August is Make-a-Will Month: Time to Update Your Will?
This August, we invite you to join others in celebrating Make-a-Will Month. We’re thrilled to feature guest author Leigh K. Freeman, Attorney at Law specializing in business and estate planning, who will provide valuable insights into estate planning, from simple tips to more complex needs.
By Leigh K. Freeman, Attorney at Law PLLC
August is Make-a-Will Month, and it is also a great reminder for those of us who have an estate plan to update it on a regular basis. If you are one of the approximately 32% of Americans who have a will in place, congratulations! You took the first steps and completed your estate plan. Unfortunately, this is not something you can just put on the shelf and never think about again. Why? Life happens! The one predictable thing about life is that it’s unpredictable. That’s why it is important to update your estate plan when changes occur so that your documents are up-to-date and accurately reflect your wishes.
Here are some of the common life events that may result in changes to your current estate plan:
Marriage. Texas is a community property state. That means that the wealth acquired by both spouses during the marriage is considered to be owned by the spouses together. This could have significant effects on your estate plan if you plan on leaving property to someone other than your new spouse.
Birth of a child. The birth of a child comes with great joy and great responsibility. You are now in charge of another human! This means that if something happens to you and the child’s other parent, you will need to decide who gets the privilege and the burden of raising your child. This decision is the one I see clients consistently struggle with. However, just because it’s hard, doesn’t mean you should put it off. Get this done before the child is born just in case there are any complications with the birth. While it is best to update your will each time a new child is born, your will should be flexible enough to provide for future children.
Death of a loved one. Experiencing the loss of a loved one is one of the most difficult things that we experience in our lives. If the decedent was listed as a beneficiary, executor, guardian, or agent, you will need to update your plan.
Divorce. If you are thinking about divorce, you should revisit your estate plan. If you are like most people, your will leaves everything to your surviving spouse. If you are in the middle of a divorce, but it has not yet been finalized, this is still the case. Once the divorce is finalized, Texas law will invalidate any gifts to your ex-spouse contained. However, you will need to decide who your new beneficiaries are.
Inheritance. If you receive a sizeable inheritance, your plan may change significantly. One reason for this is that inheritance is considered separate property in Texas (as opposed to community property). This could have the result of a previously “equal” estate plan between spouses becoming lopsided.
Moving to a new state. Estate-planning laws vary from state to state and it’s best to visit an attorney in your new home state to find out how these differences might affect your plan.
Regular review. In addition to these life events, I recommend that you sit down with your attorney and re-visit your estate plan every three to five years to make sure that everything is still in line with your current wishes. For example, you may want to include charitable giving as part of your plan now.
This article is for informational purposes only and does not constitute legal or tax advice. Please seek advice from a licensed attorney before making any legal decisions.
© 2024 Leigh K. Freeman Attorney at Law PLLC. All rights reserved.