As we begin a new year, it’s a great time to take a step back and evaluate your estate plan. Many individuals overlook the importance of regularly updating their estate plan, assuming that once it’s set, it’s good for life. However, estate planning is an ongoing process, especially as your life circumstances change.
Starting the year with a comprehensive estate plan ensures that you have control over your financial and personal affairs, even if the unexpected happens. Here’s how to get started:
1. Review Your Existing Plan: If you already have an estate plan in place, it’s time to review it. Are your beneficiaries still the same? Has your financial situation changed? If you’ve had major life events like marriage, divorce, or the birth of a child, it may be time to make adjustments.
2. Create or Update Your Will and Trusts: A will is the foundation of any estate plan. It dictates how your assets are distributed upon your death. A trust, on the other hand, can be used to avoid probate and ensure your assets are distributed privately and efficiently. Make sure these documents reflect your current wishes.
3. Consider Healthcare and Financial Power of Attorney: Designating someone to manage your healthcare decisions and finances in case you become incapacitated is a vital aspect of your plan. Without these documents, your family may struggle to manage your affairs.
4. Update Your Beneficiary Designations: Insurance policies, retirement accounts, and bank accounts may have beneficiary designations that override your will. Ensure that these are up-to-date and in line with your estate plan.
Start the year with a clear and updated estate plan. Schedule a consultation with an attorney at Great Lakes Estate Planning to ensure your legacy is protected in 2025 and beyond.