The Covid-19 pandemic has offered a great reminder to review the elements of your estate plan. Below are some key items to consider.
Health care proxy and power of attorney: Review each of these to be sure you are comfortable with the agents you have chosen to make both medical and financial decisions on your behalf if you are unable to make them for yourself. You should also have alternate agents in place in case the first agent is unavailable. If your documents are older, now may be a good time to update them.
Last will: Review to be sure you are still comfortable with the person you nominated to be your personal representative, and be sure that you have named an alternate. This should be a responsible adult who lives relatively close to you. Be sure you have nominated a guardian and alternate guardian for any minor children you may now be responsible for.
Trust: Review your trust(s) to be sure the person you named to be trustee after you have passed away is still available and willing to act in that capacity. Review the beneficiaries of your trust and the way in which you have divided assets among them. It is important to include special provisions for any minors or others who may be unable to manage their own finances.
Beneficiaries: Review the named beneficiaries on all your other accounts, such as IRA’s, life insurance policies, investment accounts, etc. Remember that these accounts only pass outside of probate if you have named beneficiaries on file at the administrating company. Failure to do this can result in the person(s) administering your estate having to go through a probate for a single asset.