2023 is almost over.

The end of the year is a time for people to gather together with family and friends, to look back on the past 365 days, and to look forward to better, happier things.

People usually don’t want to think about things like—oh, I don’t know—their mortality. Death. Stuff like that.

However, it is crucial to regularly review and, if needed, update your estate plan. The end of the year is the perfect time to do that.

So before you completely wipe 2023 from your memory, ask yourself these 8 questions to make sure your estate plan is ready for whatever 2024 throws at you.

(You can also download a free PDF version of this checklist by clicking the button below.)

1. Will the right people get my “stuff”?

First, make sure your will or trust correctly states who will inherit your assets.

You should then review your pay-on-death (POD) beneficiaries on insurance policies, retirement accounts, and other assets.

Do they match the beneficiaries in your will or trust?

Related post: 7 Mistakes to Avoid When Naming Beneficiaries

Many people incorrectly believe that a legal document such as a will or a trust controls what happens to all of their assets.

However, beneficiary designations can override those documents.

For example: Your trust may say that your son John will receive your entire estate and that you are disinheriting your other son, David.

But if your insurance policy lists David as beneficiary, he will still get part of your estate.

You should therefore coordinate your beneficiary designations with your will or trust to make sure all of your assets are distributed the way you want.

2. Will the right people be in charge?

The representatives named in your estate planning documents are often given a great deal of power over you or your estate.

You chose them for a reason when you originally signed the document.

However, things can change.

If someone has recently made poor financial decisions, are you still confident in their ability to properly manage your assets?

If a representative has died or moved away, who can replace them?

You should also think about the personal circumstances or relationships of the people who will be in charge of you or your estate.

For example:

If you have several children but only one is named the Successor Trustee of your trust, is there a chance the other children may get upset and cause problems?

If your Attorney-in-Fact is in poor health, or if they are caretaker for a parent, will they also be able to effectively manage your needs if you became incapacitated?

These types of factors are important to keep in mind.

To ensure your estate plan will work as designed, make sure the representatives named in your documents are still the people you want to be in charge.

3. Should I get a living trust?

Wills and trusts are often misunderstood.

While they can do similar things, they work in very different ways.

Related post: What is the Difference Between a Will and a Trust?

The most notable difference between the two estate planning tools is that a will is subject to probate after your death, while a trust is not.

Your last will and testament still has to be probated after your death.

A probate in Oklahoma generally takes 6-12 months at minimum.

That means your heirs must wait at least 6-12 months to receive their inheritance, and your estate will be drained by 6-12 months of expenses.

The greatest of those expenses is the cost of the probate itself.

Probating a “simple” estate in Oklahoma typically costs at least $4,000-5,000 in attorney’s fees; however, the fees can easily be much greater.

I regularly see attorneys charging $10,000+ to conduct a probate.

On top of that, there are court costs, filing fees, publication costs, and a variety of other expenses, as well as an executor’s fee that can be many thousands of dollars.

This is all for a “simple” estate.

Attorney’s fees and costs can increase astronomically if the probate involves creditor issues, beneficiary disputes, complicated assets, or other irregularities.

Related post: 8 Reasons You Should Have a Living Trust

A trust can avoid that process (and those costs) altogether.

In doing so, you can maximize the assets available for your beneficiaries.

So when you think about whether you should keep your will or upgrade to a living trust, remember the costs of not having a trust.

4. Have my relationships changed?

Whether or not you realize it, your estate plan is built around your relationships.

Do you choose a stranger to inherit your estate or manage your finances if you are incapacitated? No, you choose someone you know and have a relationship with.

However, relationships can change.

It is important to consider how those changes impact your estate plan.

If you recently had a child (or if you have a minor child at all), have you made legal provisions for someone to serve as their guardian if something happens to you?

Related post: What is a Nomination of Guardian?

If you had a falling out with your Successor Trustee (or even if you have merely drifted apart), do you still want them to be in charge of your trust after your death?

If you were recently married, is your spouse listed in your estate planning documents?

If one of your beneficiaries develops a gambling addiction, do you still want him to receive his inheritance all at once?

Your estate plan is not etched in stone.

It can (and should) adapt to changes both in your own wishes and in the people who are involved in your plan.

5. How old is my Durable Power of Attorney?

A durable power of attorney is one of the most important estate planning documents you can have.

Think about it: A will or trust really only matters after your death.

But a durable power of attorney affects you during your lifetime.

Related post: What is a Power of Attorney?

