Creating your will is a major accomplishment — but it's not a one-and-done task. Life changes, and your estate plan should change with it. Here are the five most common life events that warrant a review.
1. Marriage or Divorce
Getting married changes everything about your estate plan. In Texas and California (both community property states), marriage creates automatic rights for your spouse that may conflict with your existing plan. You'll want to update your will and beneficiary designations, and consider whether a trust makes sense for your new household.
Divorce has the opposite effect — but in many states, a divorce doesn't automatically remove your former spouse from your estate plan. If your will names your ex as a beneficiary, you need to update it explicitly.
What to do: After any change in marital status, schedule an estate plan review.
2. Birth or Adoption of a Child
Having a child raises immediate questions your current plan may not address: Who is the guardian? How will assets be managed until your child reaches adulthood? A will that predates your children may distribute assets in ways that leave your child unprotected.
What to do: Update your will to name a guardian for minor children, and establish a trust to hold any inheritance until your children reach the age(s) you specify.
3. Death of a Beneficiary or Named Fiduciary
If a person named in your will — a beneficiary, executor, or trustee — has died, you need to update your documents. An executor who predeceases you cannot serve; a deceased beneficiary's share may pass in unexpected ways.
What to do: Review named individuals in your estate plan any time you learn of a death that affects your documents.
4. Significant Changes in Assets
If your financial situation has changed substantially — a major inheritance, the sale of a business, the purchase of real estate in another state, a dramatic increase or decrease in asset value — your current plan may no longer reflect your actual estate.
This is particularly relevant if you've acquired real property in a new state. A revocable living trust may now make much more sense than it did when your plan was created.
What to do: Review your plan after any significant change in net worth or asset composition.
5. Moving to a New State
Estate planning law is state law. If you've moved from Texas to California (or vice versa), your existing documents may still be valid — but they may not be optimal for your new state's rules. California's complex probate process, for example, makes trusts significantly more valuable for California residents than for Texas residents.
What to do: After any interstate move, have your estate plan reviewed by an attorney licensed in your new state.
A good rule of thumb: review your estate plan every three to five years, even if none of these events has occurred. Laws change, relationships evolve, and what was right for your family five years ago may not be right today.
*This article is for informational purposes only and does not constitute legal advice.*
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