As the year draws to a close, many of us reflect on our accomplishments, challenges, and the plans we want to make for the future. It’s a natural time for setting goals and getting organized — particularly when it comes to important matters like estate planning and elder law as our Cranston, RI estate planning lawyer can attest who is a member of Elder Law Answers. Whether you’re starting from scratch or revisiting an existing plan, the new year is an excellent opportunity to review your affairs and ensure that your estate plan is aligned with your current goals and wishes.
Here’s a guide to help you prepare for the new year in the context of estate planning and elder law so you can face the future with confidence and peace of mind.
1. Review And Update Your Estate Plan
Reviewing your estate plan is one of the most important steps in preparing for the new year. If you already have one in place, it’s essential to periodically reassess it to ensure it still reflects your wishes and circumstances. Here are a few things to consider:
- Changes in Family Dynamics: Have there been any significant changes in your family? Births, marriages, divorces, or the passing of loved ones should all prompt a review of your Will, Trusts, and other estate planning documents.
- Changes in Assets: Have you acquired or disposed of assets over the past year? Major changes in property, investments, or business interests may require updates to ensure that your estate plan properly reflects your current wealth and goals.
- Health Care Directives: Your health care preferences may change over time. Consider reviewing or revising your healthcare power of attorney and living will to ensure they align with your current wishes, particularly if you’ve had any significant health changes.
- Tax Considerations: The new year might bring changes to tax laws that could affect your estate plan. For example, the federal estate tax exemption amount or state-level tax laws may change. A review with your estate planning attorney can help you stay on top of any tax implications and ensure your plan is as tax-efficient as possible.
2. Ensure Your Beneficiary Designations Are Up To Date
Beneficiary designations — on retirement accounts, life insurance policies, and other financial instruments — should be reviewed regularly. These designations may override instructions in a Will or Trust, so they must reflect your current intentions. For instance, you may need to update a beneficiary designation if there has been a life change, such as a marriage, divorce, or the death of a loved one.
Many people forget about their beneficiary designations, but these are key components of your overall estate plan. Ensure that they are up-to-date and in harmony with the rest of your planning documents.
3. Consider Long-Term Care And Elder Law Issues
As we age, it’s important to plan for potential long-term care needs. Planning can help you avoid difficult decisions down the road and give your family peace of mind. Consider the following aspects of elder law:
- Long-Term Care Insurance: If you don’t already have long-term care insurance, now might be a good time to explore this option. Long-term care can be expensive, and having coverage can protect your assets and provide for your care in the event of illness or incapacity.
- Medicaid Planning: If you’re concerned about the potential costs of long-term care, it’s important to understand how Medicaid works and how to qualify for benefits. Medicaid planning can involve structuring your assets in a way that meets eligibility requirements without sacrificing everything you’ve worked for. A consultation with an elder law attorney can help you navigate the rules and regulations surrounding Medicaid.
- Powers of Attorney: Designating a trusted person to manage your finances and healthcare decisions in the event that you are unable to do so is one of the most important aspects of elder law planning. Review or establish durable powers of attorney for both healthcare and financial matters to ensure that someone you trust is authorized to act on your behalf.
4. Make A Plan For Digital Assets
In our digital age, many people overlook the importance of planning for their digital assets — things like social media accounts, email, online banking, and digital files. When it comes to estate planning, digital assets can be just as important as physical ones.
Consider creating a list of your digital assets and passwords, and designate someone you trust to handle them in the event of your incapacity or death. This can include access to financial accounts, online business profiles, and even social media accounts, which might need to be closed or managed according to your wishes.
5. Work With Professionals
Estate planning and elder law can be complex, and the new year is an ideal time to consult with professionals who specialize in these areas. At McCarthy Law, our lawyers who are members of the National Academy of Elder Law Attorneys can help ensure your plan is comprehensive, up-to-date, and legally sound.
Our attorneys will also help you address specific concerns, such as minimizing estate taxes, providing for loved ones with special needs, or structuring your assets for long-term care planning. Having an experienced attorney on your side can ensure that you avoid costly mistakes and create a plan that truly reflects your wishes.
Start The Year With Peace Of Mind
The new year is a time for new beginnings — and it’s the perfect opportunity to take charge of your future by reviewing and updating your estate plan. By considering these key aspects of estate planning and elder law, you’ll be better prepared for whatever the future holds. With a well-structured plan in place, you can approach the new year with peace of mind, knowing that your legacy is protected, your loved ones are cared for, and your wishes will be honored.
Taking the time now to review and adjust your estate plan could save you and your family a great deal of stress and uncertainty in the years ahead.
At McCarthy Law, LLC we’re here to guide you through every step of your estate planning and elder law needs. Whether you’re looking to create a will, establish long-term care plans, or ensure your legacy is secure, our team is here to help. Contact us today to schedule a consultation and take the first step toward peace of mind.