Estate planning attorneys strive to educate their clients that estate planning is not an event, it’s a process.  Your estate plan is a project that requires review on an ongoing basis, and may require changes periodically to make sure it continues to meet your planning goals.  The new year is a good time to review the various aspects of your estate plan with an eye toward making things easier for you and your family in the future.

Here are five steps you should take now and every year to make sure your plan is up-to-date:

1.      Maintain a current asset list.  The starting point for a good estate plan is a list of assets, and it’s one of the first things your family will need after your death.  If such a list is not maintained, it can be difficult for families to identify assets in a timely way, especially if the deceased was not organized and/or maintained multiple accounts at different financial institutions.  Make things easier for your family by creating  a list that contains the description of each of your assets or accounts, where it is located, the account number (if any), how the asset is owned (individually, jointly, in trust, etc.), and its approximate value.  Then, keep this list updated by reviewing and revising it every six months or so.  Finally, keep the list in a place where it can be easily found by someone after your death – for example, in a file in your filing cabinet marked “Asset List.”  I can already hear your heirs thanking you.

2.      Check your Beneficiary Designations.  Life insurance policies and retirement accounts are often my clients’ largest assets after their home.  These assets (and others) allow you to name a beneficiary who will receive the asset at your death.  Beneficiary designations are a very efficient way to distribute assets after death.  However, in order to ensure that your wishes are carried out, you must review your beneficiary designations from time to time and update them as necessary. For group life insurance policies and employer retirement accounts, it may be as simple as logging in and reviewing your beneficiary designations online.  Otherwise, call the life insurance companies and financial institutions that maintain your retirement accounts and ask them to send you written confirmation of your beneficiaries.  If they are not correct, change them, and make sure you obtain written confirmation each time you change the beneficiary.  If circumstances change (for example, if you get divorced or if your spouse or child dies), make sure you review and change your beneficiary designations as appropriate.  Also make sure you have contingent beneficiaries designated in the event your primary beneficiary does not survive you.

3.      Keep a Password List.  Many sources advise that you should never write down your passwords to online accounts to protect the privacy of the information in those accounts.  However, estate planning attorneys will tell you that for estate planning purposes it is important to keep a written record of your passwords in order to allow your family to get access to your online accounts after death, or in the event of your incapacity.  This includes financial accounts as well as websites where you store photos, Facebook, or other online accounts.  This is not a list that should be published or even discussed.  But make a list, keep it current, and keep it in a safe place.  Your estate planning attorney may be willing to maintain this document with your estate plan documents.

4.      Consider the Disposition of Tangible Property.  Families fight about the strangest things.  A deceased person’s tangible property (jewelry, furniture, photographs, knick knacks) are often the source of the most passionate disputes among family members, even (or especially!) if those items have no value.  Consider how you want your tangible personal property to be distributed after your death, and take steps to express those wishes while you are alive.  One of the best ways to do this is to create a memorandum separate from your Will on which you list specific items and who you would like to receive them.  Your estate planning attorney can advise you how to make such a memorandum binding after your death if you wish.  If you have items you no longer wish to keep, give them to your loved ones now.

 5.      Review Your Plan and Update if Necessary.  Creating estate plan documents is an important step to take to protect yourself and your family.  Keeping your documents up-to-date is equally important to ensure the plan you created continues to carry out your goals as those goals and your family’s circumstances change.   When clients complete their estate plan documents, they often feel a sense of relief.  Estate planning can be complicated, and clients may forget the details after the plan is complete.  Make it a point to sit down and review your estate plan documents at least once a year, either alone or with your estate planning attorney.  If changes need to be made, don’t procrastinate!  An up-to-date plan is the best way to ensure that family harmony is maintained and the administration of your estate occurs in a timely and cost-efficient manner.

Attorney Maria Baler is an estate planning and elder law attorney and a partner with the Dedham law firm of Samuel, Sayward & Baler LLC. She is also a director of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA). For more information, visit www.ssbllc.com or call (781) 461-1020.  This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney.