People often feel that a review of the last year is in order when the new year begins. Whether it is from a business or personal perspective. Did you meet your career goals? Maybe you were working towards a promotion or raise, or both. What about your personal goals? Did you intend to volunteer or help your community in some way? It can be a time for patting yourself on the back for the new job or feeling a little regretful that you never found the time to engage in a volunteer activity.
When an estate planning attorney like me suggests a year in review, it shouldn’t cause you any regrets because it’s more like taking inventory of your life. Let me explain.
Life comes at us pretty fast sometimes; I’m sure you agree. Whether it is business or personal, changes may have happened you just didn’t see coming. Or maybe you did. The point is that we become very involved in the day-to-day minutiae of it, and before you know it, it’s been more than a year, maybe two or three, before you have an opportunity to reflect on those changes.
I’m encouraging you right now to answer the following 9 questions about what happened in your life in 2023.
<![if !supportLists]>1. <![endif]>Did you get married or divorced?
<![if !supportLists]>2. <![endif]>Did you have or adopt a child?
<![if !supportLists]>3. <![endif]>Did your spouse pass away?
<![if !supportLists]>4. <![endif]>Did you come into a significant inheritance or acquire major assets?
<![if !supportLists]>5. <![endif]>Did any of your beneficiaries pass away?
<![if !supportLists]>6. <![endif]>Did you experience a significant parting of the ways with a beneficiary or designated executor?
<![if !supportLists]>7. <![endif]>Did you move out of state?
<![if !supportLists]>8. <![endif]>Did you gain a new grandchild?
<![if !supportLists]>9. <![endif]>Did you get a new pet?
If you answered yes to one or more of the 9 questions, it is in your best interest, as well as that of your loved ones, to update your estate plan accordingly. Or if you don’t have an estate plan, this is the ideal time to take that step.
Here’s a quick overview of some of the consequences if any of those things happened in your life and you don’t update your plan or worse, have no plan.
Suppose you divorced and didn’t remove your ex as a beneficiary for some assets. In that case, the ex may enjoy whatever you originally had planned before the divorce. Is that what you want?
If you were blessed with a new grandchild, but you unexpectedly died before updating your will, perhaps your other grandchildren will inherit but not the new little one. Is that fair? If you’ve named specific grandkids in your plans, it’s time to make updates – none of us know what tomorrow holds.
Suppose you die without legally updating your beneficiaries (for your insurance policy or investment accounts, for example). In that case, a beneficiary with whom you had a falling out will inherit whatever you had initially planned because you didn’t take the time to make the change. Even if you aren’t speaking anymore.
Perhaps you are single and have adopted a new furry companion. Sadly, if you don’t make arrangements in advance as to who should care for your new buddy if you can’t… going to the local shelter is one possible outcome … another, worse, one, being put down because no one wants to take it on. You can not only specify who should be the caregiver, but you can leave funds for its care. But the poor pet’s future might be dim if you don’t.
Were you transferred out of state for your job? Your existing estate plan and will should definitely be reviewed and updated if needed to meet your new state of resident’s requirements. All states have their own laws, so it’s essential to make sure your estate plan will be valid; otherwise, there could be some unpleasant surprises for your heirs.
I could go on, but I won’t. The examples I have provided illustrate that if you have had any changes during the past year, it might be time to work with an estate planning attorney to update (or create) your estate plan accordingly. Your loved ones will appreciate the time and effort as it will spare them a lot of stress and potentially money, but having your proverbial “ducks in a row,” just in case.
Please call me so we can have a quick “Your Year in Review” meeting to determine what might be needed to ensure you’ve done everything possible to protect your assets and loved ones. Call me at 513-399-7526 or visit my website, www.davidlefton.com.