The Essential Estate Plan Review Checklist: Don’t Miss the Obvious

When it comes to estate planning or managing trust documents, there’s a vital component that often gets overlooked: the obvious. Getting caught up in the complexities of tax laws, investment strategies, and legal jargon is easy. However, failing to recognize the simple yet significant life changes that can substantially impact an individual’s estate plan can lead to unforeseen risks. Advisors play a crucial role in reminding clients of this and should regularly connect to ensure that their client’s estate plans are up-to-date and reflect their current circumstances, thereby mitigating potential risks.

Here’s a checklist of 10 common life changes that should prompt a review of your estate plan:

Estate Plan Review Checklist

1. Change in Tax Laws: Keep abreast of tax reforms, as they can influence the value of your estate and the amount your beneficiaries will receive.
2. Marriage or Divorce: Your partner or ex-partner could have legal claims to your assets, or you may need to update your beneficiaries.
3. Birth or Death in the Family: The arrival of a new family member or the passing of a loved one can significantly alter your inheritance plans.
4. Move to a New State: Different states have different laws regarding estate taxes and inheritance rights. A move could necessitate a thorough review.
5. Significant Changes in Economic Circumstances: Whether it’s a windfall or a downturn, changes in your financial situation should always trigger an estate plan review.
6. Change in Job: This could affect your pension, retirement plans, insurance benefits, and even your list of beneficiaries.
7. New Health Issues: A decline in health might prompt the need for different estate planning tools, like a medical power of attorney or a living will.
8. Changes in Relationships: If you have named a friend or family member as a fiduciary or beneficiary and your relationship changes, your estate plan should be updated to reflect this.
9. Resolution of Legal Issues: The settlement of a lawsuit or the resolution of a legal claim could affect your financial situation and, consequently, your estate plan.
10. Changes in Life Insurance: Any changes in your life insurance policy, like the amount, the beneficiaries, or the provider, should be reviewed within your estate planning documents.

These points may seem obvious upon reading, but you’d be surprised how often they slip through the cracks during planning discussions. Advisors have the responsibility to ensure that their client’s estate plan reflects their current wishes and situations. A routine review of these points using a checklist like this, at least once a year, can save a lot of stress and money in the long run. Please don’t wait for change to remind you; make it a point to review regularly and keep the obvious in sight.

If you are a Legacy client and have questions, please do not hesitate to contact your Legacy advisor. If you are not a Legacy client and are interested in learning more about our approach to personalized wealth management, please contact us at 920.967.5020 or connect@lptrust.com.

This newsletter is provided for informational purposes only.
It is not intended as legal, accounting, or financial planning advice.