Do You Need to Review Your Estate Plan?

Happy New Year! When’s the last time you reviewed your estate plan?

If it’s been a while, you may want to find yours, dust it off, and read it – you may discover that it’s out dated. For example, if you had a major life event, i.e., a loved one passed away, you suffered and survived a massive heart attack, it’s important for you to have a Durable Power of Attorney and Designation of a health care surrogate and living will in place. You’ll need to choose a trusted person who will oversee your financial and medical needs in the event you’re unable to do so.

Keep reading to learn why you need to review your estate plan and an estate plan checklist.

Why Do You Need to Review Your Estate Plan?

 If you’re not reviewing your estate plan at least yearly, semi-annually, or quarterly, you’re missing the opportunity to ensure that everything is order. Consider the following life events:

• The birth or adoption of a new child or children.
• The birth of grandchildren.
• The celebration of a marriage.
• The death of your health care surrogate
• The death of your Executor or agent under Durable Power of Attorney.
• The death of your spouse or life partner.
• The change in the number of dependents.
• The acceptance of a large inheritance.
• The disability or illness of your spouse or life partner.
• The closing of a small business.
• The divorce or separation from a spouse or life partner.

These and other life events will affect your estate. If you don’t update your estate plan to account for life events, you and your family may suffer the consequences, from unintended beneficiaries to facing probate court.

Reviewing your estate plan at the beginning and end of the year (minimum) will help you to create and secure the legacy you’d like to leave for your family. Also, your wishes will be carried out and you can make sure your beneficiaries are taken care of when you’re not here.

Checklist: Top 5 Items to Have in Your Estate Plan

Review and update your estate plan at the start of a New Year! Here’s a list of items you that should be a part of your estate. If you don’t have these documents, contact your attorney and make an appointment to discuss your estate plan today.

A Will

A will, also known as a ‘last will and testament’, is a document that details your final wishes. The court reads it after your death and makes sure your final wishes are carried out.

A Durable Power of Attorney

The Durable Power of Attorney [a part of incapacity planning] allows you to appoint someone to manage your financial affairs if you’re unable to do so. It is effective once signed but not effective upon your death. It’s a very powerful document, so make sure you trust whomever you appoint. 

Designation of Health Care Surrogate

The Health Care Surrogate Designation [part of incapacity planning] allows you to appoint someone to make medical decisions if you are unable to do so.

Living Will

The purpose of a Living Will is to let your doctors, family, and friends know what your end-of-life preferences are, from being on life support to organ donation. If you don’t have one, your family may disagree about what they think is best for you.

HIPAA Authorization Form

A HIPAA (Health Insurance Portability and Accountability Act) authorization form provides use or disclosure of your protected health information.

A Revocable Living Trust

To avoid probate, which can be time-consuming and expensive, you may consider having a living trust (hold legal title to property). You or someone else can be the trustee.

Are You Ready to Review Your Estate Plan?

How often you should review your estate plan depends on the amount of major life events you have. But as a general rule it’s best to read your estate plan at the beginning and end of the year. Also keep in mind that you may include the following in your estate plan:

• Insurance policies.
• Financial Institutions power of attorney.
• Beneficiary designation forms.
• Funeral fund account.
• Business protection (if you own a business or are a partner).
• Letter of intent.
• Guardian designations.

Reviewing and updating your estate plan with your attorney should be something that’s done every three years or so. It’s up to you to be aware of your life events and to account for them within your plan.

Make an intention today to read your estate plan, note any changes, and speak with your attorney immediately. You don’t know what lies before you, so it’s better to be as prepared for your sake and the sake of your family.

 Do you want a consultation? Download this estate planning worksheet!