ESTATE PLAN CHECK UP

by McGee Law Firm

As we move through different stages of life, our needs and priorities change, and the same is true for your estate plan. While having an estate plan is a great first step, keeping it updated is crucial. If it has been a few years since you last reviewed your documents, now is the perfect time for an estate plan check-up.

Many people create an estate plan and set it aside, assuming it will always serve their needs. However, life evolves, and events impact your plan’s effectiveness. Key reasons to review your estate plan include changes in family dynamics, such as marriage, divorce, the birth of a grandchild, or the loss of a loved one, all of which affect beneficiary designations and inheritance plans. Health considerations are another factor—updating your powers of attorney may be essential if you or your spouse have experienced declining health.

Financial shifts, such as selling property, inheriting assets, or changes in your portfolio, also warrant a review to confirm that your estate plan reflects these updates.

Additionally, if your named executor, trustee, or power of attorney is no longer the best choice, it is time to update those roles. Titling your assets and keeping beneficiary designations current helps you avoid unnecessary probate delays. Finally, keeping your plan up to date supports estate and tax compliance as laws change.

Several key documents should be reviewed during your estate plan check-up. Review your will and trust. Your will outlines how your assets will be distributed, while a trust allows your estate to avoid probate and provides additional control over distributions. Confirm that your named beneficiaries are correct, the trustee or executor remains your preferred choice, and any new assets are properly accounted for. Also, verify that your trust is fully funded and aligns with your financial situation. Next, examine your financial and healthcare powers of attorney, which allow someone to make decisions on your behalf if you become incapacitated. Confirm your chosen agent is still available and capable and that the documents comply with current state laws.

Healthcare directives and HIPAA release forms are equally important. A healthcare directive, also known as a living will, outlines your medical preferences if you cannot communicate. A HIPAA release form allows your loved ones to access medical information and communicate with healthcare providers. Without this form, privacy laws may prevent your family from obtaining crucial information during a crisis. Make sure your healthcare proxy understands your wishes and that your HIPAA release form is current and lists the appropriate individuals.

Beneficiary designations on assets such as life insurance policies and retirement accounts need to be reviewed. These designations override what is in your trust or will, so confirming they align with your wishes is essential. If you have a special-needs beneficiary, making sure their inheritance is structured correctly is critical. Without proper planning, an inheritance could disqualify them from receiving government benefits such as Medicaid or Supplemental Security Income (SSI). A Special Needs Trust allows you to leave assets for their supplemental needs without jeopardizing their program eligibility.

A general rule is to review your estate plan every three to five years or whenever a major life event occurs. However, if any of the following apply, an immediate update may be necessary: you moved to Texas from another state (as laws vary), you were recently widowed or divorced, you had significant changes in assets or health, or your designated executor, trustee, or power of attorney is no longer a suitable choice.

Keeping your estate plan updated helps make sure your assets are distributed according to your wishes, minimizes the burden on loved ones, and provides financial security for your beneficiaries. Failing to update your estate plan can lead to unintended consequences, such as assets going to the wrong beneficiaries, probate delays, unnecessary legal fees, family disputes, a special needs beneficiary losing government benefits, and increased tax liability.

Estate planning is not a “set it and forget it” process. A periodic check-up helps keep your plan in place to protect you and your loved ones. If it has been a while since you last reviewed your estate plan, now is the time to schedule a consultation with an experienced elder law and estate planning attorney. A small update today can prevent major headaches for your family in the future. Your estate plan should evolve with your life. Make sure it is working for you—not against you.