When the time comes for the decorations to be packed away, the last of the holiday treats have been nibbled, and you're thinking about those New Year's resolutions, it's time to also consider updating your estate plan!
Why Now Is the Perfect Time
You've just spent time with family, caught up with loved ones, and maybe even noticed some big changes in their lives. Maybe your daughter announced her engagement, your son started a new business, or your grandkids are heading off to college soon. Life doesn't stand still, and neither should your estate plan.
What's Changed in Your World?
Think about what's different since you last updated your estate planning documents:
Did your family welcome any new members through birth, adoption, or marriage? Are there new grandchildren to consider? Has anyone gotten divorced or, sadly, passed away? These life events might mean it's time to revisit your beneficiary designations.
Remember that nephew who was great with money and you named as your executor? Is he still the right choice, or has his recent move across the country made you reconsider?
The Money Talk
The holidays might have given you a clearer picture of your family's financial situation. Maybe your previously stable son is going through a rough patch, or your daughter has become a savvy investor. These changes might affect how you want to structure your inheritances or whether you need to set up any trusts.
Don't Forget About the Practical Stuff
Take a fresh look at your power of attorney and healthcare directives. Are the people you've chosen still able and willing to handle these responsibilities? Do they still live close enough to help if needed?
New Laws, New Opportunities
The tax landscape and estate planning laws change regularly. What worked great in your plan a few years ago might not be the best strategy today. For instance, did you know that estate tax exemptions and gift tax limits get adjusted periodically? It's worth checking if these changes affect your plan.
A Quick Checklist for the New Year
Here's what you should review:
Will and trust documents
Beneficiary designations on life insurance and retirement accounts
Powers of attorney (both financial and healthcare)
Advanced healthcare directives
Guardianship designations for minor children
Asset inventory and current valuations
Making Changes Is Easier Than You Think
If you're worried that updating your estate plan will be as time-consuming as the original process, don't be! Often, simple updates can be handled efficiently, especially if you've kept good records.
When to Make Updates
While some changes in life are obvious signals to update your estate plan (like marriage, divorce, or new children), others might be less clear. If you're unsure whether your situation warrants an update, just give us a call. We're here to help you ensure your estate plan continues to reflect your wishes and protect your loved ones.
Remember, your estate plan isn't a "set it and forget it" document – it's a living strategy that should grow and change along with your life. The new year is the perfect time to make sure it's still working for you and your family.
Ready for a review? Let's chat! Your future self (and your family) will thank you for staying on top of this important task.
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