Tax season requires you to gather detailed financial information. You review retirement accounts, investment income, property records, and other financial documents in order to file your return.
While most people focus only on completing their taxes, this process can also highlight something important: whether their estate plan still matches your assets.
Over time, people open new accounts, purchase property, change financial institutions, or experience family changes. If your estate planning documents have not been reviewed recently, they may not reflect these updates.
Before you file your taxes this year, it may be a good time to update your estate plan in New Mexico to ensure everything still works together the way you intend.
Why Tax Season Can Reveal Estate Planning Issues
Preparing your taxes requires a full look at your financial life. During this process, you may notice changes such as:
- New retirement or investment accounts
- Additional property or real estate
- Changes in charitable giving
- New income sources in retirement
- Updated financial institutions or account ownership
Each of these changes can affect how your assets are transferred after your lifetime.
If your estate plan was created years ago, it may not account for these newer assets. In some cases, assets may pass differently than you expected simply because the documents no longer reflect your current financial situation.
Make Sure Your Assets Are Properly Accounted For
An estate plan is designed to address the assets you own. However, people often acquire new assets over time without updating their documents.
For example, you may have:
- Opened new brokerage accounts
- Rolled over retirement funds
- Purchased or refinanced real estate
- Started new investment accounts
If these assets are not coordinated with your estate plan, they may not transfer the way you intended.
Check Beneficiary Designations
Some of the most important assets people own are retirement accounts and life insurance policies. These accounts typically pass directly to beneficiaries rather than through a will.
This means the beneficiary designation controls who receives the asset.
If beneficiary forms are outdated, assets could go to someone you no longer intended. This happens more often than many people realize.
Common issues include:
- Naming a former spouse
- Listing a beneficiary who has passed away
- Forgetting to add new family members
- Naming an estate instead of a specific person or trust
Review Retirement Accounts and Income Sources
Retirement accounts are a major part of many estate plans. As people approach or enter retirement, these accounts often become more active due to withdrawals or required distributions.
Managing retirement withdrawals and income sources is an important part of long-term financial planning. These decisions can influence how assets grow and what remains available for future generations.
Because retirement accounts play such a large role in many financial plans, it is important that they are coordinated with your estate planning documents.
Consider Whether a Trust Still Reflects Your Assets
Some people include trusts in their estate plans to manage how assets pass to loved ones. Trusts can provide structure for distributing property, managing assets for beneficiaries, or handling complex family situations.
However, a trust created years ago may not reflect your current financial picture.
Changes that may affect your trust include:
- Growth in investments or savings
- New retirement accounts
- Changes in property ownership
- Updated financial goals for your family
Major financial or legal changes are often a good reason to revisit estate planning documents to confirm they still support your goals.
Signs It May Be Time to Update Your Estate Plan in New Mexico
Tax preparation often highlights changes that signal it may be time to review your estate plan.
You may want to consider an update if:
- You opened new financial or retirement accounts
- You purchased or sold property
- Your assets have grown or changed significantly
- Your family situation has changed
- Your estate plan is more than three to five years old
Even small updates can make a meaningful difference in ensuring your wishes are clearly documented.
Key Takeaways
- Tax preparation often reveals changes in your financial life.
- New accounts or assets may not be reflected in your estate plan.
- Beneficiary designations should be reviewed regularly.
- Retirement accounts and trusts should be coordinated with your estate planning documents.
- Periodic reviews help ensure your plan still reflects your wishes.
- If your financial picture has changed, it may be time to update your estate plan in New Mexico.
Ready to Review Your Estate Plan?
If tax season has revealed new accounts, assets, or financial changes, it may be a good time to review your estate plan. Keeping your plan aligned with your current financial life can help ensure your wishes are clearly documented and your loved ones have guidance when it matters most.
Attorney Michele Ungvarsky of E-Law works with individuals and families in Las Cruces and surrounding communities to create thoughtful estate plans that reflect each client’s unique situation.
Request a consultation with Attorney Michele Ungvarsky to discuss whether it’s time to update your estate plan in New Mexico.
References: U.S. News & World Report (March 14, 2024) “5 Ways to Minimize Taxes on Retirement Income” and Forbes (July 7, 2025) “10 Reasons To Reevaluate Your Estate Plan Following The 2025 Tax Law”