1. Review Your Estate Plan Documents
- Will: Confirm that it reflects your current wishes, including asset distribution and guardianship for minors.
- Trusts: Review the terms, beneficiaries, and funding status of any trusts.
- Power of Attorney (POA): Verify the appointed agent is still appropriate and willing to serve.
- Advance Healthcare Directive: Ensure your healthcare preferences are clearly stated and your healthcare proxy is still suitable.
2. Evaluate Beneficiary Designations
- Retirement Accounts (401(k), IRA): Ensure listed beneficiaries are current.
- Life Insurance Policies: Check that the primary and contingent beneficiaries are accurate.
- Payable-on-Death (POD) or Transfer-on-Death (TOD) Accounts: Verify designations on bank and investment accounts.
3. Assess Financial Accounts and Property Titles
- Joint Accounts: Review ownership and rights of survivorship.
- Property Deeds: Confirm titles align with your estate planning strategy (e.g., owned by a trust).
4. Consider Changes in Personal Circumstances
- Family Changes: Births, deaths, marriages, or divorces may require updates.
- Executor or Trustee Changes: Ensure your chosen individuals are still the best fit.
- Health Changes: Adapt your plan for any new medical or care needs.
5. Review Tax Implications
- Estate Tax Thresholds: Ensure your plan addresses current federal and state estate tax laws.
- Gifting Strategies: Consider making tax-free gifts to reduce your taxable estate.
6. Update Digital Asset Plan
- Online Accounts: Include updated passwords and access instructions for email, social media, and financial platforms.
- Digital Legacy: Designate someone to manage your digital presence after death.
7. Address Business Interests
- Succession Planning: Ensure business transition plans are in place if applicable.
- Buy-Sell Agreements: Review terms and funding methods.
8. Secure and Share Your Plan
- Document Storage: Store originals in a secure location (e.g., safe or safety deposit box).
- Access for Key Parties: Ensure your executor, POA, and trustees know where to find documents.
9. Meet with Professionals
- Estate Planning Attorney: Discuss updates to laws or changes in your circumstances.
- Financial Advisor: Align your investments with your estate plan.
- Tax Advisor: Confirm your plan minimizes tax liabilities.
10. Reflect on Your Legacy Goals
- Charitable Giving: Consider incorporating charitable donations.
- Family Values: Ensure your plan reflects your wishes and communicates your values.
By performing this review annually, you can start the new year with confidence that your estate plan is current and complete.