An estate plan is made up of many different parts and documents. Because of all these different elements, you may wonder what you should focus on when reviewing it.
The fact is, there are some parts of your estate plan that should be reviewed more often than others. Knowing the most important elements to look at and update as needed will help ensure that you keep things current and accurate.
There are steps you can take to make reviewing your estate plan simple and streamlined. To do this, you need to ensure that you focus on the key elements, financial information and figures.
For most estate plans, the key elements will be the will and trust(s). The will is what dictates what happens with your assets when you pass away. Trusts serve a variety of purposes. You can use trusts to designate what assets a person receives and when they receive them.
Beneficiaries and administrators
You need to make sure nothing has changed with the beneficiaries you have named. By reviewing this information at least every few years or when things change in your family, you can remove or add people as needed.
You also need to consider whom you have named as executor, trustees and to have power of attorney. Be sure the people named are still suited to the role.
You should also review all financial-related information. For example, if you sell or buy property or open new accounts, you’ll likely need to update your estate plan.
By knowing what factors to focus on when reviewing your estate plan, you can make the process less overwhelming. You can also seek legal guidance for this process.