Losing a loved one is never easy, and while the grieving process takes time, it’s essential to review your estate plan after such a significant event. The death of a loved one can impact your plan, and updating your documents ensures your wishes align with your current reality.
Here are the critical elements of your estate plan that should be reviewed:
Beneficiaries and Inheritance
Was your deceased loved one named as a beneficiary in your will or trust? If so, ensuring your documents outline what happens if your beneficiary predeceases you is crucial. Without a contingent (backup) beneficiary, the intended gift may be canceled and returned to your general estate, which could lead to unintended outcomes. To avoid complications, ensure alternate beneficiaries are clearly defined.
In some states, antilapse laws allow the deceased beneficiary’s heirs to inherit in their place, but these laws vary. Updating your estate plan ensures your wishes are followed regardless of state laws.
Review of Trusted Decision-Makers
Your estate plan likely names trusted individuals to act on your behalf, whether for financial or medical decisions or to manage your estate after death. If any of these individuals have passed away, you’ll need to review the following:
- Personal Representative/Executor: This person manages your estate, pays debts, and distributes assets. Without a backup named, the probate court will appoint someone who may not align with your preferences.
- Co-Trustee or Successor Trustee: If your deceased loved one was a trustee or successor trustee, review the trust to ensure a replacement is named. You may also want to update the document to remove their name.
- Agent under a Financial Power of Attorney: This agent manages your finances if you become incapacitated. Without a backup, your loved ones would need to go to court to appoint someone, which can be stressful and costly.
- Agent under a Medical Power of Attorney: If your chosen medical decision-maker has passed away, update your plan to appoint a new one. If no agent is available, your family may have to go to court for guardianship to manage your medical decisions.
- Guardian for Minor Children: If the guardian you named for your minor children has passed away, it’s vital to update this selection. Without an alternate, the court will decide who will raise your children.
Take the Next Step
It’s crucial to ensure your estate plan is up to date and reflects your current circumstances. Reviewing and updating your estate plan after a loved one’s death is an essential part of protecting your family and ensuring your wishes are followed.
We’re here to support you through this process. Contact us today to schedule an appointment.
