The start of a new year often inspires a renewed focus on one’s personal priorities. Estate planning is an area of concern that many people intend to address “someday” but ultimately postpone. Asking yourself what your estate planning New Year’s resolutions should be can be the first step toward protecting your family, your assets and your wishes.
For example, you might benefit from resolving to finally create an estate plan if you do not already have one in place. Without basic documents such as a will, powers of attorney and health care directives in place, important decisions may be left to the court or governed by default laws that do not reflect your values and desires. Creating a plan now can empower you to provide clear instructions for whenever your estate plan becomes an urgent concern for your loved ones.
Alternatively, you may benefit from reviewing and updating your existing documents. Life rarely remains steady from year to year. Marriage, divorce, births, deaths, business growth, retirement and/or relocation can all affect how an estate plan should function. Even if no major life event has occurred recently, changes in laws or asset values may warrant adjustments. An outdated plan may inspire confusion or unintended outcomes, even if it was well-drafted.
Beyond the bare minimum
Naming and confirming beneficiaries is another area of concern that may warrant “a resolution for the coming year” treatment. Retirement accounts, life insurance policies and payable-on-death accounts often pass outside of a will or trust. If beneficiary designations are outdated or inconsistent with the rest of your plan, assets may go to the wrong people. Making this review a New Year’s resolution can help to prevent related disputes and delays, should something happen to you before the next New Year dawns.
Many people also resolve to more effectively organize information for loved ones. Creating a clear list of assets, accounts, digital access and professional contacts can be a gift to family members who may need to step in during an emergency or after death. Good organization helps reduce confusion and can more effectively allow your estate plan to function as intended.
Estate planning New Year’s resolutions are about taking control rather than avoiding difficult topics. Working with an experienced estate planning legal team can help transform good intentions into effective, legally sound plans.