Spring Cleaning Your Estate Plan: Where to Start

Spring is the perfect time to not only dust off those corners of your house but also to refresh another important area of your life: your estate plan. Just like sorting through the attic, organizing your estate plan can ensure everything aligns with your current and future intentions. Life changes such as marriage, divorce, or the birth of a child can greatly impact your estate planning documents, making regular updates essential.

Beneficiary Designations

Kicking off your estate spring cleaning, let's focus on beneficiary designations. It's crucial to review the beneficiaries on life insurance policies, retirement accounts, and other assets. Life changes, such as marriage or the birth of a child, can significantly alter whom you wish to benefit. Confirm that your beneficiaries are up to date and reflect your current wishes to prevent unintended distributions.

Health and Financial Directives

Another essential area to review is your health care proxy (medical power of attorney), financial power of attorney, and living will. These directives ensure someone you trust can make decisions on your behalf if necessary. If your appointed individuals are no longer available or trusted, updating them is vital. Outdated directives can lead to complications in medical emergencies, illustrating the importance of keeping them current.

Asset Titling

Next, examine whether the titles of your properties and financial accounts align with your estate plan. Newly acquired assets may not automatically fall into existing plans, creating discrepancies. Such misalignment can complicate probate, so it's wise to work with an estate planning professional to correct any issues.

Trusts and Wills

Finally, dust off your will and trust documents. Ensure they still reflect your intentions since financial or legal changes, such as new tax laws, might necessitate updates. If substantial changes are needed, consulting an estate attorney is advisable to ensure your documents are legally sound and comprehensive.

Making estate plan reviews a yearly habit during spring cleaning can prevent potential oversights and aligns your plans with your current life circumstances. I encourage you to schedule a review with an estate planning professional to guide you through this essential process.