Spring is the perfect time to clear out the clutter, not just at home but in your estate plan too. Just as you refresh your living space, consider this season as an opportunity to ensure your estate plan remains aligned with your current wishes and circumstances. Changes in life such as marriage, divorce, or the welcoming of a new family member can significantly impact your estate planning, making regular updates not just beneficial, but essential.
Beneficiary Designations
One of the first areas to review is your beneficiary designations. Life insurance policies, retirement accounts, and other assets typically facilitate direct transfers to named beneficiaries. If you’ve recently married, divorced, or had children, it’s crucial to confirm that these designations are up to date and reflect your current intentions, preventing future conflicts over your assets.
Health and Financial Directives
Equally important is reviewing your health and financial directives. An Advance Medical Directive / health care proxy (medical power of attorney) / living will and financial power of attorney ensure the right people are in place to make decisions on your behalf during emergencies. Imagine appointing someone you no longer trust or who is unavailable during a medical crisis; this could lead to significant complications. Ensure these documents name individuals you still trust and confirm they are willing and able to undertake these responsibilities.
Asset Titling
Asset titling ensures that your property titles and financial accounts match your estate plan. Acquiring new assets or opening new accounts can create discrepancies that confuse the probate process. A review with an estate planning professional can help in identifying and correcting any mismatches.
Trusts and Wills
Lastly, evaluate your trusts and wills. Do they still reflect your wishes accurately? Financial or legal changes, like new tax laws, might necessitate updates. Consulting with an estate attorney to make any necessary modifications can ensure your estate plan remains robust and effective.
By making estate plan reviews a regular habit, you position yourself and your loved ones for peace of mind. Take the initiative this spring to consult with an estate planning professional, ensuring that your plan is as refreshed and vibrant as the season itself.