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Spring is a time for fresh starts and clean slates. As you dust off your shelves and organize your closets, consider taking a closer look at your estate plan. Just like your home, your estate plan needs regular attention to stay in order. A plan that worked a year ago might not reflect your current wishes, relationships, or financial situation.
Many people believe that once their estate plan is in place, there is nothing more to think about. In reality, an estate plan is not a one-time project. It is a living set of documents that should change with your life. If something happens and your estate plan is out of date, it can create confusion, conflict, and legal hurdles for your loved ones.
Here is what you should review each year when revisiting your estate plan.
Personal Changes that Affect Your Plan
Life can change quickly. Births, marriages, divorces, and deaths are all reasons to update your estate plan. If you have recently welcomed a child or grandchild, you may want to name them as a beneficiary or guardian. If you have gone through a divorce or lost a spouse, you will want to remove outdated designations to avoid unintended consequences.
Even smaller changes in your family or relationships may call for updates. Perhaps you have reconnected with a family member or want to include a close friend in your plan. These personal updates are just as important as financial changes when reviewing your estate documents.
Update Beneficiary Designations
Many assets, like retirement accounts, life insurance policies, and payable-on-death bank accounts, pass directly to named beneficiaries. These designations operate outside of your will or trust, so it is important to keep them up to date. If a former spouse is still listed, for example, they may receive that asset, regardless of what your estate plan says.
Each spring, check the beneficiary information on your accounts. Make sure the people listed are still who you want to receive those assets. If a beneficiary has passed away or you want to change the division of your assets, now is the time to update those forms.
Review Your Fiduciary Choices
Your estate plan likely names one or more fiduciaries. These may include an executor, a trustee, a guardian for minor children, or someone with power of attorney. These roles carry a great deal of responsibility.
Ask yourself whether the people you have chosen are still the right fit. Are they still willing and able to serve? Have your relationships with them changed? If the answer to any of these questions is yes, you should name new individuals who can handle the job when the time comes.
Check Your Financial and Legal Documents
Along with your will or trust, your estate plan may include documents such as a power of attorney, a healthcare directive, or a living will. These are just as critical as your will because they allow someone to make decisions for you if you cannot speak for yourself.
Review these documents to make sure they reflect your current preferences. For example, you might have strong views about medical treatment that have changed over time. Or you may want a different person to make financial decisions for you in case of incapacity.
Plan for the Future
An annual estate plan review is not just about looking backward. It is also a chance to plan ahead. If you have purchased new property, started a business, or experienced a financial shift, your estate plan may need to account for those changes. You can also use this time to explore strategies to reduce taxes, avoid probate, and preserve your assets for future generations.
Schedule a Review with an Illinois Estate Planning Attorney
Estate planning is not only about what happens after death. It is about protecting yourself and your loved ones now and in the future. At Bielski Chapman, LTD., we can help you update your documents to reflect the life you are living today.
To schedule a free 15-minute consultation, contact our office at (312) 583-9430 or schedule a consultation online.