5 Tips to Review Your Estate Planning Documents

ELDER LAW

Start Off Your New Year Right

The beginning of the year is a great time to plan for your future.

by Bluegrass ElderLaw, PLLC

Welcome to 2021! The past year has been a rollercoaster. To prepare for 2021 and the unexpected future, we recommend taking a few minutes to make sure your estate plan is up to date.

The beginning of the year is a great time to plan for your future. If you have already done some estate planning, it is time to review your documents.

Here are some tips:

1. REVIEW ANY CHANGES IN THE PAST YEAR

Did you have any big changes last year? Did you get married or divorced? Did you have a kid? Did your assets or income change or was there a death in your family? Your documents need to reflect any of these changes.

2. REVIEW YOUR POWERSOF-ATTORNEY

Kentucky’s power-of-attorney (POA) law changed significantly in 2020. While you should have an attorney review your document, here are a couple of things to look for.

• HIPPA. Does your POA provide HIPAA releases? HIPAA is the Health Insurance Portability and Accountability Act. This law prevents doctors or other medical professionals from disclosing your health care information without your permission.

• Gifting. Does your legal/ financial POA provide for unrestricted gifting power? Many powers-of-attorney will only allow for limited gifting powers. This is an unfortunate restraint if asset preservation planning needs to be done in the future. If your document does not specifically mention gifting powers, your agent does not have authority to make gifts of any kind.

• Agents. Are the person(s) you named as your agent or agents still the appropriate people to make decisions for you if you cannot? Are the people you appointed mentally competent, responsible and reliable?

3. REVIEW YOUR WILL

Find your will and actually read it! Here are some things to review in your last will and testament:

• Executor. Is the person(s) who you named as your executor (also called personal representatives) still the appropriate people to serve? You should choose responsible individuals to be your executor. This person does not need to be one of your children or your heirs. If you do not trust the people receiving power under your will to distribute the assets fairly, pick someone else.

• Specific Gifts. Do you have any specific gifts that need to be added? If you have specific items that you want to go to certain persons, this should be memorialized in your document. Post-it notes attached to personal items are not binding on the executor and could be moved.

• Minor or Disabled Beneficiaries. If you have people in your life who are under the age of eighteen (18) or who are disabled (or receiving means-tested government benefits) there are specific ways they should receive assets.

4. REVIEW BENEFICIARY DESIGNATION FORMS

This is probably the No. 1 overlooked step. Your retirement accounts, life insurance and even some bank accounts may name a person to receive the assets upon your death. This person is your beneficiary. Ask your financial institution for the most current version of your beneficiary designation form. Make sure what they have on record is still what you want. You may want to consider adding a “per stirpes” designation, split the proceeds according to different percentage or designate a trust.

5. GATHER IMPORTANT DOCUMENTS

Place all your important documents in a folder together and put them in a safe place. In addition to your legal documents, place bank account information, life insurance policies, retirement account information and passwords in the folder for your loved ones to find easily if necessary. If you are putting your documents in a bank’s lock box, make sure your loved ones know that they are there. Make copies of all your documents or scan them into your computer for easy reference.

With those five simple steps, you are ready to start off in the New Year with a bang! Congratulations!

120 N. Mill Street, Suite 201, Lexington, KY 40507 | www.bgelderlaw.com | 859.281.0048