A New Year’s Resolution You Can Keep

A Proactive Resolution for Your Family’s Future

Each new year often begins with resolutions for self-improvement. While goals for health and fitness are important, one of the most impactful resolutions you can make is to take a proactive approach to your asset protection. Taking a few simple steps now can make things significantly easier for your spouse, your family, and yourself in the future. Here is a simple, three-step resolution you can keep.

Step 1: Get Organized

In a crisis, the last thing your family needs is to go on a scavenger hunt for your important papers. Take the time to gather all of your essential documents—including legal, insurance, retirement, and military papers—and place them in one easy-to-access location. In today’s digital world, it’s also crucial to create a secure list of your online accounts and passwords, as most financial institutions no longer send paper statements. This organizational step provides your loved ones with a clear roadmap of your assets and liabilities if they ever need to step in and help.

Step 2: Review Your Beneficiary Designations

This is one of the most common and costly mistakes in estate planning. Many of your most valuable assets, such as life insurance, annuities, and retirement accounts (IRAs, 401(k)s), are distributed based on the beneficiary you have named on the account, not the instructions in your will. After a major life event, like a death or divorce, it is essential to review these designations. Failing to do so could result in your assets going to an ex-spouse or, if a beneficiary has passed away, ending up in your probate estate where they are vulnerable to creditors.

Step 3: Have Your Legal Documents Professionally Reviewed

Your legal needs change as you age. The simple will or power of attorney you created when you were younger is likely insufficient for the challenges you may face as a senior. Families with young children need documents that establish a guardianship for their kids. Seniors, however, have additional concerns, such as asset protection and long-term care planning, which require more robust and specialized documents.

An experienced elder law attorney can review your existing plan to ensure it can withstand a long-term care crisis and help you access benefits like Medicaid if needed. This is the cornerstone of a plan that protects your assets and secures your family’s future.

Call our office at (919) 256-7000 to schedule a consultation.