Time for a Check-Up: Is Your Estate Plan Still on Course?

Has it been too long since you have reviewed your estate planning documents?  Now is the time to find those documents and see if they still reflect your wishes.  Here are some specific things to review in the various documents that should be part of your estate plan:

1. Review Your Advance Health Care Directive 

• Does it still reflect your wishes about your health care decisions?
• Does it still reflect who you want as your agent?  Your agent has the legal right to make decisions on your behalf if you are unable to do so (such as comma, incapacity, etc.).
• Have you talked to your agent – do they even know they’ve been listed as your agent? To ensure your wishes are followed, be certain that the person you appoint to be your healthcare agent understands your wishes and will abide by them. If not, when can you talk with him/her – and where is the best place?
• What do you want your agent to understand?

2. Review Your Durable Power of Attorney for Finance

• Are you still comfortable with the financial powers that you are giving to your agent?
• Does it reflect who you want as your agent?
• Have you talked to your agent – do they even know they’ve been listed as your agent?  
• Do they understand their duties?  Are they able and willing to serve in this role?

3. Review Your Will and Your Trust Documents

• Do they still reflect who you want as your beneficiaries?
• Do they still reflect who you want named as your executor (will) and/or successor trustee (trust)?
• Have you talked to these named agents?  Do they know they’ve been named and have agreed to do so?  Do they understand their duties?  Are they able to perform these duties?
• Do they understand what you want in terms of your legacy?

4. Review Your IRA, 401k, Life Insurance or Annuity Beneficiary Designations

• Do these accounts still reflect who you want as your beneficiaries?  Are named beneficiaries still living?  Note that these accounts pass outside your will or trust; account administrators will only send money to beneficiaries specifically named and documented on company beneficiary designation forms or account application paperwork for each account or policy.
• Have you fully considered tax implications with the named beneficiaries? And if you have named your trust, do you understand the special rules/tax considerations with doing so?
• Have you considered naming any charitable organizations for some of these assets given the legislative changes impacting inherited retirement accounts?