It’s the most wonderful time of the year, which means we’re also approaching the end of the calendar year – a great time to review your estate plan.
An estate plan can easily be overlooked as you go about your busy daily life. Taking some time to review it annually ensures that your wishes are up-to-date and your affairs are in order for your heirs. So, before the New Year, be sure to check the following off your list:
- Your Will & Trust
Review these legal documents to address any changes that may have occurred since you last revised them. In particular, confirm that your designated beneficiaries are correct and your assets are accurate. Additionally, consider whether there have been any life changes that need to be incorporated since your will and trust were last updated, such as the birth or death of a beneficiary; a new marriage; or a divorce.
- Powers of Attorney & Health Care
Here again, review your forms to ensure that the right person still has authority to make decisions on your behalf in the event that you’re unable to do so. While you’re at it, read through the document to verify that the scope of power aligns with your wishes, as well. - Accounts & Policies
Some accounts and policies – such as 401ks, IRAs, retirement accounts and life insurance policies – are solely directed by the named beneficiaries. So, similar to your will and trust, ensure that your designated beneficiaries are correct for these types of accounts.
Separately, you might also consider maximizing your retirement account contributions prior to the end of the calendar year in order to receive the most benefit come tax time.
- Taxes
This is also the time of year to make any gifts or charitable contributions that you may have been considering in order to reduce your tax burden for this tax year.
Depending on the size of your estate, you also might want to speak with a professional about tax planning for your estate.
- Real Estate
Property can be especially difficult to transfer if the real estate holdings are not properly filed. Specifically, check to see that the titles to any real estate you own are correctly titled for your ownership. This may help your heirs avoid probate.
Additionally, speak with a legal professional about Proposition 19, which relates to property taxes on inherited real estate. - Other Passwords & Accounts
Nowadays, there’s often a digital component to one’s life, as well. Ensure that your loved ones have access to your photos, contacts, files and more after you pass away. Learn more about Transferring Online Profiles After Death.
Contact MeyerPink Law at (209) 886-4131 or [email protected] for assistance with any of these estate-related documents.
