Estate Planning Tips for the New Year

The Elder Advisors Law team knows that predicting what the new year holds for you and your loved ones can be challenging. However, our self-help estate planning tips can help you begin the year with a clear and organized plan, bringing peace of mind to both you and your family.

Keeping your plan current

In sound estate planning, it is vital to have us review your plan whenever changes take place. Has your financial or medical situation changed since your plan was created? Have your children divorced and remarried, or started their own families? Do your beneficiary designations continue to reflect your wishes? Are all of your trusts properly funded? Your estate plan must consider all of these issues and more to accomplish your goals. An outdated or improperly designed estate planning is often worse than no plan. This is a great time of year to review your plan and make necessary changes.

Your estate planning should involve your loved ones

You can have the best estate plan in the world, but if nobody knows about it or can’t find it in an emergency, your plan isn’t worth the paper it’s printed on. We advise our clients to write a letter to loved ones informing them you have a plan and documenting important information such as:

• The names and contact information of attorneys, wealth managers, bankers, CPAs, insurance agents, and other key advisors
• The location of your planning documents, particularly your will, powers of attorney and advance directives
• The location of financial information like bank accounts, pensions, IRAs, and insurance policies
• Medical information, including the names of your physicians, your insurance company, the medications you take, and your pharmacy

Share your passwords.

Chances are you have so many passwords it’s almost impossible for you to keep track of them. Now’s the time to make that master list with all your user names, passwords and security questions in one document, and to let your loved ones know where to find it.

Next time, we’ll look at additional tips for the new year.

Review your asset allocation.

The start of the new year is an excellent time to reassess your investment portfolio to ensure your asset allocation is where it should be to accomplish your investment goals. Additionally, a stock, mutual fund, or other investment that out-performed the market two years ago may not have done as well in 2019. If so, take a long, hard look at it.

Make a detailed monthly and annual budget.

One of the greatest fears among retirees and seniors is outliving one’s life savings. Create a detailed monthly and annual budget if you haven’t done so already. If you already have a budget, be sure to update it to account for any changes in your income or unforeseen expenses.

Take a home inventory for insurance purposes.

What is the precise value of all the “stuff” you’ve accumulated over the years? If you’re not sure, it’s time to find out. Photograph your valuable belongings, organize and collect all the pertinent documentation about them, and have them professionally appraised. Then, be sure to update your property insurance.

Start a conversation.

Writing a letter to your loved ones informing them you have a plan is one thing. Talking to them about the details of your plan is another beast entirely. While such a conversation is infinitely more difficult than writing a letter, the rewards of doing so can be substantial. It is entirely possible that your children would like to know, for example, how you wish to be cared for in the event of incapacity. Similarly, your children may wonder about your financial situation. Is your house paid for, or are you carrying a mortgage that must be covered if you pass away suddenly? Have you created a will or trust, and if so, do your children stand to inherit any assets? Your children may hesitate to ask questions like these for fear of appearing greedy or insensitive. Yet, they may also need this information to plan their estate properly.

How We Can Help

Our Elder Advisors Law team in Janesville or Wales, Wisconsin, would welcome the opportunity to discuss estate planning for the New Year with you and provide invaluable assistance.

Here are some ways we can help: