The holiday season and end of the calendar year in general are great times to review your estate plan. Taking a few minutes to look over your will, trust or beneficiary designations can help to ensure that these documents are in order and still help you accomplish your goals.
Make sure everyone is accounted for
If you are expecting a child or grandchild, you’ll want to include those new family members in your will or trust. You may also want to adjust a will or trust to account for the fact that your current children or grandchildren are getting older. After they reach the age of majority, you can alter your estate plan to allow them to manage property directly as opposed to under the auspices of a custodian. The end of the year may also be a good time to have conversations with your heirs about charitable giving and how it fits into your legacy and theirs as well.
Defining family
It’s common for people to want to keep assets within the family as much as possible. However, it can be difficult to define exactly who is a member of your family. While children and grandchildren are typically included, you may be hesitant to include an in-law in your plan. You can protect property from an in-law by including it in a trust or by taking other estate planning steps to establish its status as separate property.
Reviewing and updating your estate plan on an annual basis may make it easier to carry out after you pass away. If you have a trust, reviewing it regularly can make it easier to manage your affairs while you’re still alive. In most cases, you can make changes to a plan at any time if you’re of sound mind.
