Estate Planning Essentials: Are Your Documents Up to Date?

Authored By: Travis Evans, CFP®

Estate planning is often thought of as a one-time task: sign the documents, store them safely, and check it off the list. In reality, it’s more like a living part of your financial plan – one that needs periodic attention to reflect your current life, relationships, and priorities.

The Core Documents

A will directs how your assets will be distributed and can name guardians for minor children or caretakers for pets. But if it’s been years since you reviewed it, life changes such as marriages, divorces, births, deaths, or significant shifts in your financial situation may mean it’s no longer accurate. Without a will, your state’s intestacy laws determine who inherits, and that outcome may be very different from your wishes.

Equally important are your powers of attorney, both for finances and healthcare. These documents name the people you trust to make decisions on your behalf if you cannot. Without them, your family may face costly and time-consuming legal hurdles at a moment when swift decisions are needed. For retirees, it’s also worth considering whether the people you’ve named years ago are still the best choice – adult children grow into the role, and sometimes spouses may no longer be able to serve due to age or health.

Beneficiary Designations Matter More Than You Think

Beneficiary designations on retirement accounts, life insurance policies, and other financial assets often carry more weight than people realize. These designations override your will because they’re part of a direct contract between you and the financial institution. That means an outdated name on a form can unintentionally direct money away from your intended heirs. For example, someone may carefully update their will after a divorce, but if the ex-spouse is still listed on a life insurance policy, that policy will still pay to the ex-spouse. It’s also common for people to update a primary beneficiary but neglect the contingent beneficiary, which can create confusion if both spouses pass away together. A quick check can prevent an expensive and painful mistake.

Trusts and Ongoing Review

For some families, trusts provide an additional layer of control. They can manage how and when assets are distributed, minimize taxes, or protect beneficiaries from creditors. Trusts can also be invaluable in more complex situations, such as blended families, second marriages, or caring for a beneficiary with special needs. If you already have a trust, verify that it’s funded properly and that its terms still serve your goals. A trust that isn’t reviewed or properly maintained can give a false sense of security.

As a rule of thumb, estate planning documents should be reviewed at least every three to five years, or sooner if there’s a major life event like a marriage, divorce, birth, or significant financial change. Estate planning is not just about avoiding disputes or taxes; it’s about ensuring your wishes are carried out and your loved ones are supported.

If it’s been more than a few years since your last review, now is the time to take a fresh look. We can help coordinate with your attorney or review your current setup to make sure it still aligns with your goals.