As we go through life, our circumstances change, and so do our wishes for the future. This means that our estate plans need to be updated from time to time to ensure they accurately reflect our current wishes.
Here are five things you want to check to make sure your estate plan is up to date.
1. Will or Trust
The first thing to check is whether your will or trust is current with your wishes. A will or trust is a legal document that outlines how you want your assets to be distributed after your death. While a will and trust serve a similar purpose, a trust can offer additional benefits, such as avoiding probate and providing ongoing management of your assets. If you're not sure which option is best for you, it's a good idea to consult with your financial advisor or estate planning attorney for help deciding.
It's important to review your will or trust periodically to ensure it still reflects your wishes. If you have experienced any major life changes, such as getting married or having children, your will or trust may need to be updated to reflect these changes.
2. Beneficiary Designations
Many assets, such as life insurance policies, retirement accounts, and bank accounts, have beneficiary designations that determine who will receive the assets after your death.
It's important to review these designations periodically to make sure they are up to date. For example, if you have gotten divorced or welcomed grandchildren into the family since you last updated your designations, you may want to double-check your beneficiaries.
3. Financial Power of Attorney
A financial power of attorney is a legal document that allows someone you trust to manage your financial affairs if you become incapacitated.
It's a good idea to review your power of attorney to make sure it remains valid and the person you appointed is still willing and able to serve in this role.
4. Healthcare Power of Attorney
A healthcare power of attorney is a legal document that allows someone you trust to make medical decisions on your behalf if you are unable to do so. Just like your financial power of attorney, you want to review your healthcare power of attorney to make sure it still reflects your situation.
5. Living Will
A living will is a legal document that outlines your wishes for medical treatment in the event you are unable to communicate them. It's a good idea to review your living will at least annually to ensure it accurately reflects your wishes. For example, if you have changed your mind about certain medical treatments, you may want to update your living will accordingly.
Final Thoughts
It's important to review your estate plan regularly and update it to reflect your changing life. By checking your will or trust, beneficiary designations, financial and healthcare powers of attorney, and living will, you can help ensure that your estate plan is up to date and that you and your loved ones will be taken care of according to your wishes.
If you have any questions about updating your estate plan, it's a good idea to consult with a financial advisor or estate planning attorney to help guide you through the process.
Schedule a complimentary consultation with one of our fee-only financial planners to discuss your personal situation.
This material was generated using artificial intelligence (ChatGPT) and edited by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.