Estate planning isn’t a one-time task — it’s an ongoing process that should reflect the changes in your life, family, and financial situation. As our lives evolve, so should the legal documents that protect our wishes and assets. Keeping your estate plan up to date is essential to ensure your plan functions as intended when it’s needed most. Whether you’ve just welcomed a new child, experienced a divorce, or purchased a second home, timely updates can help avoid costly mistakes, legal disputes, and unintended outcomes.

As attorneys experienced in estate planning, we’ve seen firsthand how small oversights in outdated documents can create big challenges for families. The good news is that knowing when to revisit your plan—and doing so proactively—can provide peace of mind and long-term protection for you and your loved ones.

Life Events That Should Trigger an Estate Plan Review

Certain personal milestones or changes in your family, finances, or health should automatically signal that it’s time to update your estate plan. These events often have legal and financial implications that can affect how your assets are distributed or how your wishes are carried out. Some of the most common life events that warrant an estate plan review include:

• Marriage, divorce, or remarriage
  
  
• Birth or adoption of a child or grandchild
  
  
• Death or incapacity of a spouse, beneficiary, executor, or trustee
  
  
• Significant changes in financial circumstances, such as buying or selling property, receiving an inheritance, or starting a business
  
  
• Relocation to a different state, especially if estate laws differ
  
  
• Diagnosis of a serious medical condition or long-term care need

Each of these events can impact how your will, trust, power of attorney, and other documents function. Updating your plan ensures that it remains aligned with your current intentions and needs.

Common Mistakes From Outdated Documents

Failing to update an estate plan can lead to unintended consequences—some of which may not be discovered until it’s too late. Outdated documents can leave loved ones unprotected, create confusion, or even result in your assets being distributed in a way you never intended.

Here are just a few examples of what can go wrong:

• Outdated beneficiaries: Naming a former spouse or someone who has passed away as a beneficiary can cause delays, disputes, or disqualification of benefits.
  
  
• Mismatched fiduciaries: Executors or trustees who are no longer available—or who are no longer the right fit—can complicate the administration of your estate.
  
  
• Gaps in guardianship designations: If your family has grown or changed, failing to update guardianship provisions for minor children could lead to court intervention.
  
  
• Incorrect property titling: Joint ownership, payable-on-death accounts, or real estate held in trust must reflect your latest wishes to ensure smooth transfers.

Keeping your documents current is one of the simplest ways to protect your legacy and spare your loved ones unnecessary legal and emotional stress.

How Frequently to Revisit Your Plan Even Without Big Changes

Even if no major life events have occurred, it’s wise to review your estate plan on a regular basis. We typically recommend revisiting your documents every three to five years, just to make sure they still reflect your current goals and legal landscape. Minor changes in your finances, relationships, or personal values may not seem significant at first — but over time, they can affect the effectiveness of your plan.

Regular reviews help you catch small issues before they become big ones. Maybe your named healthcare agent has moved out of state, or you’ve opened new accounts that aren’t yet titled in the name of your trust. A quick review can help ensure everything is still working in harmony and reduce the likelihood of surprises later on.

Coordinating Updates Across All Estate Planning Tools

When updating your estate plan, it’s important to think holistically. Your will, trusts, powers of attorney, and healthcare directives should all work together — and those documents should align with your financial accounts, property titles, and beneficiary designations.

A few important reminders:

• If you change your will but not your IRA beneficiary, the account may still go to an outdated recipient.
  
  
• If you revise your trust but forget to retitle new assets into it, those assets may still go through probate.
  
  
• If your financial power of attorney doesn’t reflect your current wishes, it may not provide the right authority in an emergency.

Coordinated planning ensures your intentions are carried out clearly and completely across all areas of your life.

Working With an Attorney to Ensure Alignment With Current Laws

Laws around estate planning, taxation, and healthcare decision-making can change — and sometimes, even subtle legal shifts can affect your documents. Working with an experienced estate planning attorney gives you confidence that your plan remains legally sound, up-to-date, and personalized to your situation.

Our role is to help you stay informed, make timely adjustments, and ensure your entire plan reflects current best practices and statutory requirements. Whether you need help identifying gaps or want to explore options for trusts, asset protection, or tax strategies, we’re here to guide you every step of the way.

