The Estate Planning Checklist Every Family Should Review Annually

Creating an estate plan is an important step toward protecting your family and your future. But signing your documents is not the end of the process.

Life changes. Families grow. Assets change. Relationships evolve. And sometimes, the estate plan that made perfect sense several years ago no longer reflects your current circumstances or wishes.

That is why reviewing your estate plan annually is a simple but important habit.

You may not need to make changes every year, but taking the time to review these key areas can help ensure your plan continues to work the way you intended.

1. Review Your Will

Start with one of the most familiar parts of an estate plan: your will.

Ask yourself whether the people and instructions named in your will still reflect your wishes.

Have you gotten married or divorced? Have children or grandchildren been born? Has someone named in your will passed away? Have relationships changed significantly?

You should also review the person you selected to serve as executor. This person will have important responsibilities when administering your estate, so make sure your choice still makes sense.

2. Review Your Trust

If you have a revocable living trust or another type of trust, review its terms and make sure they still align with your goals.

Pay particular attention to who you have named as successor trustee and how you have instructed assets to be distributed.

But reviewing the document itself is only part of the process.

You should also make sure the appropriate assets have actually been transferred into the trust. Creating a trust without properly funding it may prevent the trust from accomplishing everything you intended.

3. Check Your Beneficiary Designations

Some assets pass according to beneficiary designations rather than the instructions in your will.

These may include retirement accounts, life insurance policies, certain investment accounts, and other financial assets.

Review the primary and contingent beneficiaries listed on these accounts every year.

This is especially important after a marriage, divorce, birth, death, or other significant family change.

An outdated beneficiary designation can potentially result in an asset passing to someone you no longer intended to receive it.

4. Review Your Powers of Attorney

Your financial power of attorney allows someone you trust to handle certain financial matters on your behalf if necessary.

Ask yourself whether the person you selected is still the right choice.

Is this person still willing and able to serve? Do you still trust them to make important financial decisions? Do they understand the responsibility?

It is much easier to address these questions now than during an emergency.

5. Review Your Healthcare Wishes

Your estate plan should also address who can make medical decisions for you if you are unable to make them yourself.

Review your healthcare documents and make sure the person you selected is still someone you trust to carry out your wishes.

It is also worth having a conversation with that person.

A document can provide legal authority, but a conversation can provide important context. Make sure the person making decisions for you understands your values, priorities, and wishes regarding your care.

6. Consider Changes in Your Family

Family changes are one of the biggest reasons estate plans need to be updated.

Think about what has happened within your family over the past year.

Have you welcomed a new child or grandchild? Has someone gotten married or divorced? Has a family member developed special needs? Has someone you planned to leave assets to passed away?

Even positive changes can affect how your estate plan should be structured.

7. Consider Changes in Your Assets

Your financial life can change significantly from year to year.

You may have purchased or sold real estate, started or sold a business, received an inheritance, opened new investment accounts, or experienced a significant change in your overall financial situation.

Make sure your estate plan accounts for major assets you have acquired and that ownership of those assets is structured appropriately.

8. Review Your Personal Property

Not every important inheritance has a large financial value.

Jewelry, family heirlooms, photographs, artwork, firearms, collections, and other personal belongings can carry tremendous sentimental value.

Consider whether your wishes for these items have changed.

Being specific about meaningful personal property can also help reduce confusion or disagreements among family members later.

9. Make Sure Your Family Knows Where Important Documents Are

A well prepared estate plan does little good if no one can locate it when it is needed.

Make sure the appropriate people know where your estate planning documents are stored and how they can access them.

You may also want to organize important information about financial accounts, insurance policies, property, trusted professionals, and other records your family may eventually need.

You do not necessarily need to share every financial detail today. But someone you trust should know where to find important information if something happens to you.

10. Ask Whether Your Plan Still Reflects What You Want

Finally, step back from the individual documents and ask yourself one simple question:

If something happened to me today, would this plan still accomplish what I want?

If the answer is yes, your annual review may simply provide peace of mind.

If you hesitate, it may be time to sit down with your estate planning attorney and determine whether updates are necessary.

Make Your Estate Plan an Ongoing Priority

Estate planning is not something you should create once and forget about.

Your plan should grow and change with your life.

Setting aside time once a year to review your documents, beneficiaries, assets, and wishes can help you catch potential problems before they become problems for your family.

At Arch Legacy Firm, we help families create and maintain estate plans that reflect their lives, priorities, and goals. If it has been a while since you reviewed your estate plan or your family has experienced a significant change, contact our office to schedule a consultation.