Having a sound estate plan is the best way to ensure the execution of your wishes upon your passing. It also protects your interests in the event of incapacity. However, estate planning isn’t something you do once and never worry about again. There are many reasons why you should review and update your estate plan.
Mid-year is a good time for an annual check-in to ensure your plan is still on track. This post covers several key points to consider during your mid-year check-in.
Your Mid-Year Estate Planning Review
Life constantly changes. Major life events, such as births, deaths, marriages, or significant health changes, can impact your goals. A mid-year review provides an opportunity to make changes if the plan no longer reflects your current circumstances. Below are some points to address during this review.
Assets, Accounts, and Investments
Assess any changes to your financial situation. Have there been significant changes in your assets or overall wealth? Did you buy or sell property, open new accounts, or make large gifts? Verify and consider beneficiary designations on retirement accounts and insurance policies. This information must be current to ensure the proper distribution of assets upon your passing and prevent any oversights.
Wills and Trusts
Wills and trusts are key documents in estate planning. Check that the listed beneficiaries for both reflect your current wishes. Consider any changes in assets and how that may affect your will or trusts. You may want to update the recipients of certain items or the individuals serving as executors or trustees. Confirm these individuals are still capable and willing to act on your behalf. A quick review ensures these documents still meet your needs.
Incapacity Planning Documents
Seniors may have various documents for incapacity planning. Mid-year is a good time to review your healthcare surrogate, financial power of attorney, and advance directives. Are the people you’ve named still the best choices to make decisions on your behalf? Maybe you need to update the scope of powers these documents confer. Keeping these documents current ensures your wishes and the sound management of your affairs are honored in the event of incapacity.
Digital Assets
Digital asset estate planning is a growing concern among seniors. More people hold online bank accounts, cryptocurrency, websites, and other digital assets. Make sure to review all these holdings and document the relevant information. Record the login details for accounts and your wishes for these assets. Review all terms and conditions for any changes that may impact your estate plan. Accounting for these assets can prevent confusion, conflict, and losses.
Estate planning is complex, and you want to ensure the best interests of yourself and your family. Beyond your personal situation, external factors (like tax laws) can influence your needs. That’s why seniors should seek professional advice when reviewing and updating their estate plans.
Do you need professional guidance in updating your estate plan? The elder law experts at the Scott Law Offices are here to help. We can assist you in updating documents, transferring assets, and evaluating your needs. Reach out now to learn more about our estate planning services.
