Do I Need to Update My Estate Plan Every Year?
Estate planning can be an uncomfortable topic for many people. It involves discussing death, and many people delay this conversation. They think they will get around to it someday and that someday never comes. As a result, half of all people die without a will in place.
When people do decide to get an estate plan, they look for shortcuts. They want to hurry up and get it over with. The truth is that with an estate plan, you are never done. You need to get the details right, or else your estate plan may not work as intended. Your assets may go to the wrong person. Your assets may not even be included in your will or trust.
Because the details are so important, you need to update your estate plan on a regular basis. But how much is enough? Do you have to update your estate plan annually?
It depends on who you talk to. Some experts say to do it every year. Others say every three to five years is good. In general, you should get your estate plan updated every time you experience a life event. Doing so will avoid any confusion upon your passing and help your family avoid conflict and court. Your needs and the needs of your family will change as time passes.
Major Life Events
Life events that require an updated estate plan include:
- Birth or adoption of a child or grandchild
- Marriage or divorce
- Illness or disability of your spouse
- When a child or grandchild becomes an adult
- When a child or grandchild needs educational funding
- Changes in your number of dependents, including adults
- Death of the guardian named in your will for minor children
- Change in your life insurance coverage
- Purchasing a home or other large asset
- Large increases or decreases in the value of assets, such as investments
- Receipt of a large inheritance or gift
- If any family member passes away, becomes ill, or becomes disabled
- Death or change in circumstance of your executor or trustee
- Career changes, especially starting or ending a business
Tax laws are something else that you need to consider. Each state has its own laws, so if you move to a new state, you need to follow its tax laws. But even if you stay put, tax laws could still change. A good estate attorney will inform you of any changes.
A good estate plan can also prepare you for possible incapacitation. Even if you do not die, you can have a financial power of attorney to help with your financial affairs if you are unable to manage them yourself. A power of attorney for health care can help you make healthcare decisions on your behalf.
Contact a Texas Estate Planning Lawyer Today
Estate plans are not a one-and-done type of deal. You need to update your plan regularly, although not necessarily every year.
Getting help with your estate planning tasks with help from Texas estate planning lawyer John Powell III, P.C. We understand the process can be complex, but we can help you make the right decisions. Schedule a consultation by filling out the online form or calling (281) 747-6346.