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As the year comes to a close, it’s the perfect time to reflect on the changes in your life and how they may impact your estate planning documents. A key part of responsible estate management is ensuring that your will and power of attorney (POA) are up-to-date and accurately reflect your current wishes and circumstances. These documents are essential for protecting your legacy, making your healthcare and financial wishes known, and ensuring your loved ones are taken care of.

A year-end review of these documents offers an opportunity to address any changes in your life and re-evaluate your goals for the future. Whether you’ve experienced a significant life change or simply want to ensure your wishes are clear, reviewing your estate planning documents regularly is an essential part of responsible estate management.

Reasons to Update Your Will

Major Life Changes

Life is full of significant events that can directly impact the decisions made in your will:

• Marriage, Divorce, or Remarriage: A change in marital status is one of the most important triggers for revisiting your will. If you’ve recently married, divorced, or remarried, you’ll want to ensure that your spouse or ex-spouse is correctly reflected in your will. Marriage may introduce new beneficiaries, while divorce may require removing an ex-spouse or adjusting provisions for children from previous relationships.
• Birth or Adoption of Children or Grandchildren: New family members, whether biological or adopted, should be considered in your will. You’ll need to update your will to include guardianship provisions for minors, as well as ensure that children or grandchildren are included as beneficiaries.
• Death of a Beneficiary or Executor: If a beneficiary or executor named in your will has passed away, it’s essential to update the document to reflect this change. You may need to appoint a new executor or redistribute the assets among the remaining beneficiaries to align with your wishes.

Financial Changes

Changes in your financial landscape should always trigger a review of your will. Your assets and liabilities can evolve significantly over time, and it’s important that your will accurately reflects your current financial situation:

• Acquisition of Significant Assets: Over the years, you may acquire new property, investments, or even a business. These assets need to be clearly addressed in your will, as their value and complexity can impact the distribution of your estate. Be sure to specify how you want these assets handled to avoid confusion among heirs.
• Changes in Debts or Liabilities: As your debts evolve, so should your will. If you’ve taken on significant new liabilities, such as loans or mortgages, these changes may affect your estate’s value and the distribution of assets. A thorough update ensures that your debts are accounted for and will be settled according to your wishes.

Legal and Tax Updates

Estate laws and tax codes are frequently updated, and these changes may have a significant impact on your will. Here are some examples:

• Changes in Estate Laws: Estate planning laws are subject to change, especially with regard to inheritance and tax exemptions. For example, tax laws may alter the estate tax threshold or the rules for passing on assets to heirs. Keeping your will up-to-date ensures that your estate plan aligns with current legal requirements.
• Changes in Tax Codes: Tax laws are an important consideration when drafting or updating a will. Inheritance taxes, estate taxes, and other tax implications can change from year to year. It’s crucial to work with an estate planning attorney to assess how tax changes may affect your estate and how best to structure your will to minimize any tax burdens on your beneficiaries.

Charitable Goals

If charitable giving is part of your estate plan, your will should reflect any changes in your charitable goals. As your personal values and priorities evolve, so too should the provisions for charitable donations in your will. Here’s why you should review these provisions:

• Adding or Adjusting Charitable Contributions: You may want to include new organizations or causes that are important to you or adjust the size of your contributions to reflect your financial situation. If your estate is large enough, you may consider leaving a portion to charity, and updating these gifts ensures that your generosity is directed exactly where you intend.

Reviewing and Updating Your Power of Attorney

Health Care Power of Attorney

Your health care power of attorney designates a person (often referred to as a healthcare agent) to make medical decisions on your behalf if you become incapacitated and are unable to communicate your wishes.

• Ensure Your Designated Agent is Still Willing and Able: Life circumstances can change, and it’s important to confirm that the person you’ve designated as your healthcare agent is still willing and able to act on your behalf. This person should be someone you trust implicitly, who understands your medical preferences, and who is in a position to make timely decisions when necessary. If your designated agent has experienced health issues, moved far away, or is no longer available, it may be time to select a new agent.
• Verify Your Healthcare Wishes Are Accurately Reflected: As medical technologies and personal preferences evolve, so should your healthcare directives. It’s important to ensure that your healthcare power of attorney still accurately reflects your wishes regarding end-of-life care, organ donation, and other critical medical decisions. If you have updated preferences or new medical conditions that require specific instructions, make sure these are addressed in your documents.

Financial Power of Attorney

Your financial power of attorney grants an agent the authority to make financial decisions on your behalf, such as managing your accounts, paying bills, and overseeing investments. Like the healthcare POA, it’s crucial to ensure your financial agent is still capable of fulfilling these responsibilities.

• Confirm Your Chosen Agent is Trustworthy and Capable: A financial power of attorney grants a significant level of authority, so you need to ensure that your designated agent is both trustworthy and capable of handling financial matters. Life changes may impact someone’s ability to act in this role. If your agent has developed health issues, experienced financial problems, or is no longer available, consider appointing a new agent who is better suited to the role.
• Update the Document to Include or Exclude Specific Financial Responsibilities: Over time, your financial circumstances may change, and the scope of your financial power of attorney should reflect those changes. You may want to update the document to include additional financial responsibilities, such as managing business assets or handling retirement accounts. Conversely, if there are areas you no longer wish your agent to handle, such as real estate transactions or investments, you can specify these exclusions in the updated document.

State Law Changes

It’s also important to recognize that power of attorney laws vary by state and can change over time.

• State-Specific Updates to Power of Attorney Laws: Many states periodically update their laws concerning power of attorney documents, including rules about what is required for a POA to be valid, how to properly revoke or amend the document, and the powers that an agent can or cannot exercise. These changes can affect the functionality of your existing POA. For instance, a law may change the way healthcare agents can access your medical records or how they make decisions about life support. Similarly, a financial POA may have different legal requirements in terms of notarization or witnessing. It’s crucial to review your power of attorney in light of any changes to state laws to ensure that your document will still be legally valid and enforceable when you need it most.

Contact Keller, Barrett & Higgins

By taking the time now to review and update your estate planning documents, you are making a responsible choice that can prevent conflicts down the road and provide clarity and security for your loved ones. A well-structured estate plan helps ensure your assets are distributed according to your wishes and that the people you trust are in place to make decisions on your behalf when needed.

At Keller, Barrett & Higgins, we understand how important it is to have a comprehensive and up-to-date estate plan. Our experienced attorneys are here to help guide you through the process of reviewing and updating your will, power of attorney, and other essential documents. We can also offer insights into additional estate planning considerations like beneficiary designations, digital assets, and guardianship appointments to ensure that your legacy is fully protected.

Don’t wait until the last minute—take control of your legacy today. Schedule a consultation with Keller, Barrett & Higgins to review or update your estate plan and ensure peace of mind for the year ahead.

Contact Information:

• Phone: (513) 351-6058
• Email: info@kbhlawyers.com
• Website: www.kbhlawyers.com
• Address: 6900 Miami Avenue, Madeira, Ohio 45243