Summer often brings a slower pace, family vacations, and a little extra breathing room in our schedules. While many families use this time to tackle home projects and plan getaways, it’s also the perfect opportunity to review something equally important: your financial and legal documents.
Life changes quickly. Marriages, births, new homes, retirement plans, and even changes in health can impact whether your documents still reflect your wishes. Taking a few hours this summer to review these important items can provide peace of mind and help ensure your family is protected when it matters most.
Here are five essential documents every family should revisit.
1. Your Will
A will is one of the most important documents you can have, yet many people either don’t have one or haven’t updated it in years.
Your will outlines:
- How your assets should be distributed
- Who will serve as executor of your estate
- Guardians for minor children
- Any specific wishes regarding personal property
A good rule of thumb is to review your will whenever there is a major life event, such as:
- Marriage or divorce
- Birth or adoption of a child
- Death of a beneficiary or executor
- Significant changes in your financial situation
- Moving to another state
Even if none of these events have occurred, reviewing your will every few years helps ensure it still aligns with your goals and family circumstances.
2. Beneficiary Designations
Many people are surprised to learn that beneficiary designations often override instructions in a will.
Accounts that commonly have beneficiaries include:
- Retirement accounts (401(k)s, IRAs)
- Life insurance policies
- Annuities
- Transfer-on-death investment accounts
Outdated beneficiaries can create unintended consequences. For example, an ex-spouse or deceased family member could still be listed if you haven’t reviewed your paperwork in years.
Take time this summer to verify:
- Primary beneficiaries are correct.
- Contingent beneficiaries are listed.
- Names and contact information are current.
This simple review can prevent significant headaches for your loved ones later.
3. Powers of Attorney
A financial power of attorney allows someone you trust to make financial decisions on your behalf if you become unable to do so.
Without this document, your loved ones may need to go through a costly and time-consuming court process to gain authority to manage your affairs.
Ask yourself:
- Is the person you’ve designated still the right choice?
- Have relationships changed?
- Do they know where the document is located?
Once these documents are created, they’re often overlooked. Taking a few minutes to review them can confirm they still reflect your wishes and current circumstances.
4. Healthcare Documents
Healthcare documents are just as important as financial ones.
These may include:
- Healthcare power of attorney
- Advance healthcare directive
- Living will
- HIPAA authorization forms
These documents help communicate your medical preferences and identify who can make healthcare decisions if you’re unable to speak for yourself.
While it’s not always comfortable to discuss these topics, having clear instructions in place can remove uncertainty and reduce stress for family members during difficult times.
Summer family gatherings can actually provide a natural opportunity to have these important conversations.
5. Emergency Information and Financial Inventory
If something unexpected happened tomorrow, would your loved ones know where to find your important information?
Every family should maintain a simple financial inventory that includes:
- Bank and investment accounts
- Insurance policies
- Mortgage information
- Contact information for financial and legal professionals
- Password management instructions
- Locations of important documents and safe deposit boxes
This doesn’t have to be complicated. A simple checklist stored securely can make an enormous difference during an emergency.
Reviewing and updating this information annually helps ensure your family isn’t left searching for answers during an already stressful time.
A Summer Checkup for Peace of Mind
Just as we schedule annual physicals and routine home maintenance, our financial and legal documents deserve regular attention too.
Taking a few hours this summer to review these five important documents can help:
- Protect your loved ones
- Reflect your wishes and preferences
- Avoid unnecessary legal complications
- Provide confidence that your plans are up to date
If it’s been several years since you’ve reviewed your estate and financial documents, or if you’ve experienced significant life changes, it may be time for a conversation with your financial advisor and estate planning attorney.
A little preparation today can help provide tremendous peace of mind for tomorrow.
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