You may therefore be happy to know that a durable power of attorney does not “go bad.” It stays in effect until you either revoke it or you die.

Nevertheless, health care providers may not accept a power of attorney that is more than a few years old.

This can be immensely frustrating.

There is some logic behind the health care provider’s perspective:

If you are trying to use a power of attorney for your mother that she signed, e.g., 7 years ago, how does the provider know she has not revoked it since then?

How do they know your mother did not sign a new power of attorney?

To avoid trouble—and, most of all, to make sure your documents work when you need them to—you should consider updating your power of attorney every few years.

6. Is my trust fully funded?

As I mentioned above, a living trust is a great way to avoid probate.

However, the fact that you have a piece of paper that says “living trust” on it does not mean too much by itself.

A trust only avoids probate if it is fully funded.

“Funding” a trust is the term for transferring assets into the trust, i.e., legally retitling and assigning assets into the name of the trust.

Related post: What is “Funding” My Trust and How Do I Do It?

Suppose John Doe owns a house, and the deed to the house says “John Doe” on it.

John then sets up The John Doe Living Trust. A day later, John dies.

If the deed to John’s house does not show “The John Doe Living Trust” as the owner, the terms of the trust will not control what happens to the house.

John’s house will have to be probated.

What John should have done is sign a new deed transferring the house from his individual name, John Doe, to the name of his trust (or to him as the trustee of his trust).

This holds true for any other titled assets.

Bank accounts, vehicles, stocks, LLC interests, mortgages—if the asset is not transferred to your trust by the proper legal means, it may still be subject to probate.

7. Do I have an estate planning letter of instruction?

If you died today, would your representative know how to manage your affairs?

Settling an estate can be very difficult, even for “simple” estates.

Your representative will have to inventory assets, contact your family and beneficiaries, organize and manage your finances, discover and address your debts, locate personal information, and do a hundred other things just to get started.

You can make the job a lot easier by compiling all that information now.

That is the purpose of an estate planning letter of instruction.

Related post: 3 Magic Ingredients in a Greater Letter of Instruction

A letter of instruction should offer practical information necessary to administer your estate, answering questions such as:

• Who should be notified of your death?

• What assets do you have and where are they located?

• How can your family claim benefits under a life insurance policy?

• What information is needed to obtain retirement benefits?

• Who is your lawyer? financial advisor? CPA? insurance agent?

• What subscriptions should be canceled after your death?

• Where is the key to your safe deposit box?

• How should your representative dispose of your personal effects and belongings?

• Etc., etc., etc.

Imagine that you could stand over the shoulder of your representative and tell them exactly what needs to be done to settle your affairs.

That’s how you should approach your letter of instruction.

If you want to make things as easy as possible on the people you leave behind, keeping a detailed letter of instruction is the best way to achieve it.

8. Do I have a digital estate plan?

Most people do not have anything in their estate plan about digital assets.

A “digital asset” is essentially anything you own that exists in digital or electronic form, either online or on an electronic storage device.

Related post: Estate Planning in the Digital Age

Some are obvious, such as online brokerage accounts, cryptocurrency, and digital wallets.

However, digital assets also include social media profiles, digital photos, music and movie files, redeemed gift card credits, domain names, ebooks, apps, and computer documents.

People often have digital assets with substantial value—either monetary or sentimental.

What happens to those assets when you die?

It can be incredibly difficult for your representative to access your online accounts after you die. So unless you leave instructions, your digital assets might be lost forever.

To avoid that result, you should create a digital estate plan.

A digital estate plan contains the information your representative will need to (1) access your digital assets and (2) dispose of those accounts however you want.

These directions can be included in your letter of instruction or in a separate document.

You can read my guide to create your own digital estate plan for more details.

Even if you don’t have digital assets you want to preserve, being able to access your online accounts can be a huge help to your representative in managing your estate.

Is your estate plan ready for 2024?

Change is one of life’s constants. It is therefore important to regularly review your estate plan. And while this checklist is a great place to start, it is no substitute for the advice of a qualified attorney.

To talk with an attorney about reviewing your estate plan, or to discuss creating an estate plan, contact the experienced Oklahoma City estate planning attorneys at Postic & Bates for a free, no-obligation consultation appointment.

David M. Postic is an attorney at Postic & Bates, P.C. His practice focuses on estate planning, probate, real estate, trust administration, business planning, and adoption.

You can email David through our Contact Us page or by calling our office at (405) 691-5080.

[As with all our blog posts and other publications and resources, the contents of this article do not constitute legal advice and are subject to our site-wide disclaimer.]