Stay Prepared by Keeping Your Plan Current

Your estate plan should evolve along with your life. By reviewing and updating your documents regularly — and after significant life changes — you protect yourself and your loved ones from unnecessary stress and legal complications. Whether it’s a simple update or a full review, staying proactive ensures your wishes are clearly documented and legally enforceable.

If you’re unsure whether your plan still reflects your needs, we can help. Contact us to schedule a consultation and keep your estate plan working for you and your family.

As the year comes to a close, it’s an opportune time to review your estate plan to ensure that it aligns with your current wishes and circumstances. An annual review of your estate plan can help you make necessary updates and adjustments, maximizing the effectiveness of your planning and ensuring that your loved ones are protected. This year-end estate planning checklist covers essential tasks such as reviewing beneficiary designations, updating wills and trusts, assessing life changes, maximizing annual gifting, and preparing for the upcoming year.

Reviewing Beneficiary Designations

One of the most important aspects of your estate plan is ensuring that your beneficiary designations are up-to-date. Beneficiary designations on accounts such as life insurance policies, retirement accounts, and bank accounts take precedence over your will. This means that if your beneficiary designations are not current, your assets may not be distributed according to your wishes.

• Life Insurance Policies: Confirm that the beneficiaries listed on your life insurance policies are correct. If there have been changes in your family situation, such as marriage, divorce, or the birth of a child, you may need to update your designations.
• Retirement Accounts: Review the beneficiaries named on your retirement accounts, including IRAs and 401(k) plans. Ensure that they reflect your current intentions and make any necessary changes.
• Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts: Check the designations on your POD and TOD accounts, such as bank and brokerage accounts, to ensure they align with your estate planning goals.

 

Updating Wills and Trusts

Your will and any trusts you have established are foundational elements of your estate plan. Regularly reviewing and updating these documents ensures that they accurately reflect your current wishes and circumstances.

• Wills: Review your will to ensure that it accurately reflects your intentions regarding the distribution of your assets, guardianship of minor children, and the appointment of executors. Consider whether any changes in your family or financial situation require updates to your will.
• Trusts: If you have established one or more trusts, review the terms and provisions to ensure they still meet your needs. This includes checking the named trustees, beneficiaries, and the assets held in trust. If necessary, make amendments to address changes in your circumstances or objectives.

 

Assessing Life Changes

Life changes can significantly impact your estate planning needs. As part of your year-end review, assess any major life events that have occurred over the past year and consider how they may affect your estate plan.

• Marriage or Divorce: Changes in marital status can have a profound effect on your estate plan. If you have married or divorced, update your beneficiary designations, wills, and trusts to reflect these changes.
• Birth or Adoption of Children: The addition of a new child or grandchild to your family may require updates to your estate plan to include provisions for their care and inheritance.
• Death of a Beneficiary or Executor: If a named beneficiary, executor, or trustee has passed away, update your estate plan to designate new individuals to fulfill these roles.

 

Maximizing Annual Gifting

The end of the year is an excellent time to consider taking advantage of annual gifting opportunities. The federal government allows individuals to gift a certain amount of money each year to any number of recipients without incurring gift taxes. For 2023, the annual gift tax exclusion is $17,000 per recipient.

• Strategic Gifting: By making strategic gifts, you can reduce the size of your taxable estate while also providing financial support to your loved ones. Consider gifting to family members, friends, or even charitable organizations.
• Educational and Medical Expenses: You can also pay for someone’s tuition or medical expenses without these payments counting against the annual gift tax exclusion, provided the payments are made directly to the educational or medical institution.

 

Preparing for the Upcoming Year

As you review your estate plan, it’s essential to prepare for any anticipated changes or needs in the upcoming year. Proactive planning can help ensure that your estate plan remains aligned with your goals and provides peace of mind for you and your family.

