Just as we open windows to let fresh air sweep through our homes each spring, it's equally important to give our estate plans a fresh start. Taking time to 'spring clean' your estate plan ensures it reflects your current wishes and adapts to life's changes—like marriage, divorce, or the addition of new family members. A refreshed estate plan protects your loved ones and aligns more closely with your current situation.
Review Beneficiary Designations
Your life insurance policies, retirement accounts, and other assets rely on beneficiary designations to dictate who will receive these resources. If you’ve experienced any life changes—such as marriage, divorce, or welcoming a child—it might be time to update these beneficiaries to reflect your current intentions. Leaving outdated information could lead to complications or disputes.
Update Health and Financial Directives
Your health care proxy (medical power of attorney), financial power of attorney, and living will need regular scrutiny. The individuals appointed should still be trusted, available, and willing to fulfill these roles. If not, outdated directives can complicate medical and financial decisions, especially in emergencies.
Check Your Asset Titling
Ensure that property titles and financial accounts align with your estate plan. New assets can create inconsistencies that might complicate the probate process. Working with an estate planning professional can help reconcile any discrepancies and maintain smooth asset transitions.
Revisit Trusts and Wills
Your will and trusts should consistently mirror your intentions. Financial shifts or new tax laws might necessitate updates. For instance, if tax laws change, your estate strategy may need adjustments. Consulting with an estate attorney ensures these documents remain up-to-date and accurate.
Making estate plan reviews a regular habit secures peace of mind, knowing your plans and wishes are clear and actionable when needed. Consider scheduling regular sessions with an estate planning professional to keep your affairs in order. This proactive approach can save your family from potential distress and conflicts.