Happy New Year! Now that the champagne has been consumed and the party horns have been put away, it’s time to really begin the New Year. You may or may not be sticking to those resolutions you made on January 1st, but even if they are a vague memory at this point, I challenge you to add one more resolution to your list – review your estate plan
1. Look for your estate planning documents and see if they are still in the place where you left them. Check your fireproof safe, safety deposit box, or other location where you store the original documents. In addition, make sure your electronic copies are where you last left them. You may have chosen to keep them on a CD or on your home computer, in any case, make sure they are still accessible. Additionally, make sure your heirs, executor, or trust administrator know where they are.
2. Review your children’s guardian nominations. Has anything happened either in your children’s lives or your guardian’s lives that may make you rethink things? Has the person (people) you’ve named as guardians moved, had a child, divorced, or remarried? If so, does this impact your decision? Have any changes happened that might make you rethink the people you named as short-term guardians?
3. Did any of your children turn 18? If so, you need to make sure that they have the proper legal documents in place. They should have their own healthcare power of attorney in case something happens to them. Without it, you as their parent, will not have access to their medical records or even be able to access medical information in an emergency.
4. Update, review, or consider a pet trust. If you currently have a pet trust, has anything happened that would make you rethink it? Did something happen to your pet that may mean there are more medical expenses than you thought? Did you get a new pet this year that you want to be sure will be cared for if something happens to you?
5. Think through 2013 and list any substantial assets you may have acquired. If you have new assets, make sure they are transferred into your trust, BUT NOT YOUR 401K OR IRA! If they aren’t, those assets could end up in probate even though you thoughtfully created a trust to avoid this.
6. Review and think about your asset distribution. Does your trust still reflect your wishes for how you would like to distribute your assets? Again, life events such as births, deaths, marriage and divorce may impact the decisions you made about this.
7. Check your insurance policies. Does your life insurance still reflect an amount that would support your family if something happens to you? Has something happened in the past year that would require you increase that amount?
8. Are you still happy with your decision regarding who should administer your estate? Is he or she still willing to accept this duty? Has anything happened in the last year that would make you wonder whether this person is still able to perform this function? If you are in doubt, you may consider discussing this with the person you chose and make changes if necessary.
9. Update your family’s legacy.Each year you should update your written legacy whether it is in writing or recorded. Be sure to note family member milestones and accomplishments. This will most likely be the most valuable part of your estate plan so be sure to spend time on this.
10. Get an Estate Plan! Of course, if you do not have an Estate Plan, there is no better time to call our Firm at (704) 843-1446 to have one created for you.
As I tell my clients, your estate plan is a document that changes as your life changes. While every change in your life doesn’t mean that you need to update your estate plan, it is important to think through the past year’s events and experiences to make sure that your estate plan will still take care of your family just has you planned.