• Review Financial Accounts: Check your financial accounts to ensure they are appropriately titled and that the beneficiary designations are current. This includes checking joint accounts, retirement accounts, and any accounts held in trust.
• Insurance Policies: Evaluate your insurance coverage, including life insurance, long-term care insurance, and disability insurance, to ensure they meet your current needs. Update beneficiaries and coverage amounts as necessary.
• Estate Tax Planning: If your estate is subject to federal or state estate taxes, consider strategies to minimize your tax liabilities. This may include lifetime gifting, charitable donations, or setting up trusts to protect your assets.

 

Ensuring a Comprehensive Estate Plan

Taking the time to review and update your estate plan at the end of the year can help ensure that your wishes are accurately reflected and that your loved ones are protected. By addressing beneficiary designations, updating wills and trusts, assessing life changes, maximizing annual gifting, and preparing for the upcoming year, you can create a comprehensive estate plan that meets your needs.

At Donohue, O'Connell & Riley, we specialize in helping individuals and families navigate the complexities of estate planning. Our experienced attorneys can provide personalized guidance and support to ensure that your estate plan is up-to-date and aligned with your goals. Contact us today to schedule a consultation and take the first step towards securing your future and protecting your loved ones.

For many people, the thought of creating a will can be daunting and easily postponed. It's often associated with old age or vast wealth, leading individuals to believe it's unnecessary until later in life. However, the reality is quite different. A will is a fundamental legal document that everyone should consider, regardless of age or financial status. In this article, we'll explore why having a will is crucial, what happens if you pass away without one, the benefits of creating a will, and what essential elements should be included.

Understanding the Consequences of Intestacy

When someone dies without a will, they are said to have died "intestate." In such cases, the distribution of their assets is determined by state intestacy laws rather than their own wishes. This can lead to unintended outcomes where assets are distributed in ways that may not align with what the deceased would have wanted. In addition to potential disputes among family members, the intestacy process can be time-consuming and costly, eating away at the estate's value in legal fees and administrative expenses.

The Benefits of Creating a Will

Creating a will allows you to take control of your estate and ensure your wishes are carried out after your death. Here are some key benefits:

1. Control Over Asset Distribution: A will allows you to specify who will inherit your assets, whether it's family members, friends, or charitable organizations. This ensures that your estate is distributed according to your preferences.
2. Appointing Guardianship: For parents with minor children, a will is crucial for appointing guardians who will care for the children in the event of both parents' death. Without a will, the court will decide who takes care of your children, which may not align with your wishes.
3. Minimizing Family Disputes: Clear instructions in your will can help minimize potential disputes among family members regarding asset distribution. This can provide peace of mind knowing that your loved ones will be taken care of without conflict.

Essential Elements of a Basic Will

While wills can vary in complexity based on individual circumstances, a basic will should include the following elements:

1. Executor: Designate an executor, also known as a personal representative, who will be responsible for carrying out your wishes as outlined in the will.
2. Beneficiaries: Clearly identify who will inherit your assets and specify the portions or specific items each beneficiary will receive.
3. Guardianship: If you have minor children, appoint a guardian who will be responsible for their care and upbringing.
4. Assets: List all your assets, including bank accounts, real estate, investments, vehicles, and personal belongings, and specify how you want them distributed.
5. Special Requests: Include any specific instructions or wishes you have, such as funeral arrangements or charitable donations.

Secure Your Legacy Today with Expert Estate Planning Guidance

Whether you're just starting your career or enjoying retirement, having a will is essential for protecting your assets and providing clarity for your loved ones during a difficult time. It's a proactive measure that ensures your wishes are legally recognized and followed, offering peace of mind knowing that your legacy will be preserved according to your intentions.

At Donohue, O’Connell & Riley, we understand the importance of estate planning and the impact it can have on your family's future. Our experienced attorneys are here to guide you through the process, offering personalized advice and crafting a will that meets your specific needs and goals. We are committed to providing you with the knowledge and support necessary to make informed decisions about your estate.

If you have questions about creating a will or would like to discuss your estate planning needs, we invite you to contact us today. Let us help you take the necessary steps to protect your assets and ensure your loved ones are cared for. Planning ahead is not just about preparing for the inevitable—it's about securing peace of mind for yourself and your family.

Take control of your future today by reaching out to Donohue, O’Connell & Riley. Together, we can create a comprehensive estate plan that reflects your values and safeguards your legacy for generations to come.

