Is Your Estate Plan Still the Plan You Think You Have?
Most people who have an estate plan signed it, filed it, and moved on. That makes sense. The documents were done, and life kept going.
But an estate plan is a snapshot. It reflects your family, your property, and your wishes on the day you signed it. Every year that passes, the distance between that snapshot and your real life can grow. October is Estate Planning Awareness Month, which makes it a good time to pull your documents out and ask a simple question: if something happened tomorrow, would this plan do what I want it to do?
Life changes that call for a review
A review makes sense any time one of these has happened since you last signed:
- A marriage, divorce, or remarriage
- A birth, adoption, or a new grandchild
- The death of a spouse, a named beneficiary, an executor, or a trustee
- A child reaching adulthood, or a child who now needs extra support
- A move to or from Illinois
- Buying or selling a home, farmland, rental property, or a business interest
- A significant change in what you own, up or down
If none of these apply, a quick review every three to five years is still a reasonable habit. Laws change, assets change, and so do the people you trust to carry out your wishes.
Your will may not control as much as you think
Many assets pass outside of a will. Life insurance, retirement accounts, and annuities go to whoever is named on the beneficiary designation. Bank and brokerage accounts may carry payable-on-death or transfer-on-death designations. Property held in joint tenancy passes to the surviving owner. In Illinois, a home can also pass through a recorded transfer on death instrument.
Beneficiary designations can control who receives an asset regardless of what your will says, although divorce and other circumstances may affect whether a designation remains valid. If a form still names a former spouse, or someone who has since passed away, don't assume the will will sort it out. This is a common gap, and often one of the easiest to address. Review your beneficiary designations alongside your will and trust, not separately.
Check who you have named to act for you
An estate plan is only as good as the people named to carry it out. Look at each role in your documents:
- Executor or trustee. Is this person still willing and able to serve? Do they live nearby, or would the job be a hardship?
- Agent under your power of attorney for property. This person can handle your finances if you cannot. Is that still the right choice?
- Agent under your power of attorney for health care. This person speaks for you when you cannot speak for yourself. Do they know your wishes?
- Guardian for minor children. Circumstances for the people you named may have changed since you chose them.
It also helps to confirm that each person knows they have been named and knows where to find the documents.
Don't overlook the documents that work while you're living
Much of estate planning is about what happens after death. But powers of attorney for property and health care do their work during your lifetime, often at the hardest moments. Without them, your family may need to go to court to get the authority to pay your bills or make medical decisions for you. If your powers of attorney are old, or you never signed them, they deserve attention first.
A simple way to start
You don't need to redo everything. Set aside an hour and gather:
- Your will and any trust documents
- Your powers of attorney for property and health care
- Current beneficiary designations for life insurance and retirement accounts
- A list of accounts and real estate, and how each is titled
Read through them with the list of life changes above in mind. Note anything that no longer fits. That list is the starting point for a productive conversation with your attorney.
An estate plan isn't meant to sit in a drawer. It's meant to work when your family needs it. A little attention now helps make sure it will.
If it has been several years since you reviewed your estate plan, or if life has changed since you signed it, McGrath Law Office, P.C. can help you determine whether your documents still reflect your wishes. Contact our office to schedule an estate planning review—Mackinaw: 309-359-3461or
Morton: 309-266-6211.
This article is for general information only and is not legal advice. Every situation is different; talk with an attorney about your specific circumstances.
