Spring Clean Your Estate Plan: 4 Steps to Get Started

Spring is synonymous with renewal and rejuvenation. Just as we clear out clutter from our homes to make way for what's fresh and relevant, reviewing and refreshing your estate plan is essential. Through this process, you ensure that your documents align with your current intentions and circumstances. Life's milestones like marriage, divorce, or the arrival of a new family member can dramatically impact your wishes, necessitating regular estate plan updates.

Step 1: Beneficiary Designations

Examine the beneficiaries listed on your life insurance policies, retirement accounts, and other assets. Life changes can warrant updates here. For example, if you’ve recently married or welcomed a child, you may want to ensure they’re included appropriately. It’s crucial to confirm these designations still reflect your current intentions to prevent future conflicts.

Step 2: Health and Financial Directives

Your health care proxy and financial power of attorney should always reflect trusted and available individuals. Outdated directives might lead to significant issues in medical emergencies, such as lacking authority to make critical decisions on your behalf. Regularly review these documents to support your current medical and financial decision-makers.

Step 3: Asset Titling

Verify that property titles and financial accounts align with the structure of your estate plan. Newly acquired assets can sometimes disrupt your planning and complicate the probate process. Collaborate with an estate planning professional to rectify any misalignments to ensure your wishes are legally binding.

Step 4: Trusts and Wills

Review your will and any established trusts. They should accurately reflect your current wishes and cater to any significant changes in financial or legal environments, like new tax laws. Consulting an estate attorney can be valuable in making any necessary amendments to these documents.

Making your estate plan review a regular habit, much like spring cleaning, ensures your legacy and wishes remain intact as life evolves. Consider scheduling a review session with an estate planning professional to stay on top of these crucial updates.