Reviewing Your Estate Plan After the Death of a Loved One

Nov 8

The death of a loved one is never easy. Regardless of your relationship with the deceased, you need space and time to process and grieve your loss. The loss of a loved one brings immense emotional strain, and during such times, reviewing your estate plan may feel overwhelming. However, this period can also prompt us to ensure our wishes are up-to-date and reflect the current needs of our family. Once you have had time to cope with all that has happened, you should consider updating your estate plan in light of your loved one’s death.

In Texas, estate planning after a significant life event like the death of a family member is essential for those looking to secure their loved one’s future. At Reyna Law, we understand how crucial it is to support you in these times, providing expertise and empathy. Here’s a guide to navigating the process and safeguarding your family’s best interests.

Why Reviewing Your Estate Plan Matters After a Loved One’s Death

When a close family member passes, it’s natural to experience a shift in your priorities, especially regarding who will inherit, who you trust as decision-makers, and how you wish to provide for your loved ones. These changes can have significant impacts, especially in Texas, where unique laws and probate processes influence inheritance, asset distribution, and tax considerations.

Regular estate plan reviews are critical. Revisiting your estate plan after the death of a loved one isn’t just about safeguarding your assets—it’s about protecting the legacy you’ll leave behind for those you care about. Many individuals mistakenly believe that estate plans are a “set it and forget it” deal. In reality, they require ongoing attention to reflect life’s changes.

Key Steps in Reviewing Your Estate Plan

Although your estate plan primarily focuses on what will happen if you become incapacitated (unable to make or communicate your wishes) or die, the death of a loved one can have a significant impact on your planning. If you have an estate plan, some of the important things you need to do when a loved one dies are the following:

1. Review and Update Beneficiary Designations

Losing someone close can also shift how you want to distribute your assets. Start by reviewing the beneficiaries on all your financial accounts, such as bank accounts, retirement plans, life insurance policies, and investment accounts.

Often, people forget that these assets bypass a will or trust and pass directly to the named beneficiary. If a primary beneficiary has passed away, you’ll want to name a new one to avoid confusion and ensure smooth transitions. Otherwise, any gift to a now-deceased beneficiary will be canceled. The property or accounts meant for them will instead go to your general estate and be distributed according to the remaining terms. This can be an issue if your beneficiary had loved ones—like a spouse or children—whom you’d prefer to receive their share. Updating your plan ensures that your assets go exactly where you intend.

2. Evaluate Your Will and Trusts

One of the main objectives of establishing a will or revocable living trust is to create a plan for what will happen to the things you own at your death. In your estate plan, you probably appointed several people to make decisions for you if you become incapacitated, such as a successor trustee, personal representative, or executor.

If your loved one who passed away held one of these roles, check if you listed a backup. If not, you’ll need to update the document to name a new first choice and an alternate. If a backup was already named, you should update the document to make the backup your primary choice and remove the deceased loved one’s name to avoid confusion. If your deceased loved one held any of these positions, and there is no named backup at the time of your death, the probate court will implement Texas laws to determine who is next in line to serve as personal representative.

3. Update Powers of Attorney

If the person you previously designated has passed, or if your relationship or trust level has changed, naming a new agent will prevent future complications. The agent should be someone you deeply trust, and who shares your understanding of what’s best for you and your family.

Financial Power of Attorney:
With a financial power of attorney, you designate someone to manage your property and finances, such as communicating with your mortgage company, paying bills, or accessing your bank funds for your care. If this person passes away and no backup is named, there’s no one authorized to step in. Without a financial power of attorney, your loved ones would have to go to court to have someone appointed by a judge, who would likely choose a spouse or close relative. This process can be slow, costly, and exposes private family matters during an already stressful time.

Medical Power of Attorney:
A medical power of attorney enables a chosen agent to make medical decisions on your behalf if you’re unable to do so. However, if you become incapacitated or die without a named agent, your family would need to go to court for a guardian appointment. The judge will follow Texas guidelines, but the selected person might not reflect your personal preferences or understand your specific medical wishes.

4. Reassess Guardianship Provisions

If your estate plan includes naming guardians for your minor children, it’s essential to reconsider this after the loss of a loved one. If the loved one you have selected has passed away, it is imperative that you update this selection. While your circumstances may vary, if your chosen guardian is unable to serve for any reason, and you have no alternate guardian nominated, the probate court will determine who will raise your child.

5. Reevaluate Your Digital Asset

In our digital age, online accounts, social media profiles, and digital banking credentials have become essential parts of estate planning. If your loved one’s passing affected how you handle these digital assets, it may be time to assign a digital executor who can manage and, if necessary, close these accounts according to your wishes.

Emotional Healing and Financial Security Through Thoughtful Estate Plan

We understand that you are grieving the loss of a loved one. When you are ready, we are here to help you take the next step in your estate planning journey, whether you are starting, completing, or updating your estate plan.

This process also offers a chance for healing, as you take proactive steps to create a secure future. By organizing your financial affairs, you’re actively caring for your family’s emotional and financial well-being, offering them a priceless gift in an uncertain world.

Secure Your Family’s Future with Reyna Law

Losing someone close is never easy, and the last thing you want during this time is to worry about legal complications. At Reyna Law, we’re here to make this process as seamless as possible. With extensive knowledge of Texas estate law, we’ll walk you through every step of updating your estate plan, ensuring it’s tailored to your family’s unique needs and values.

Contact us today to schedule a consultation. Your family deserves the peace of mind that comes with knowing your wishes are clear and that your assets are secure. Let’s work together to protect what matters most—your family and your legacy.

BOOK A PEACE OF MIND CONSULTATION