While the term “spring cleaning” is typically used in reference to projects around the house, spring is also a great time to make sure your estate planning documents are correct. Below we’ll go through our estate planning checklist to help you ensure you have what you need to protect yourself and your heirs.
We’ve covered estate planning before, but let me remind you, it’s not just for the rich and famous. Everyone needs to have some basic estate planning in place if they own any assets at all. So, let’s revisit those basics and see how you can clean them up.
Estate Planning Checklist: Advanced Healthcare Directive
First on the list is the Advanced Directive for healthcare, also known as a living will. This document allows you to appoint someone to make healthcare decisions for you if you’re unable to do so yourself. A living will component specifies your preferences if you’re being kept alive by artificial means – like whether you want a ventilator, CPR, a feeding tube, or just pain meds. It’s all about your personal choice.
From an estate planning checklist perspective, examine your current document. If it’s four or five years old, your situation may have changed. Maybe your children are older now or you’ve grown apart from the person you initially named. Consider if you want to appoint someone else as your agent, especially if the original person has moved away or you no longer have the same relationship. Ensure the person you choose can be there for you in an emergency and that you trust them to make the right decisions on your behalf.
Estate Planning Checklist: Durable Power of Attorney
Next, take a look at your durable power of attorney. In Georgia, if it was executed before July 2017, it’s time for an update to comply with new laws. Again, evaluate who you’ve named as your agent. If your spouse has passed away or you’ve had other significant life changes, you might want to name a different agent. Choose someone who will manage your financial affairs responsibly, paying your bills and not misusing your funds.
Estate Planning Checklist: Last Will and Testament
Your last will and testament is another crucial document. Life changes – deaths, divorces, marriages, estrangements, and the arrival of grandchildren – all impact your will. If such changes have occurred, don’t delay updating your will. This could involve an amendment called a codicil, or it might mean drafting a new will. The will is your declaration to the world about how you want your property distributed after your death, who you want in charge, and how you want your assets managed.
If, for example, a child has become disabled, you’ll need to set up a supplemental needs trust within your will to ensure they don’t lose their government benefits. Or, if your children are grown and you trust them to handle their inheritance without restrictions, you might simplify your will to state they receive their shares outright.
Now, let’s talk about bank accounts. If you add a child to your bank account, be careful. Often, bankers will add them as a joint account holder rather than an authorized signer. This means if you pass away, the account automatically belongs to that child, potentially excluding other heirs. I recently dealt with a case where this misunderstanding led to a significant legal battle. So, ensure your bank account designations reflect your true intentions.
Estate Planning Checklist: Beneficiary Designations
Also, review and update your beneficiary designations on life insurance, 401ks, IRAs, and other accounts, especially if your spouse has passed away. Make sure all your documents and accounts are current and align with your wishes. Lastly, if you have a safety deposit box, ensure someone you trust has access to it and knows where the key is. It’s a small but critical detail that can save a lot of trouble later.
Contact Us So We Can Help!
Every couple years you should gather all your documents and give them a thorough review. If anything needs updating, contact your attorney to make the necessary changes. If you need assistance with any components of the estate planning checklist above, complete this form or give us a call at (229) 226-8183. If you’d like to see this blog in video format, you can watch it below. Please be sure to SUBSCRIBE to our YouTube channel and click the bell notification button so that you’re notified each time we publish a new video.