Did you know that the New Year is the perfect time to reflect on your life and make plans for the future? Starting your Alabama estate planning may not be the first thing you think about, but it is certainly critical for making sure that your wishes are honored and your loved ones are taken care of. We would like to review nine proactive strategies for effective Alabama estate planning in the New Year with you.
1. Find your Alabama last will and testament or trust agreement where you stored it and go over it. As we all know, life changes. There are marriages, divorces, births, and deaths all which can impact your Alabama estate plan. So as you go over these documents, be sure they reflect your current wishes and family situation.
2. Be sure to review and update, if necessary, your beneficiary designations. Review your retirement accounts, life insurance policies, and other financial products which have beneficiary designations. With any life changes you may need to update these designations to make sure they align with your current intentions.
3. Look at your life insurance policies in order to review and update them. Keep in mind that you need to review your life insurance policies regularly to be sure they are in line with your current Alabama estate planning goals. Whenever your life circumstances and financial situation change, so should your life insurance coverage.
4. If you own your own business, be sure to have a plan for business succession. Did you know that if you own your own business, you should include succession planning in your Alabama estate plan? Make your decision as soon as possible in regard to who will take over the management of your business should something happen to you. In addition, be sure to work with your experienced Alabama estate planning attorney to outline the process in your Alabama estate plan to ensure a smooth transition should something happen.
5. Have a plan in place for all your digital assets. We are in the digital age and it is important to include digital assets like social media accounts, online banking, and digital files in your Alabama estate plan. Start by making a list of these assets and work with your Alabama estate planning attorney to include instructions on how they should be handled.
6. Annually review estate tax laws. Be mindful that estate tax laws can change, and it is vital that you stay informed. So review your Alabama estate plan in light of current tax laws and be sure to consult with your experienced Alabama estate planning attorney to understand how these laws could affect your Alabama estate plan.
7. Always keep your important documents secured. Be sure all your Alabama estate planning documents are securely stored. That being said, they also need to be accessible to the right people when needed. Let your decision makers or the family members of your choosing know where these documents are kept.
8. Be sure to have a power of attorney and healthcare directives and keep them updated. You should have a durable power of attorney and a healthcare directive in place. You need these important documents in case you become incapacitated and unable to make decisions for yourself. Again, these documents should be reviewed annually to make sure they always represent your wishes.
9. Think about adding charitable giving to your estate. Is philanthropy important to you? Then you should consider incorporating charitable giving into your Alabama estate plan. With the assistance of your Alabama estate planning attorney you could add specific bequests in your will, set up a charitable trust, or designate a charity as a beneficiary of a retirement account.
Remember, Alabama estate planning is a continuous process that requires regular updates and reviews. By following these nine proactive strategies for effective Alabama estate planning you can be sure that your estate plan is up-to-date and in line with your current wishes. We really want you to start your New Year with the peace of mind that comes from having a comprehensive and up-to-date Alabama estate plan.
We know this article raises more questions than it answers. At the end of the day, legal planning is not just for you. Instead, it is for the ones you love most. If we can answer any questions for you on putting this estate planning in place, please do not hesitate to let us know. For more information, please reach out to our office and schedule a time to meet.