Don't Let Your Estate Plan Fall Behind: 5 Items to Review Now

As the year winds down and families prepare for the holidays, fall is a good time to take a closer look at your estate plan. Life changes quickly, and documents that once reflected your wishes may no longer provide the protection or direction your family needs. A yearly review can help ensure your estate plan remains current and effective.

Here are five important areas to review before the holiday season:

Review Your Will and Trust

Your Will or Trust should reflect your current wishes and family circumstances. Consider whether there have been any significant changes since your documents were prepared, such as a marriage, divorce, birth of a child or grandchild, death in the family, or changes in your relationship with beneficiaries.

If you have created a Trust, make sure it is properly funded and that any assets intended to be held by the Trust are titled appropriately.

Check Your Beneficiary Designations

Beneficiary designations on retirement accounts, life insurance policies, annuities, and certain financial accounts can determine who receives those assets after your death. These designations may take precedence over instructions contained in your Will.

Review your beneficiaries to make sure they are still correct, particularly after a marriage, divorce, death, or other major life event. It is also important to review contingent beneficiaries, not just primary beneficiaries.

Revisit Your Powers of Attorney and Patient Advocate Designations

Estate planning is not only about what happens after death. Your plan should also address what happens if you become unable to make financial or medical decisions for yourself.

Review your Durable Power of Attorney and Patient Advocate Designation to ensure the individuals you have chosen are still the people you trust to act on your behalf. Confirm that their contact information is current and that they understand your wishes.

Review Your Assets and Property

Take inventory of your major assets, including real estate, bank accounts, investments, retirement accounts, business interests, and valuable personal property. Consider whether ownership of these assets is consistent with your overall estate plan.

For business owners, this may also be a good time to review succession plans, buy-sell agreements, and other documents addressing what happens to a business upon an owner's death or incapacity.

Consider Changes in Your Family and Finances

Finally, think about what has changed over the past year. Have your assets increased or decreased significantly? Have you purchased or sold property? Has a child reached adulthood? Has someone in your family developed special needs? Have your goals for charitable giving or leaving an inheritance changed?

Even if nothing significant has changed, an annual review can provide peace of mind and an opportunity to confirm that your plan continues to reflect your wishes.

The holidays are about spending time with the people who matter most. Taking time this fall to review your estate plan can help protect those you love and give you greater confidence that your wishes will be honored. If it has been several years since your last estate planning review, or if you have experienced a significant life change, consider speaking with an experienced estate planning attorney.

Written by Beier Howlett