Spring Cleaning Your Estate Plan: What to Review Annually

As the season of renewal arrives, it’s time to turn your focus to more than just decluttering your home. Spring is the perfect time to review and refresh your estate plan to ensure it aligns with your current goals and circumstances. Regular updates to your estate plan are essential to avoid potential complications for your loved ones in the future. Here’s a comprehensive guide on what to review annually in your estate plan with insights from a Nashville estate planning attorney!

Update Personal Information

One of the first steps in your annual review is to ensure all personal details in your estate plan are current. Changes in your family structure, such as marriages, divorces, births, or deaths, can significantly impact your plan. For example, you may need to update your will, trusts, or beneficiary designations to reflect these changes.

Questions to Ask:

• Are all named beneficiaries still correct?
• Have you had any major life changes in the past year?
• Are guardianship assignments for minor children still accurate?

Review Your Will and Trusts

Your will and any established trusts are critical components of your estate plan. These documents dictate how your assets will be distributed and can help minimize disputes among family members. During your review, check for outdated provisions or gaps.

Key Considerations:

• Do your will and trust reflect your current wishes?
• Are the appointed executor and trustee still the best choices?
• Have new assets been properly accounted for?

Not sure if your will or trusts are up-to-date? Contact a Nashville estate planning attorney for guidance and peace of mind.

Assess Beneficiary Designations

Beneficiary designations on retirement accounts, life insurance policies, and payable-on-death accounts take precedence over your will. It’s crucial to confirm that these align with your overall estate plan to prevent conflicts.

Steps to Take:

• Verify all beneficiary information.
• Remove individuals who are no longer relevant (e.g., an ex-spouse).
• Add any new beneficiaries if applicable.

Evaluate Power of Attorney and Health Care Directives

Your power of attorney and health care directives empower trusted individuals to make decisions on your behalf if you’re unable to do so. These documents should be reviewed annually to ensure they’re still valid and assign the right people.

Questions to Reflect On:

• Is your designated power of attorney still trustworthy and capable?
• Are your health care preferences clearly outlined?
• Do these documents comply with current state laws?

Ensure your directives reflect your current wishes. Consult with a Nashville estate planning attorney for assistance.

Review Tax Implications and Laws

Tax laws change frequently and can impact your estate plan significantly. Reviewing your plan with an eye on the latest legislation can help you avoid unnecessary tax burdens.

Focus Areas:

• Are you taking full advantage of estate tax exemptions?
• Have recent tax law changes affected your strategy?
• Should you consider gifting to reduce your estate size?

Protect Digital Assets

In today’s digital age, your estate plan should include provisions for managing digital assets such as online accounts, social media profiles, and cryptocurrencies. These are often overlooked but can hold significant financial or sentimental value.

Steps to Take:

• Create a list of all digital assets and login credentials.
• Assign a trusted individual to manage these assets.
• Include instructions for handling these accounts in your plan.

Secure your digital legacy. A Nashville estate planning attorney can guide you through this process.

Schedule Regular Professional Reviews

While annual personal reviews are essential, consulting with a professional ensures nothing is overlooked. A Nashville estate planning attorney can identify gaps, recommend updates, and help you navigate complex legal changes.

Why It Matters:

• Professionals stay updated on legal and tax changes.
• They can provide tailored solutions for unique situations.
• Regular reviews ensure your plan evolves with your life.

About Rochford Law & Real Estate Title

Rochford Law & Real Estate Title is dedicated to helping clients in Nashville and beyond create and maintain effective estate plans. Our team of experienced attorneys provides personalized guidance to ensure your plan reflects your wishes and protects your loved ones. 

Visit us at Rochford Law & Real Estate Title to begin your estate plan review today!