The first quarter of the year is a time to reflect and plan, as many review finances for tax season and plan vacations. However, one thing is often overlooked—the estate plan. A recent Kiplinger article, “Want to Avoid Leaving Chaos in Your Wake? Don’t Leave Behind an Outdated Estate Plan,” discusses what needs updating and why.
Everyone should have certain estate planning documents to be prepared for life’s unexpected events. This starts with a will, trusts (if appropriate), financial and health care powers of attorney and updated beneficiary designations on retirement accounts and life insurance policies.
An estate plan ensures that the people you love benefit from your wealth and receive assets according to your wishes. Yes, these documents can be challenged. However, without them or without updating them, important decisions will be made by state laws. The stress on loved ones during their grief can be avoided through estate planning.
It’s hard for most of us to consider our own death or incapacity. However, there are basic documents that everyone should put into place. The financial power of attorney is used to designate another person, often a spouse or an adult child, to act as an agent on your behalf. These are often described as “durable,” meaning the powers are granted upon the completion of the document. Your agent may conduct banking and investment transactions, sign legal documents, or even apply for benefits on your behalf.
Many people mistakenly assume their spouse can automatically represent them by virtue of marriage. However, this is not true. The same goes for health care. A health care power of attorney is needed to name an agent to make medical decisions when a person is incapacitated. With it, your representative can access information, talk to health care providers and authorize admission to a long-term care facility or hospital.
You’ll also want a living will, sometimes called an advance directive, to express your wishes for end-of-life care and life-sustaining treatment, including pain management, nutrition and hydration.
Planning for wealth transfer is another part of an estate plan. You’ll want a will to distribute assets and designate an executor to oversee the administration of the estate. If you have minor children, a will is used to name guardians, making it especially important for young families. The will is submitted to the court for probate after death, when it is validated, and the executor is approved.
Trusts are used by many people to remove assets from their probate estate and distribute them directly to heirs. They are used to facilitate the transfer of property in the event of incapacity. In a revocable trust, you maintain control of the asset, and a co-trustee or contingency trustee is named to oversee the trust in case of incapacity or death.
Beneficiary designations need to be updated as well. Retirement accounts and life insurance policies make up the largest part of most people’s assets. They are not controlled by the will or the revocable trust. Instead, each account or policy has a beneficiary designation, in which the owner names the people who are to receive the asset upon the owner’s death. If the wrong person is named as a beneficiary, they will inherit the asset. This is why it is so important to review beneficiary designations, especially if you have held life insurance policies or retirement accounts for many years.
Adding estate planning to the list of first-quarter tasks makes good sense. Chances are you’re already in the details as you prepare taxes and think about vacation plans for the coming year. Schedule a meeting with an estate planning attorney to ensure that you’re ready for the year ahead and beyond.
If you’re ready to start planning your family’s future, book a consultation with Hudson Legacy Law today.
Reference: Kiplinger (Feb. 4, 2026) “Want to Avoid Leaving Chaos in Your Wake? Don’t Leave Behind an Outdated Estate Plan”