How to Review Your Estate Plan

The slower summer months are a prime opportunity to review your estate plan and make sure everything is up to date. It also gives you time to get things in order before the end of the year, and make any important changes.

What is an estate plan?

An estate plan is more than a will. It’s the complete plan you have in place for your money and property when you pass away. 

Your estate plan might include your last will and testament, 

instructions for your care and funeral plans if you become incapacitated or die, instructions for your business if you have one, guardians and care for your children or pets, and instructions on how to access any important information your loved ones might need access to. 

I go more in depth about what your estate plan should include in this estate planning post.

How do you organize an estate plan?

Summer is a great time to put your estate plan together because you probably had to dig up some important documents for your taxes in the spring. You can gather those documents while they’re still fresh in your mind.

First, if you’ve had any major changes like buying a new house or starting a new job, make sure you add any pertinent paperwork or important information to your estate plan.

You should also think about what your loved ones might need access to if you died or became incapacitated. Many people put this process off because it’s not pleasant to think about, but the truth is, being prepared is one of the best gifts you can give your loved ones. Loss is difficult enough, but having a plan in place can ease some of that burden.

You’ll also want to regularly update beneficiaries and any changes to your will or trust. For example, maybe it’s been awhile since you checked over your will, and your kids are now of age to become successor trustees. That’s an important piece to update when you can.

I also have an estate planning organizer that I give to my clients to simplify the process. Here are some examples of what that includes:

What happens if you don’t have an estate plan?

If you die without an estate plan, typically your estate will end up in probate court. This does vary by state, however, so check the rules for your home state.

In many states, your estate automatically goes to the beneficiary you’ve named on certain assets, your spouse, or to your children or parents if you’re single. If you have children, a will helps dictate who has control over their inheritance until they turn 18, so it’s very important to spell that out. 

What happens if you don’t have an estate plan in Massachusetts and New Hampshire?

In Massachusetts, your assets will go to your closest relatives under the state’s ‘intestate succession’ laws. It’s the same in New Hampshire, where your assets would be subject to NH intestate succession laws.

In either case, if you don’t have a plan in place, the state will create one for you. And it might not be what you would want. That’s why it’s well worth it to create an estate plan, and update it on a regular basis, or when things change.