Spring has always been synonymous with renewal and refreshment. Just as we dive into our closets and garages to declutter and organize, it’s equally important to spring clean our estate plans. With life continuously evolving, your estate plan should reflect your current circumstances and wishes. Regularly reviewing your documents ensures they align with your life, be it through a marriage, divorce, or the addition of new family members. Here are some key areas to focus on when updating your estate plan.
Beneficiary Designations
A good start is reviewing the beneficiaries on life insurance policies, retirement accounts, and other assets. Life events such as marriage, divorce, or the birth of a child can significantly impact your choices. Ensure that these reflect your current intentions and are up to date to avoid any potential disputes or unintended distributions.
Health and Financial Directives
Health care and financial directives are vital components of an estate plan. Review your healthcare proxy (medical power of attorney), financial power of attorney, and living will. Confirm that the appointed individuals are still trusted and available. Outdated directives can lead to complications in medical emergencies, emphasizing the importance of keeping these documents current.
Asset Titling
Check if your property titles and financial accounts align with your estate plan. Any newly acquired assets or accounts could create discrepancies that complicate probate. Working with an estate planning professional can help correct any misalignments, ensuring everything is structured to your advantage.
Trusts and Wills
Your will and any trusts should accurately reflect your current wishes. Financial or legal changes, such as new tax laws, might necessitate updates. Consulting an estate attorney can provide guidance to make necessary modifications and optimizations, ensuring your estate plan meets your objectives.
Making time for estate plan review should become a habitual practice, much like spring cleaning. This not only gives peace of mind but also assures that your estate plan continuously protects your interests and those of your loved ones. Consider scheduling a regular review with an estate planning professional to stay ahead.