The beginning of a new year is the perfect time to reassess and review your will and estate plan. January brings a sense of renewal, making it an ideal time to ensure that your documents reflect your current life situation, wishes, and any changes in the law. Taking the time now can save you and your loved ones unnecessary confusion and delays in the future, ensuring your estate is distributed according to your preferences.
Robert Friedman
Michael Ranzenhofer
Justin Friedman
John Dracup
Why January Marks a New Beginning for Your Estate Plan 
The fresh start of a new year provides an excellent opportunity to make important decisions, set new goals, and reflect on life’s transitions. While many people focus on personal resolutions, such as improving their health or finances, an often overlooked resolution is to review and update one of the most important aspects of your future: your estate plan.
A will and estate plan are not static documents; they require regular updates to ensure they are aligned with your current life circumstances. Whether it’s a recent change in your family dynamics, a move to a new state, or a shift in your financial situation, reviewing these documents in January ensures that everything is properly adjusted to reflect your wishes.
The Life Changes That May Prompt Estate Plan Updates
Life is full of changes, and some of the most significant moments—such as getting married, having children, or even experiencing the death of a loved one—necessitate adjustments to your estate plan. January provides an opportunity to look back on any of these changes from the previous year and ensure that your documents reflect them.
For instance, if you’ve recently had a child or grandchild, it’s important to designate guardians and ensure that they are cared for in the event of your passing. Similarly, a divorce or remarriage may require you to update beneficiary designations, the executor of your will, and other critical details. By taking the time to review your estate plan at the start of the year, you’ll have peace of mind knowing that your loved ones are protected, and your wishes will be respected.
Aligning Your Estate Plan with Your Financial Goals
A comprehensive estate plan is about more than just distributing assets—it also aligns with your broader financial and personal goals. In January, you can reflect on your current financial situation, including any changes in income, investments, or business ownership. For example, if you’ve recently acquired significant assets such as a new home or investment portfolio, it may be time to update your will and trust to account for these.
Likewise, any changes to your retirement plans or insurance policies should be reflected in your estate plan. Ensuring your plan accurately represents your financial situation will prevent confusion and unnecessary probate complications. January allows you to realign your estate planning documents with your ongoing financial goals and aspirations.
How Tax Laws Can Affect Your Estate Plan
One of the reasons to review your estate plan in January is to stay on top of changes in tax laws that could affect how your assets are distributed. Every year, tax regulations change, and some of these changes could impact your estate plan. For instance, estate tax exemptions may shift, or new regulations may emerge regarding trusts or inheritance.
Tax laws often undergo adjustments in January as new tax codes are implemented, and this can have a significant effect on the strategy behind your estate planning. By reviewing your documents at the start of the year, you can be sure that your plan takes these updates into consideration, helping you minimize tax burdens for your heirs and ensuring that your estate plan remains effective and efficient.
Reviewing Healthcare Directives and Powers of Attorney
Your estate plan should not only cover the distribution of assets but also provide instructions for healthcare and financial decision-making should you become incapacitated. Healthcare directives and powers of attorney are essential components of a complete estate plan, and they must be regularly reviewed to ensure they reflect your current wishes and the legal framework in your state.
January is an excellent time to review your healthcare proxy, living will, and durable power of attorney. Perhaps you’ve had a change in your health, or your relationship with the designated healthcare proxy has shifted. It’s crucial to revisit these documents to confirm that your choices remain in line with your wishes. Updating these critical documents can provide peace of mind, knowing that someone you trust will be in charge of making decisions on your behalf if needed.
Avoiding Probate Complications and Streamlining Your Estate Plan
Many people create an estate plan to avoid the lengthy and costly probate process, which can delay the distribution of assets. Probate is the legal process in which a court oversees the distribution of assets according to your will. If your will is out of date or incomplete, your estate could face unnecessary delays, which can create additional stress for your family during an already difficult time.
One of the benefits of reviewing your estate plan in January is that it helps you identify any potential issues that could lead to probate complications. By ensuring that your documents are up to date, that your assets are properly titled, and that your beneficiaries are clearly defined, you can help streamline the distribution process. January is the perfect time to ensure everything is in order, reducing the chances of your estate being tied up in probate court.
Ensuring Your Estate Plan Is Easy to Access and Understand
A common mistake many people make with their estate plans is storing important documents in a difficult-to-access location or using overly complex language. It’s important to not only have a comprehensive estate plan but to ensure that your loved ones can easily access it when needed. January is the perfect time to review the storage and organization of your estate planning documents.
Ensure that your will, trust documents, healthcare directives, and powers of attorney are all stored in an easily accessible location. This could be a secure filing cabinet, a safety deposit box, or digital storage with the appropriate access. Make sure that your executor and trusted family members are aware of where to find these documents, so they don’t have to go on a search during an already stressful time.
Updating Your Estate Plan Regularly for Peace of Mind
Estate planning is not a one-time task but a process that requires regular updates. As you go through life, your assets, family dynamics, and even your goals may shift, making it essential to revisit your estate plan every few years—or sooner if significant changes occur. January offers a great opportunity to conduct this regular review.
By reviewing your estate plan at the start of each year, you ensure that your wishes are properly reflected and that any recent changes—whether personal or legal—are incorporated. This proactive approach to estate planning can save your loved ones from unnecessary stress and confusion in the future.
The Peace of Mind That Comes with a Well-Reviewed Estate Plan
Knowing that your estate plan is up to date and reflects your current wishes gives you peace of mind. By taking the time in January to review your documents, you can be confident that your loved ones will be taken care of and that your estate will be distributed as you desire. January is the perfect time to ensure that everything is in order, allowing you to face the year ahead without worry.
At Friedman & Ranzenhofer, we are committed to helping individuals and families navigate the complexities of estate planning. Our experienced attorneys can guide you through the process of reviewing and updating your will and estate plan. Contact us today to schedule a consultation and ensure that your estate plan is up to date for the year ahead.
To learn more about this subject click here: 5 Common Mistakes to Avoid in Estate Planning and How to Protect Your Family