If your 2022 didn’t go as fast as everyone else’s then congratulations! Either way, everyone’s calendar shows just a few weeks left in the year – meaning there’s still time to check some important items off the to-do list before we roll into 2023.
Estate planning is a topic every adult, young or old, should be aware of and consider. Protecting what you’ve grown over time through hard work and sometimes just plain dumb luck (let’s just be honest here) should be a priority. We want to explore some estate planning benchmarks you should get to so you can set yourself up for success in the new year.
Start or Update Your Estate Plan
Okay, first off: if you don’t have an estate plan as an adult then it’s not too late. The best time would’ve been yesterday, but today is a new day and yesterday is old news. You should have a plan for what will happen to your assets, your money, and your kids when you’re gone. Your estate plan should also cover important decision-making powers such as guardianship or a power of attorney to establish who can make decisions when you’re unable to do so yourself.
If you already have an estate plan, then now could be a good time to take a look and make sure it’s still accomplishing your goals. Plans change all the time. For instance, I planned to eat a salad for lunch but then accidentally put my keys in my car and drove to Drew’s Place for some fried chicken instead. (It’s just so good!!) Your final estate plan will likely look nothing like your first estate plan, so let’s take a look at it today and enter 2023 with peace of mind.
There are many situations where updating your will may be necessary. Consider making this a priority if in 2022 you:
- Bought a house
- Got married or divorced
- Lost a loved one (especially if you lost someone who is a beneficiary)
- Acquired significant assets
- Welcomed a new member to the family through marriage or birth
Review Your Plan Periodically
The biggest advantage of an estate plan in place is being in control and setting out what you want to happen upon your death or incapacity. Situations arise and life happens. Is what you wanted then what you want now? Wills and Power of Attorneys need to be evaluated to keep them current. First of all, you obviously don’t want anyone who is no longer with us to be designated to receive your assets. Second of all, newborns may be added to your estate plan as beneficiaries, but a testamentary trust is needed to effectuate the transfer of your estate to a minor. Texas law prohibits minors from owning real property or inheriting assets so if you have minor children, you will need to designate a trustee to manage the estate until the child is old enough. Afterall, you’d hate to have that narcissistic ex you spent thousands of dollars trying to be free from managing your estate.
Consider Roe v. Wade Impacts
Keeping your estate plan up to date is especially important for those in same-sex marriages with children. With laws changing and the Supreme Court raising questions about parentage, your estate plan should protect your child’s inheritance rights should something happen to you or your spouse.
There’s no more assuming you will have parental rights until you’ve legally established them. Your estate plan won’t establish parentage, but it can ensure there aren’t questions down the road about who will acquire your assets and can help establish who will care for your children when one or both of you are gone.
Update Your Beneficiaries
As noted above, if you welcomed new members to your family or lost members of your family in 2022 then you should consider how that impacts your estate plan. Because a will may not affect certain assets such as retirement plans, financial accounts, and life insurance, you should also review and update any previously designated beneficiaries as needed. Having the wrong beneficiaries in place is a surefire way to cause headaches for your loved ones when you’re gone.
Attorney Dawn King can help you fulfill all your estate planning needs. Whether you need to start an estate plan, update the one you have, or simply review your plan, then schedule a consultation today.