Spring is in the air, and just as many of us are tidying up our homes, it's also an ideal time to refresh your estate plan. Like decluttering our living spaces, reviewing your estate plan ensures it aligns with your current wishes and circumstances. Life changes such as marriage, divorce, or the arrival of a new family member can impact your estate, making regular updates essential.
Beneficiary Designations
One of the first steps in spring cleaning your estate plan is reviewing the beneficiaries listed on your life insurance policies, retirement accounts, and other assets. Remember, life changes, such as marriage, divorce, or the birth of a child, can necessitate updates. Ensure the beneficiaries you have named are up to date and reflect your current intentions.
Health and Financial Directives
Reviewing your health care proxy (medical power of attorney), financial power of attorney, and living will is crucial. It is important to make sure the people you've appointed are still available and trusted to fulfill these roles. For example, outdated directives could lead to complications in medical emergencies if the appointed individual is unavailable or unwilling to act.
Asset Titling
Checking your property titles and financial account registrations is another critical area. Newly acquired assets or accounts can sometimes be excluded from your estate plan, complicating probate. If you notice any discrepancies, consider working with an estate planning professional to correct the alignment of these documents.
Trusts and Wills
Lastly, revisit your will and any trusts to ensure they still reflect your wishes. Financial or legal changes, such as new tax laws, may also require updates. If any modifications are necessary, consulting with an estate attorney is advisable.
By making estate plan reviews a regular habit, you'll ensure it continues to serve its purpose in protecting your interests and those of your loved ones. Consider scheduling a review with an estate planning professional to maintain your plan in optimal condition.