Most Overlooked Estate Planning Tasks To Complete This Year

Taking time to review estate tasks now helps ease the burden on loved ones in the future. When you regularly check your estate plans, you keep them up to date with major events such as marriage, the birth of a child, or acquiring new property. Careful attention to these details today helps prevent confusion or overlooked wishes later on. By addressing these frequently missed items, you make sure your preferences remain clear and legally sound. Completing these steps allows you to feel secure about your preparations and gives your family peace of mind should anything unexpected happen.

Update and Refresh Your Will

Making updates to your will often slips off the radar even though it sits at the heart of estate planning. A clear, current will directs how your assets move after you pass away. Living through major events—like buying a home, having a child, or starting a business—indicates it’s time to open your will document again.

Follow these steps to refresh your will efficiently:

1. Gather current documents including your existing will and any codicils.
2. Note significant life changes since the last update, such as a new marriage or a move to another state.
3. Meet with a licensed estate attorney or use a reputable online service like LegalZoom to adjust beneficiary designations or guardianship clauses.
4. Sign the updated document in front of the required number of witnesses to ensure its validity under local rules.
5. Store the new will in a secure spot and share its location with at least two trusted individuals.

Common triggers for reviewing your will include divorce proceedings, substantial changes in your net worth, and the introduction of new state inheritance laws. Clear triggers help you avoid missing the window when updates matter most.

Check and Update Beneficiary Designations

Accounts like retirement plans and life insurance policies depend on beneficiary forms rather than your will. Forgetting about beneficiary updates can lead to unintended heirs receiving funds. Regularly reviewing these designations ensures the right people inherit according to your wishes.

• retirement accounts (401(k), IRA) – verify primary and contingent beneficiaries
• life insurance – confirm payout percentages reflect current priorities
• bank accounts with transfer-on-death (TOD) or payable-on-death (POD) designations
• employer benefits – check if your company’s group life or disability plan needs updates
• stock plans – adjust inherited shares for equity compensation like stock options or RSUs

You might revisit these forms after a new marriage, divorce, or the birth of a child. Understanding the subtle differences between primary and contingent beneficiaries reduces confusion later.

Set Up or Renew Powers of Attorney

Power of attorney (POA) documents give someone you trust the authority to act for you if you cannot. Having both a financial POA and a health care POA in place allows quick decisions on bills, taxes, and medical care without court delays. If you set these up years ago, changes in state law or personal circumstances often require a fresh look.

Start by choosing two reliable agents who understand your values and know how you want finances or health decisions handled. Then meet with an attorney to draft clear language defining the powers you grant and any limitations. After signing and notarizing, share copies with your agent, family members, and your primary care physician if you use a medical POA.

Create or Review Trust Arrangements

Trusts can protect assets, reduce probate hassles, and keep your estate private. Many avoid this step because trusts seem complex, but even simple family trusts provide big benefits. If you already have a trust, ensure its assets still match your current holdings.

A straightforward living trust can cover your home and investment accounts to bypass probate. To update, list all accounts currently held in the trust and those left out. Then instruct your attorney to retitle any new assets—like rental property or brokerage accounts—into the trust’s name. If your children have reached adulthood or you welcome new grandchildren, adjust distribution terms so everyone receives their fair share.

Make an Inventory and Plan for Digital Assets

Passwords, photo libraries, social media profiles, and cryptocurrency often get left out of estate plans. Without clear instructions, loved ones may struggle to access or even know these assets exist. Creating a simple inventory with passwords stored securely in a password manager can prevent huge headaches.

• List each account name and login method (app, website, hardware wallet).
• Note where you keep access keys for digital currencies like Bitcoin or Ethereum.
• Include cloud storage, email, photo archives, and subscription services.
• Gather social media profiles and provide guidance on memorializing or deleting them.
• Keep this list updated inside a password vault secured by multifactor authentication.

Share limited access with your chosen executor or use a service like 1Password’s emergency access feature. This allows your selected person to step in smoothly when needed.

Examine Tax Planning Options

Start by checking the current gift tax exclusion amount and make annual gifts to family members or friends within that limit. Consider setting up a donor-advised fund if you plan to give to charity, since you receive an immediate deduction and decide on recipients later. Talk to a qualified tax advisor about moving appreciated assets out of your name to cut capital gains taxes. These simple actions contribute to more assets passing to your heirs.

Regularly reviewing estate planning tasks clarifies your intentions and offers peace of mind. Completing them ensures you and your family are prepared for the future.