Individuals often ask Houston estate planning attorneys about some of the worst mistakes that can occur during—or after—the estate planning process. One of these fatal errors is when estate plans are not updated as the person’s situation in life changes. An estate plan—detailing who the person would like to receive their assets after their death—is based on the individual’s relationships at the time the estate plan is drafted. However, throughout the years, relationships and situations change that might precipitate the need to change the plan. Because it can be confusing to know if an estate plan needs updating, below are common questions and answers about this topic.
What Are Some Common Life Changes that May Alter an Estate Plan?
Common examples of life changes that may impact an estate plan include divorce or change in relationship status, the birth of a child, or the death of a loved one. In the case of divorce, there is often a need to change estate plan documents after the divorce is finalized. In many cases, spouses are named as beneficiaries in wills, life insurance, and retirement plans. However, if the beneficiary listed is not changed by an attorney, the ex-spouse will likely receive the listed policy or asset if the person dies.