over your estate, in line with your current wishes. It’s also important to consider child custody and support arrangements, as well as property division.

You don’t need to be legally married to revise your estate plan. In Texas, without a legally recognized relationship or a clear mention in your will, your partner may not receive anything.

2. Birth or Adoption of Children

The addition of a child, either through birth or adoption, brings joy and new responsibilities. This is the perfect time to ensure your estate plan supports the next generation. Be sure to update your plan to designate a guardian for your minor children and consider setting up trusts to secure their financial future. Also, remember to include all children—biological, adopted, or stepchildren—where appropriate. In Texas, stepchildren may not automatically inherit if you die without a will.

3. Changes in Financial Situation

Significant financial changes, such as receiving an inheritance, starting a business, or experiencing financial hardship, are strong reasons to review your estate plan. You may need to adjust asset distribution, revise charitable donations, or explore tax-saving strategies to ensure your financial wishes are honored.

4. Relocation or Acquisition of Property

If you’ve moved to a new state or acquired additional property, updating your estate plan is essential. Different states have varying laws that can impact your estate, so aligning your plan with state law is critical.  If you've recently relocated to Texas, it's essential to update your estate plan to comply with Texas-specific laws. What worked in another state might not protect you here. Moreover, if you’ve purchased new assets like real estate, art collections, or investments, these need to be reflected in your documents.

5. Changes in Health

A serious illness or diagnosis of a chronic condition is a reminder to update your estate plan. This allows you to set up healthcare directives, designate healthcare proxies, and arrange for long-term care. These updates ensure that your medical and financial decisions align with your wishes.

Changes in health don’t just apply to you. If any key individuals in your plan, such as your executor, beneficiaries, or guardian, experience health changes, your estate plan should be revised accordingly.  If a beneficiary or executor named in your will passes away, it's essential to update your will to appoint new individuals in their place. For beneficiaries, you'll need to choose someone new to inherit or adjust the distribution of assets among the remaining beneficiaries.

6. Changes in Relationships

Beyond marriage and divorce, other significant relationship changes may call for estate plan updates. This could include the death of a spouse, estrangement from a family member, or the formation of new meaningful relationships. Reassessing beneficiary designations, powers of attorney, and healthcare proxies is important to ensure they match your current relationships.

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How Often Should You Review Your Estate Plan?

Even if no major changes have occurred, it’s still wise to periodically review your estate plan. Over time, laws can change, or you may have a fresh perspective on your legacy and priorities. If you haven’t looked at your estate plan in years, now might be the perfect time to ensure everything aligns with your intentions.

Regularly working with an estate planning attorney, like Reyna Law, can help keep your plan up to date. Also, remember to review beneficiaries for accounts like retirement or life insurance policies, as these are separate from your will and estate documents.

What Happens If You Don’t Update Your Plan?

Texas law has specific guidelines for estate distribution if someone passes away without a valid will or estate plan. The court may determine who manages your children's inheritance and who becomes their guardian, and the outcome might not reflect your desires. Without a clear, updated estate plan, you could leave your family in a legal mess—one that's time-consuming, expensive, and emotionally draining.

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Life Happens—Take Action Now

You’ve already taken the first step by thinking about your family’s future. But thinking isn't enough—you need to take action. Life is unpredictable, and while none of us like to imagine the worst, planning for it ensures that your family is cared for, no matter what happens. At Reyna Law, you’re not just hiring an attorney—you’re partnering with someone who cares about your family’s future. We work with you every step of the way to ensure your estate plan meets your needs and gives you peace of mind.

Ready to get your affairs in order? We make the process simple and convenient! Start by booking a Peace of Mind Planning Session HERE. We’ll answer your questions, present your options, and discuss our unique flat fee pricing. Then, if we decide we’re a good fit to work together, we’ll take the next steps. Mention this blog and we’ll waive the $450 session fee!

 
 
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Professional estate planning law firm serving Austin, Dripping Springs, and Central Texas

PHONE: 512.777.1486
EMAIL: josh@reynalaw.com

13341 W US Hwy 290, Bldg. 2
Austin, TX 78737

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Why Every Parent in Texas Needs an Estate Plan

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Blended Family? Don’t Let Your Legacy Become a Blended Mess!