Attorney
Many people believe that once they’ve set up their estate plan, the process is over. In truth, estate planning is an ongoing project, and reviewing your plan every year is essential for protecting your interests and your family’s future. If you haven’t looked at your estate plan documents in a while, this year-end checklist will help you make sure everything is in order or, if not, take steps to address any issues you encounter.
Update Your Will
Your will is the backbone of your estate plan. As the year winds down, check if there have been changes in your family or financial situation that your will should reflect. For example, adding any new assets or removing those you’ve sold or given away is a good idea. Furthermore, think about who you’ve named as your beneficiaries. If your relationships or family circumstances have changed, make the appropriate adjustments in your will. Finally, review the executor and guardians you’ve appointed for your children to confirm they’re still appropriate choices.
Review Beneficiary Designations
Beneficiary designations on retirement, life insurance, and investment accounts bypass your will. Even if your will is up-to-date, these designations need separate attention. Confirm that you’ve chosen the right people as beneficiaries, and check if you’ve listed primary and contingent (backup) beneficiaries.
Evaluate Your Power of Attorney
A durable power of attorney appoints someone to handle your financial and legal matters if you cannot do so due to an injury or disability. Review who you’ve assigned as your agent to see if they are still the best person for the role. If you trust someone else to make financial decisions, update this document to reflect that choice. You might also consider having a backup agent in place, just in case.
Assess Your Healthcare Directives
Healthcare directives outline your medical treatment preferences if you can’t communicate your wishes. Review your living will and healthcare power of attorney to ensure they align with your wishes. If you’ve had any significant changes in your health or new insights about your preferences, adjust these documents accordingly. This review also lets you update the person you’ve chosen to make medical decisions on your behalf (if necessary).
Consider Trust Updates
Trusts offer valuable flexibility in managing and distributing your assets, but they need periodic attention. If you’ve set up a revocable living trust, review its terms to make sure it fits your current goals. It’s also smart to confirm that all your intended assets are included in the trust to avoid probate. Finally, check if the appointed trustee still fits your needs or if a backup trustee might be helpful.
Review Digital Assets and Online Accounts
When creating an estate plan, it’s easy to overlook digital assets like social media accounts, online banking, and digital photo collections. Make a list of these assets and decide who can access them if something happens to you. Updating login details and account instructions every year can help protect your assets and ensure they’re passed on or managed according to your wishes.
Organize Key Documents
Having a solid estate plan only helps if your loved ones can easily find the appropriate documents. Make sure all your estate planning documents—your will, trust documents, power of attorney forms, healthcare directives, and asset lists—are organized and stored in a safe, accessible place. Let trusted family members or your attorney know where these documents are stored to prevent confusion.
Contact Our Shelbyville, KY, Lawyers Now for Help With Your Estate Plan
If you need help updating or creating your Kentucky estate plan, Berkley Oliver can adjust or draft the necessary documents to ensure your estate plan aligns with your goals and protects your family’s financial future. Call us today or complete our contact form for a consultation.