Because life is unpredictable, it’s wise to take a proactive approach to estate planning. If you draft a will while you’re relatively young and healthy, it’s important to review it periodically. After all, both your family dynamic and financial situation will inevitably change over the years. In addition to updating your documents every three to five years, attorneys recommend modifying them after the following life events. 

3 Major Events That Should Prompt a Review of Your Estate Plans

1. Acquiring a Major Asset 

If you fail to update your will after buying a home, receiving a sizable inheritance, or winning the lottery, the laws of intestate succession will determine how the asset is distributed among those who survive you. While these laws prioritize immediate family members, they don't take into account complicated relationship dynamics. They may not necessarily distribute your property in the way that you would’ve. 

2. Starting a Small Business 

If you were to pass before you got the chance to retire or sell your company, what would happen to your life’s work? Every new venture needs a business succession plan, which should state in no uncertain terms how operations will continue—or how the company will be liquidated and distributed—in the event of the owner’s death.

3. Changing Your Marital Status 

In the state of Texas, marriage does not automatically revoke any arrangements that were made prior to the wedding. If you want to leave anything to your new spouse, you’ll need to update the terms of your will and add them as a beneficiary. Divorce affects the terms of a will, but it doesn’t automatically revoke it. Generally speaking, the probate court will approach the will as if the ex-spouse had predeceased the creator. As such, you’ll have to specify new beneficiaries following a divorce.

If you need to modify your estate plans, turn to Corey C. Davis, CPA. Practicing out of Kerrville, TX, this knowledgeable attorney is well-versed in wills, trusts, tax returns, and legal advice. For more than a decade, he’s been helping clients implement arrangements that will protect their loved ones—and themselves—in all eventualities. To schedule a consultation with this CPA, reach out on his website or call (830) 257-8800.