Springtime in New Mexico means blooming flowers, warmer weather, and, for many, a good old-fashioned spring cleaning. But while you’re clearing out closets and tidying up your home, don’t forget about something just as important—your estate plan. Just like your home, your estate plan needs regular maintenance. The best time to take care of estate planning updates is now, before any problems arise.
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Why Estate Planning Isn’t One-and-Done
Many people create an estate plan, tuck it away, and never think about it again. But life changes—and so do laws. If your estate plan is outdated, it may not reflect your current wishes or take advantage of legal changes that could benefit your family.
Here are a few life events that signal it’s time to refresh your estate plan:
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A marriage, divorce, or death in the family
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The birth of a child or grandchild
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A significant change in your financial situation
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The sale or purchase of real estate
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Retirement or changes to your employment
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Moving to or from New Mexico
If any of these apply—or if it’s been more than three to five years since your last review—it’s time for an estate plan check-up.
Spring Cleaning Checklist for Estate Planning Updates
1. Dust Off Those Documents
Do you know where your will, power of attorney, and healthcare directive are? If not, you’re not alone. Step one is simply locating your documents and reviewing them. Look for:
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Outdated names (like an ex-spouse or deceased relative)
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Old financial institutions
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Missing or incorrect beneficiary information
A quick glance might reveal that what once worked no longer applies.
2. Clean Up Old Trusts
If you or your spouse created a trust before 2010, it might include outdated tax planning tools—like an A/B trust split that no longer benefits you under current estate tax laws. Trusts that once made sense may now create capital gains tax issues for your heirs. Our experienced Alamogordo estate planning attorney can help revise your trust to better suit your needs today.
For example, newer options like a marital trust can protect children from a prior marriage while also allowing your assets to receive a second “step-up” in basis, which may reduce taxes when they’re sold.
3. Revisit Beneficiary Designations
Beneficiary forms on accounts like IRAs, 401(k)s, and life insurance override your will. If your forms are outdated, the wrong person could inherit those funds. We often see situations where an ex-spouse or estranged relative ends up with a large inheritance—simply because the forms were never updated.
4. Tidy Up Powers of Attorney
Many financial institutions won’t accept a power of attorney document that’s more than 10 or 20 years old. If your documents are older, they may be ignored when you need them most. Refreshing your power of attorney ensures your chosen agent can help you without unnecessary delays.
How Changes in Law Affect Estate Planning
Laws don’t stay the same forever. Recent changes, like the SECURE Act, have reshaped how retirement assets should be passed on. If your estate plan names a trust as a beneficiary of a retirement account, and it hasn’t been updated, your heirs might end up paying more in taxes than necessary.
State laws also change. In New Mexico, updated probate rules may allow for simpler ways to pass on personal property—if your estate planning documents reflect those changes.
Local Considerations for Alamogordo Families
Living in Alamogordo, NM, you benefit from being in a community property state. That means married couples get unique tax advantages when one spouse passes away—especially in terms of step-up in basis for jointly owned property.
But if your trust is outdated, you could lose out on that second step-up in basis. That means your heirs might pay capital gains taxes they could have avoided with a simple trust update.
Don’t Leave Your Estate Planning Updates for “Someday”
Just like you wouldn’t wait for your home’s plumbing to leak before calling a repair person, you shouldn’t wait for a crisis to review your estate plan. A small investment of time today can prevent confusion, heartache, and costly legal problems for your loved ones tomorrow.
Estate planning is not just about protecting wealth—it’s about protecting your wishes, your loved ones, and your peace of mind.
Ready to Tidy Up Your Estate Plan?
Whether you created your plan years ago or you’re just starting the process, Attorney Michele Ungvarsky at E-Law is here to help. Michele provides compassionate, clear guidance for families throughout Alamogordo, helping them update and maintain estate plans that truly reflect their goals. Request your estate planning check-up and let’s get your documents—and your peace of mind—fresh and in order this spring.
References: Kiplinger (March 6, 2025) “10 Ways to Refine Your Financial Plan for a More Secure Future” and Forbes (May 25, 2021) “5 Reasons To Have Your Parents’ Estate Plan Reviewed”
