New Year’s Resolution: Estate Plan Check-Up
As this year comes to an end, you are probably thinking of resolutions and goals you want to accomplish next year. Maybe you hope to save more money, further your education or lose a few pounds. Whatever else is on your resolution’s list, be sure to add in reviewing and updating your estate plan.
Put peace of mind at the top of your goals by taking a fresh look at your estate plan documents (will, power of attorney, trust, etc.) so no matter what the new year brings, you know your affairs are in order.
Consider reviewing the following items for accuracy and completeness, particularly if you’ve had changes with family, finances, assets, legal residence and/or health this year.
· Family information. Make sure names and addresses are correct on all documents. Update the addresses of ex-spouses if they need consideration and the names and addresses of your children. You may need to add a new child, update a child’s married name or remove loved ones who have died.
· Assets. Revise your asset list if you’ve purchased, inherited or sold/gifted assets. Assets might include bank accounts, investment accounts, stocks, bonds, vehicles, boats, airplanes, business interests and real estate. You may also list jewelry, art, antiques, family heirlooms, digital assets or personal memorabilia in a Personal Property Memorandum with instructions on how you want them distributed.
· Beneficiaries. Review your beneficiaries and determine if you still want your estate allocated the way you have it set up. Who have you named to leave your assets and belongings to? Do you want to deliver as a lump sum or divide distribution over time or at a certain age? If you have minor children, you may want to set up a trust and consider adding direct beneficiary designations so the asset will pass outside of probate. Also, be sure to review the terms of a special needs trust, if applicable, in case your family member’s needs have changed.
· Directives. Check that your living will, durable and limited power of attorney, trust and other documents are still what you want. Do you have a Health Care Power of Attorney in place to make medical decisions if you are unable to? If you have questions or want to make changes or additions, make an appointment with legal assistance to update your wishes.
· Fiduciaries. Analyze the person or people you have assigned to make decisions for you if you can’t make them yourself. Have any relationships changed? Do you need to update contact information? Have your children reached the age where you want to name them as executor or co-executor? These are all important questions to consider.
· Designations. Check your designations for retirement accounts and insurance policies, and make sure they match your wishes, particularly since they are often separate from your estate plan.
· Estate plan letter of instruction. Look to make sure that the instructions you have for your representative are complete and up to date. Make sure your letter includes a list of essential contacts (lawyer, accountant, financial advisor, funeral director, etc.) and directions on where to find all your important papers, records and documents. You should also have a record of all your digital assets — internet accounts, bank accounts, brokerage and online bills — for them to use. You may also wish to include your final disposition and memorial instructions for the person you have designated to make your funeral and burial arrangements.
Making a yearly review of your estate plan a part of your New Year’s resolutions can save you time and worry. You may find you don’t need to change a thing, but you may also find you have a few amendments to make. Schedule your no-cost appointment with your installation’s legal assistance office to review your estate plan and receive assistance as you make updates.
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Written by Stephen: Proud son of a WWII tail gunner who learned about budgeting from Mom growing up on the farm.
