The end of the year is a natural time to take stock, and your estate plan deserves a look too. Plans don't usually fail all at once. They drift out of date as accounts change, families grow, and life moves on. A short review now can catch small problems before they become big ones. Here's a checklist I recommend to families in Marin County and beyond.
1. Review your beneficiary designations
Life insurance, retirement accounts, and payable-on-death or transfer-on-death accounts pass to whoever is named on the form, regardless of what your will or trust says. Check that each designation still matches your plan, that no minor child is named directly, and that no one is listed whom you no longer want to benefit.
This is especially important after a divorce. California law revokes many gifts to a former spouse after a divorce, but it doesn't reach everything. Employer-sponsored retirement plans, for example, are generally governed by federal law. The safest approach is to update the forms directly.
2. Make sure your trust is funded
A trust only controls the assets that are titled in it. Did you open a new account, buy or refinance property, or receive an inheritance this year? New assets don't automatically go into your trust, and property is sometimes taken out of a trust during a refinance and never put back.
3. Confirm your key people are still the right choices
Look at who you've named as guardian for your children, successor trustee, executor, and agents under your power of attorney and health care directive. People move, relationships change, and circumstances shift. Make sure each person is still willing and able to serve.
4. Think about what changed this year
Some life events are a clear signal that your plan may need an update:
• Family changes, such as a marriage, divorce, birth, adoption, or death.
• A move, including buying a home or relocating to or from another state.
• Financial changes, such as starting or selling a business, or a significant change in your assets.
• Health changes for you or someone in your plan.
5. Check your incapacity documents
Confirm that you have a current durable power of attorney and advance health care directive, and that the people you named know where to find them. Institutions can be hesitant to accept very old documents.
6. Don't forget your digital life
Online accounts, photos, and passwords are part of your estate too. Make sure your documents address digital assets and that someone you trust will be able to access what matters.
7. Know where everything is
Your original documents, account information, and key contacts should be in a place your successor trustee or executor can find. A well-drafted plan doesn't help much if no one can locate it.
8. Coordinate year-end financial decisions
If you're considering gifts to family or charity, the annual gift tax exclusion applies per calendar year and resets on January 1. Your CPA or financial advisor can help you with any year-end deadlines that apply to you.
9. Use the holidays to have the conversation
When family gathers, it can be a good moment to share the basics: that you have a plan, who you've chosen for key roles, and where to find your documents. You don't need to share every detail. A little clarity now can spare your loved ones confusion later.
The bottom line
An estate plan works best when it reflects your life as it is today. A short review before the new year can give you, and the people you love, real peace of mind heading into 2027.
If your review turns up questions, or if you've been meaning to get a plan in place, I'd be glad to talk it through. You can schedule a Discovery Call here.