Estate Planning Documents to Review at the Beginning of Each Year
The start of a new year is an ideal time to review your estate planning documents. Even if your plan was carefully crafted in the past, life changes, new laws, and evolving priorities can make updates necessary. Regular reviews help ensure that your wishes are clearly documented, your loved ones are protected, and your retirement plan remains coordinated with your long-term goals.
Working with a retirement planner or estate planning professional can make the review process more effective, ensuring that all documents reflect your current intentions and circumstances.
Key Estate Planning Documents to Review
Wills
Your will specifies how your assets will be distributed after your passing. Life changes such as marriage, divorce, the birth of grandchildren, or the sale of significant assets may require updates to ensure your wishes are accurately reflected.Trusts
If you have established a trust, review its provisions annually to ensure it continues to align with your financial and family goals. Changes in assets, beneficiaries, or tax laws may necessitate adjustments.Powers of Attorney
Powers of attorney designate someone to make financial or legal decisions on your behalf if you become unable to do so. Confirm that your chosen representatives are still appropriate and that the documents remain valid under current laws.Healthcare Directives
Advance healthcare directives outline your medical preferences and appoint a healthcare proxy to make decisions if you are incapacitated. Reviewing these documents annually ensures that they reflect your current wishes and any changes in your healthcare situation.Beneficiary Designations
Many accounts, including retirement accounts, life insurance policies, and annuities, allow you to name beneficiaries. Review these designations at the beginning of each year to ensure they align with your estate plan and reflect any life changes.Letters of Instruction
While not legally binding, letters of instruction can provide guidance to your family or executor about your wishes, preferences, and important contacts. Updating this document annually ensures it remains accurate and helpful.
Why Annual Reviews Matter
Life events, financial changes, and legal updates can all impact your estate planning documents. An annual review ensures that:
Your assets are distributed according to your current wishes
Your chosen representatives remain appropriate
Beneficiary designations and trusts are coordinated with your overall retirement plan
Your loved ones are protected and your intentions are clear
Working With a Retirement Planner
A retirement planner can help coordinate estate planning with your broader retirement strategy. They provide guidance on aligning income planning, healthcare planning, and asset distribution to support your long-term goals. By working with a professional, you can ensure that all documents work together cohesively and that nothing is overlooked.
Start the Year With Clarity and Confidence
Reviewing your estate planning documents at the beginning of each year provides peace of mind and clarity. By ensuring that wills, trusts, powers of attorney, healthcare directives, and beneficiary designations are current, you protect your loved ones, safeguard your legacy, and maintain alignment with your retirement goals.
Meeting with a retirement planner or estate planning professional early in the year ensures that your plan is updated, coordinated, and ready to support your long-term security and the retirement lifestyle you envision.
