Why You Must Check Your Estate Plan Every Year
Revisit for Your Welfare
Certain things happen every year: holidays, birthdays, anniversaries…and estate plan reviews.
That’s right! Checking your estate plan is worth turning into an annual event. Having an up-to-date estate plan is as much of a gift as anything you’d give a loved one on a special day. By ensuring your plan reflects any changes in your life, you can prevent conflicts down the road while protecting the people and causes you care about most.
Mark a specific date on the calendar — maybe close to tax time, when finances are on your mind — and put a reminder in your phone. Then, when the day arrives, revisit these eight things:
8 Areas to Consider
- Review your will or trust to ensure it reflects your current situation as well as any tax law changes.
- Evaluate your life insurance policies to make sure there is adequate coverage for your loved ones. If you no longer need a policy, consider using it to make a gift to support the Foundation.
- Review the beneficiary designations of any life insurance policies and retirement plans so they coordinate with your overall estate plan. If you want to remember the Foundation in your plan, consider retirement plan assets. They are one of the most highly taxed assets to leave your family, but come to a nonprofit tax-free.
- If you are nearing retirement, talk with a financial advisor to map out strategies for maximizing your savings.
- Update your health care power of attorney to ensure that someone you trust makes medical decisions on your behalf in the event of an illness or disability. You should also create or update your living will to protect your wishes regarding prolonged health care and end-of-life decisions.
- Formalize your financial power of attorney to ensure someone will handle your financial decisions if you become unable to do so.
- Encourage your adult children to create or update their own estate plan. Remind your parents to review their plans so their financial intentions are followed and you know what steps to take in the future.
- Call Alex Matulewicz at 508-660-0331 to schedule your free consultation today!
