Many Texas residents create an estate plan to outline what they would like to happen to their assets upon passing. Many people assume once they create their estate plan, they do not need to look at it again. However, there are certain times it is a good time to make sure the estate plan is up to date.
Forbes mentions seven reasons to evaluate an estate plan. One big reason to relook at the estate plan is when family changes happen. Perhaps a new member joins the family, a divorce happens or someone passes away requiring changes to the estate plan.
There are times when the trustee or executor needs changing in order for the estate to properly execute upon the person’s passing. Changes in retirement plans, assets and liabilities can change over time, either growing or decreasing. The estate plan should reflect these changes in circumstances and desires for the transfer of a person’s estate.
The Colorado Biz Magazine outlines some additional reasons someone may change their estate plan. In some states, marriage laws have changed to accommodate same-sex marriages allowing those couples to leave certain items to their new spouse. Tax laws change over time, sometimes drastically, which can affect the tax liabilities beneficiaries face upon receiving their inheritance.
Some changes may seem trivial but can easily be overlooked. Charities can close or open that a person wishes to donate assets to that need updating. Moving states comes with changing laws that can affect how the executor or trustee handles the estate. Avoiding probate may become a bigger issue as assets increase with time.