I can’t let January go by without a reminder that along with resolutions to eat healthy and go to the gym more often, resolving to make sure your estate plan is up to date is an important 2014 goal.   Here are some worthy resolutions for 2014:

• Resolve to make a Will (or update your old Will).  A 2012 study found that more half of all Americans with minor children do not have a Will in place (Yahoo).  Further, 41% of adults without minor children do not have a Will in place. If you don’t currently have a Will, resolve to make a Will in 2014.  If you have a Will, but have not reviewed it with your lawyer in more than 5 or 6 years, plan to do so in 2014.
• Resolve to learn about long-term care planning options.  Long-term care, whether it is provided in the home, in an assisted living facility or in a nursing home, is expensive.  A Genworth study of long-term care costs in Massachusetts found the annual cost of such care to be between $55,000 and $133,000.  If you are 60 years of age or older, resolve to educate yourself about long-term care issues and learn about the options that are available.  Waiting too long can mean that some of those options could be lost to you.
• Resolve to check your beneficiary designations.  Many people are under the mistaken belief that the distribution provisions of their Will or Trust will also control the distribution of their IRAs, 401ks, life insurance, and annuities.  This is generally not the case.  The beneficiary designation form that it is on file with the financial company, insurance company, or your HR department will determine who receives these benefits at your death.*  Many a court battle has been waged by a former or current spouse, or children from a first or second marriage, about outdated beneficiary designations.  Even if your situation is not likely to result in litigation, outdated beneficiary designations can mean the need to probate assets which would otherwise avoid probate or adverse income tax consequences for your beneficiaries. For more information on when to update your beneficiary designations, check out Attorney Baler’s article here.While Samuel, Sayward & Baler LLC can’t help you with your healthy eating and gym-going resolutions, we can help with your estate plan.  Give us a call and best wishes to all for 2014!

* Note that federal pension laws could supersede a beneficiary designation for a married employee as to his or her employer retirement plan.

Published January, 2014