27 Dec Estate Plan Updates for the New Year
Since estate planning enables you to create a plan for the unimaginable, provides your family with financial security, and prevents potential warfare over assets, it’s an important task to check off your to-do list. However, estate planning isn’t a one-and-done deal. A solid estate plan is routinely updated. The start of the new year is a great time to take stock of last year’s changes and make updates to your plan as needed. Read on to discover which parts of your estate plan you should review for potential changes.
1. Beneficiaries
The start of the new year is a great time to review the beneficiaries listed on your accounts. If you recently became married or divorced, checking beneficiaries on your accounts is especially important. This is because the person listed as a beneficiary receives the assets in your account when you die. You’d want to remove an ex spouse or add a new spouse. Or, if you’d like the assets in your accounts to go to your children or a charity, it’s important to double check that they’re listed on the account. This is because the person listed as a beneficiary will receive the money in the account even if your will says otherwise.
2. Powers of Attorney
It’s also important to review your durable and healthcare power of attorney documents at the start of the new year. It’s important to review your powers of attorney because the individuals listed there have the power to make financial and medical decisions on your behalf if you become incapacitated. If you’d no longer like the individuals listed to make decisions on your behalf or if they are no longer able to, you need to update your documents.
3. Guardians for minor children
Similar to checking your powers of attorney at the start of the new year, you should also check the guardians you’ve listed for minor children. The start of the new year is a great time to check in with your selected guardians to make sure they’re still willing to step in and raise your children if something happens to you.
4. Executor(s)
You also need to check who you have listed as the executor of your will at the start of the new year. If your executor has become ill or has died, you need to update your estate plan to include a new executor.
5. Changes in assets
Any changes in assets over the course of the past year also require estate plan updates. You can change the amount your heirs will receive based on the changes in your assets. Or, if you’ve gained family heirlooms or items with sentimental value, you should update your last will and testament to reflect who you’d like to receive those items when you’re gone. This will help to prevent family warfare later on.
To contact Boyum Law Firm for help with updating your estate plan with the new year, click here.