As fall approaches, it’s an excellent time to refresh your estate plan and ensure your financial and personal affairs are in order. Here’s a detailed checklist to help you get organized:
1. Review and Update Beneficiaries
As life evolves, so might your preferences for who inherits your assets. Take the time to review the beneficiaries named in your will, trust, retirement accounts, and life insurance policies. Have there been any significant life changes since your last review, such as a birth, death, marriage, or divorce? If so, update these documents accordingly. If beneficiaries are not updated, outdated designations may cause unintended consequences.
2. Evaluate and Update Your Will and Trust
Ensure that your will or trust reflects your current wishes and the realities of your assets. Revisit these documents to confirm they cover all major aspects of your estate, including how your property will be distributed, who will care for your minor children, and how debts will be settled. If you’ve acquired significant assets, such as real estate or investments, these should be reflected in your estate plan.
3. Healthcare Directives and Power of Attorney
Fall is a good time to revisit your healthcare directives and ensure your medical preferences are up-to-date. Your healthcare power of attorney and living will are essential for outlining how medical decisions should be made if you’re unable to communicate. Review who you’ve appointed to make these decisions, and make sure they’re still the best fit for the role. Update your financial power of attorney as well to ensure the right person is making critical financial decisions on your behalf.
4. Reassess Asset Ownership and Titling
Ownership titling is an often-overlooked aspect of estate planning that can have big consequences. Improperly titled assets could end up in probate, delaying their distribution. Ensure your real estate, bank accounts, and other significant assets are properly titled to reflect joint ownership or other designations that bypass probate. You may want to consider titling property in the name of a trust if your estate plan includes one.
5. Review Life Insurance Needs
Your life insurance policy should still align with your current financial goals and family needs. As children grow older or you reach retirement, your need for life insurance coverage may shift. Reassess your policy to ensure it’s sufficient to cover estate taxes, debts, or to provide for your loved ones in the event of your passing.
6. Revisit Your Business Succession Plan
If you’re a business owner, your estate plan must include a solid succession plan. What happens to your business when you’re gone? Fall is a perfect time to revisit or establish a plan that outlines who will take over your business and under what terms. Consider any recent changes in your business’s structure or financial health that may require adjustments.
7. Address Tax Planning
The end of the year is fast approaching, and tax planning is essential for your estate. Estate taxes, gift taxes, and income taxes can significantly impact the wealth passed to your beneficiaries. Consult with your financial advisor or estate planner to assess how potential changes in tax laws might affect your estate and strategize ways to minimize your tax liability.
8. Organize Your Documents
Organization is key to a smooth estate administration. Gather all of your important documents—your will, trust, deeds, insurance policies, financial account information, tax returns, and any other relevant paperwork—and store them in a secure, easily accessible location. Make sure your loved ones know where to find them in case of an emergency.
9. Consider Charitable Giving
If charitable giving is part of your estate plan, fall is an ideal time to reassess the organizations you want to support. You might consider setting up a charitable trust or including specific bequests in your will. This can help ensure your legacy supports causes important to you, while also potentially providing tax benefits to your estate.
10. Communicate Your Plan with Your Family
One of the most crucial aspects of estate planning is communication. Ensure your loved ones understand your wishes and the details of your estate plan. Having open conversations about your intentions and who will be responsible for what roles (such as executor, guardian, or power of attorney) can prevent conflicts later on and provide peace of mind for everyone involved.
Final Thoughts As the leaves begin to change and the air grows crisp, take the opportunity to refresh your estate plan. By staying on top of these essential steps, you’re ensuring that your assets are protected, your loved ones are cared for, and your legacy is secure. Fall is the perfect time to reflect, reorganize, and prepare for the future ahead.
Don’t wait—use this checklist as your guide and take action today! The Davis Schilken, PC team is here to help! Book your no obligation meetings with one of our highly skilled attorneys (303)670-9855. We make estate planning simple.