Losing a spouse is devastating. To help reduce stress on the legal and financial front, we are sharing practical tips to consider for a surviving spouse. You can start by gathering important documents including your spouse’s death certificate, will, marriage certificate, property deeds, vehicle titles, tax returns, bank account and credit card statements and insurance policies. Having these documents ready will help make the most of your time with our attorneys.

1. File the Will

It’s always a good idea, and in some states a legal requirement, to file the will of the first spouse to pass away with the the local court. Even though the will might not be probated, having it on file with local court ensures its safe-keeping if assets are later discovered which require probate. Some examples might be an unanticipated income tax refund, an inheritance, or a life insurance policy or retirement account without a beneficiary designation.

2. Who’s in First?

It’s a good idea to update existing planning documents and remove a deceased spouse from first position on such documents as a will, healthcare proxy, and power of attorney. This can avoid the need to present a death certificate of the deceased spouse when these documents are used; and save time, hassle, and money. A fresh set of documents can also provide for a backup to the person who is now named first.

3. What is the Basis?

Adjustments to cost basis may be available for investment accounts, real estate, and business holdings owned by the decedent. It’s always good practice to obtain appraisals for any businesses or real estate assets, even if jointly owned, as this will provide clear documentation of cost basis adjustments due to the death of a spouse that may end up saving substantial amounts in capital gains taxes, whether that be from repositioning securities in a portfolio, or from the sale of a closely held business interest or real estate. IRS regulations require an appraisal of business or real estate interest to be done by a qualified appraiser; a broker valuation or property tax assessment are not sufficient.

Particular attention should be paid to LLCs and partnerships as a timely, section 754 election may need to be made to allow assets owned by the company to benefit from a step up in tax basis.

4. Change in Tax Status 

Surviving spouses should be able to file as a qualifying widow or widower in the year of their spouse’s death, but thereafter, may be looking at a very different set of tax brackets. Thought should be given as to whether or not assets can be sold, or retirement accounts converted to Roth IRAs in the year of the first spouse’s passing so as to avoid bracket creep when the surviving spouse files as a single taxpayer.

5. Spousal IRA

Spouses often name each other as beneficiaries on their retirement accounts, so the surviving spouse will need to roll over any such retirement accounts and designate new beneficiaries. The rules that govern required minimum distributions for surviving spouses can be complex. Your attorney, accountant, or financial advisor should be consulted to make sure that that minimum withdrawals are taken annually in a timely fashion.

Also, spouses often name each other as beneficiaries on their life insurance, annuities, and other accounts that may flow via beneficiary designation. These beneficiary designations should be updated to reflect the death of the first spouse, and consideration may be given to cashing in accounts and closing or consolidating them if the account is of relatively small value, for example, $10,000 or less.

6. Social Security Benefits 

Surviving spouses who receive a lower Social Security payment than their deceased spouse may be eligible to take the greater of the two benefits. Adjustments may be made, however, if the surviving spouse took his or her benefit prior to reaching full retirement age. You should consult with your regional Social Security representative to determine the substantial benefits to which you may be entitled.

7. Time to Simplify  

As attorneys, we often tell clients that whether an account has $5,000, $50,000, $500,000 or $5 million in it, the work needed to be done to close out the account is about the same. The reality is that each account requires interfacing with financial institutions, each of which have their own rules and forms, and then subsequently accounting for the funds in that account to beneficiaries and the tax authorities. 

We estimate that each account incurs somewhere between $1,000 and $2,000 in legal and accounting fees to close and report the account. Thus, if you have a number of accounts at different institutions, consider consolidating them to the greatest extent possible. 

Ideally, we like to see clients having one retirement account, one after -tax investment account, and a checking account. Other than insurance products, such as life insurance and annuities, this is all that is necessary for 99% of our clients. Having multiple accounts at multiple institutions only makes executor’s task more complex, and often unnecessarily so.

them. 8. Involve the Next Generation  

When your spouse dies, recruit help from the next generation to assist you with day-to-day tasks. Having a second set of eyes to help avoid senior scammers, keep tax records straight, and assist with paying bills can be a godsend in your golden years. It’s also a good idea to have paper statements mailed, even if there is a small fee, as this will help assist your family members if they need to step in on an emergency basis.

