Dust Off the Documents: Why Your Estate Plan Needs a Check-Up
We often treat estate planning as a one-and-done task. You sign the papers, file them in a safe deposit box, and breathe a sigh of relief knowing your affairs are in order.
However, an estate plan is meant to be a living strategy, not a static archive. As your life evolves, your documents should evolve with it. An outdated plan can sometimes be just as complicated for your loved ones as having no plan at all so it's time to pull those documents out of the drawer and give them a thorough review.
1. The "Big Three" Essentials
When reviewing your plan, focus immediately on these three core components:
The Will (or Living Trust): Does this still reflect your assets and your wishes? If you have had more children or grandchildren since it was drafted or if your relationships with named heirs have changed, an update is critical.
Power of Attorney (POA): These documents designate who can make financial and medical decisions on your behalf if you are incapacitated. Ensure the person you appointed five years ago is still the person you trust most today (and that they are still willing and able to serve).
Beneficiary Designations: This is the most common oversight. Accounts like 401(k)s, IRAs, and life insurance policies transfer directly to the named beneficiary, bypassing your will entirely. If your will says your spouse gets everything, but your IRA still lists an ex-spouse or a deceased parent, the specific beneficiary designation on the account usually wins.
2. Triggers for Review
If you have experienced any of the following life events since you last signed your documents, a review is highly recommended:
Marital Changes: Marriage, divorce, or remarriage.
Family Additions: The birth or adoption of a child or grandchild.
Loss: The death of a spouse, beneficiary, or executor.
Relocation: Moving to a new state (laws regarding wills and POAs vary by state).
Financial Shifts: A significant increase or decrease in assets, or the purchase of a business.
18th Birthday: If you have children who have recently turned 18, you generally no longer have legal access to their medical or financial records without a signed POA and HIPAA release.
3. The Gift of Clarity
Ultimately, keeping your estate plan current is an act of care. It provides your family with a clear roadmap during emotional times, preventing conflict and confusion.
Take ten minutes this week to locate your documents. Check the dates and read the names listed as beneficiaries and guardians. If anything feels outdated, it’s time to schedule a conversation with your estate attorney.
Questions? While we do not draft legal documents, we can review your current documents to ensure they align with your broader financial goals. We are here to help so set up a free consultation today!
