It is very important to periodically take the time to review your estate plan and make sure your existing documents are still appropriate and continue to meet your needs. 

This is a task that Beacon reminds clients to address about every other year.  So what are those things that need to be reviewed?  Here is a checklist of the basics.

Review of Your Will

You may recall that a person’s will is the document that directs the distribution of a person’s assets when they pass away.  Here are a few specific items that should be reviewed periodically:

1. The executor (and successor executor) of the will.  The executor is the person who is responsible in handling the administrative aspects of settling your estate.  Is this person still appropriate?  Do they have the knowledge and capacity to handle making important financial decisions should the need arise?  

2. The basic terms of the will.  Do you still like the  way that your will distributes your assets?  Have there been family changes (births/deaths) that could adversely impact the way in which your assets are distributed?  You should also confirm that your will has been signed, notarized and is located in a place that is known by your executor. We suggest updating your will if it is more than 10 years old.

3. The guardian for your children. You should confirm that the guardian named in your will is still appropriate and the best choice.  Is this person willing and able to handle the important responsibility of raising your children?

Review of Trusts and Trust Provisions

There are many types of trusts and they are created for a variety of reasons.  For those who have executed trust provisions as a component of their estate plan, it is important to reassess the appropriateness of trusts. 

In addition to reviewing the purpose and role trusts serve, you should also review the trustees.

Who is the trustee and successor trustee of your trust?  Are they still a good choice?  If you have named a corporate trustee is this still a good option?  What is the corporate trustee’s fee schedule and is it reasonable?

Review Durable Powers of Attorney

A durable power of attorney is a document that assigns someone (known as the attorney-in-fact)the ability to make financial decisions on your behalf in the event you are unable to do so.

You should confirm that the person you assigned this authority is still appropriate.  Do they have the wherewithal and ability to make sound financial decisions?  Have they moved to a location that would make it inconvenient for them to serve in this role?  Have you named an appropriate successor in the event your primary attorney-in-fact needed to resign?

You should also review and be comfortable with the type of authority this person may have.  Can they effect real estate transactions or borrow money?  Can they make gifts or open new accounts on your behalf?

Review Health Care Powers of Attorney

In the event you have a medical emergency, or are involved in an accident and can’t make medical decisions for yourself, who would step in to help?  If this person isn’t available at the time, who would be their back up?   Also, what type of authority does this person, your healthcare agent, have when it comes to potentially making end of life medical decisions?

While periodically reviewing your estate documents may not be an especially fun task, it is one that is very important and can have far reaching implications.  An estate plan that is consistent with your circumstances and wishes can also bring peace of mind to both you and your family.  Let us know if you have any questions or if we can help!