9. Avoid Risks and Potential Scams

Family members need to pay particular care when a senior remarries later in life, or brings in a live-in romantic partner, or hires more help around the house. Unfortunately, in our experience, seniors often fall prey to those who aim to exploit the elderly. It’s always a good idea to make sure that personal financial and electronic records are secured in a locked room; that finances are not discussed with people who are new in the senior’s life, and that easily movable valuables, such as the family silver or valuable jewelry, are placed under lock and key.

Similarly, if major work or renovations are to be undertaken, contractors should be carefully vetted, and insurance certificates obtained prior to any major work being commenced. Having a child nearby to check in on the senior, or having a trusted friend or neighbor stop by on a regular basis can be a great way to make sure that your newly single family member is not being victimized.

 

 

 

 

 

 

Life is a journey marked by significant milestones: marriage, the birth of children, career advancement, and retirement, among others. Each of these milestones not only represents a personal achievement but also prompts a need for financial reassessment and planning. One critical aspect that often goes overlooked in this process is the regular review of beneficiary designations. At Donohue, O’Connell & Riley, we emphasize the importance of keeping these designations up to date to ensure that your estate planning aligns with your current wishes and life circumstances.

Why Beneficiary Designations Matter

Beneficiary designations are a crucial component of financial and estate planning. They dictate who will receive the assets of accounts such as life insurance policies, retirement funds, and brokerage accounts upon your death. What makes beneficiary designations unique is their ability to bypass the probate process, allowing for direct transfer to the named beneficiaries. This immediacy and simplicity underscore the importance of ensuring that your designations are always current.

Life Changes and Their Impact

Changes in your life can significantly affect your financial planning. A marriage or divorce, the birth of a child or grandchild, the death of a previous beneficiary, or changes in your relationships can all prompt a need to update your beneficiary designations. Failing to do so can result in assets being distributed to someone other than your intended recipient, potentially leading to family disputes and legal complications.

For example, in many jurisdictions, a divorce may not automatically revoke the designation of a spouse as a beneficiary on a life insurance policy or retirement account. Imagine the potential conflict and distress this could cause if the assets were inadvertently passed to an ex-spouse instead of the intended heirs or current spouse.

Reviewing and Updating Designations

Given the potential consequences of outdated beneficiary designations, it's advisable to review them regularly—at least every few years or following any significant life event. This review should encompass all accounts with beneficiary designations, including:

• Employer-sponsored retirement plans like 401(k)s
• Individual Retirement Accounts (IRAs)
• Life insurance policies
• Annuities
• Payable-on-death (POD) and transfer-on-death (TOD) accounts

When reviewing your designations, ensure that each reflects your current wishes. If updates are necessary, contact the account custodian or insurance company to request the appropriate change forms. Additionally, consider the benefits of naming contingent beneficiaries, who will inherit the assets if the primary beneficiaries are unable to do so.

Coordination with Your Estate Plan

It's also vital to ensure that your beneficiary designations align with the broader goals of your estate plan. Discrepancies between your will or trust and your beneficiary designations can create confusion and potentially undermine your estate planning objectives. Working with an experienced estate planning attorney can help you navigate these complexities, ensuring a cohesive and comprehensive estate plan.

Professional Guidance

The process of reviewing and updating beneficiary designations, while seemingly straightforward, involves careful consideration and planning. At Donohue, O’Connell & Riley, we are committed to providing our clients with the expert guidance needed to navigate these decisions. Our team can help you understand the implications of your choices, ensuring that your estate planning reflects your current life situation and future goals.

In Conclusion

Regularly reviewing your beneficiary designations is more than just a best practice; it's a crucial step in safeguarding your legacy and ensuring that your assets are distributed according to your wishes. Life’s changes are inevitable, and your estate plan, including beneficiary designations, should evolve to reflect these changes.

If you have questions about your beneficiary designations or any aspect of estate planning, Donohue, O’Connell & Riley is here to assist you. Contact us today to ensure that your estate planning needs are met with professionalism, compassion, and expertise. Together, we can ensure that your financial legacy is protected and passed on according to your wishes.