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.
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.
