The beginning of a new year is the perfect opportunity to go through a financial review checklist and revisit your financial, legal, and personal strategies. Here are some key areas to consider as you assess your plans and prepare for the year ahead:
Reflect on Life Events
Life is dynamic, with both expected and unexpected changes shaping your circumstances. Whether it’s a marriage, divorce, birth, death, or a shift in financial status, these events can have a significant impact on your estate plan. Regularly reviewing your plan ensures it remains aligned with your current family structure and relationships.
Evaluate Beneficiaries and Executors
Changes in relationships or circumstances may affect the suitability of your designated beneficiaries and executors. They may no longer be the best fit for their roles, or new individuals in your life might be better suited. Annual reviews help you confirm that these roles are appropriately filled.
Reassess Insurance Policies
As assets such as homes or personal belongings increase in value, your insurance coverage should be updated to reflect these changes. Ensuring your policies provide adequate protection will safeguard you from unexpected losses.
Examine Business Interests and Succession Plans
For business owners, a comprehensive review of your succession plan is vital. Verify that it is well-documented and integrated with your estate plan. Additionally, analyze financial statements, update strategic goals, and assess risk factors like insurance coverage, cybersecurity, and operational vulnerabilities.
Manage Assets Effectively
If you’ve acquired new assets over the year, ensure they are properly titled or transferred into your estate’s trust. Failing to do so can expose these assets to probate and disrupt your intended distribution plan.
Review Your Advisors
As your priorities evolve, so might the expertise you require from your advisory team. Periodic evaluations help identify any gaps and ensure you’re supported by professionals who align with your goals. Strong partnerships with advisors are key to receiving sound guidance.
Refine Personal Goals
Your personal goals—such as philanthropic aspirations, asset sales or acquisitions, or adjusting distributions among heirs—may shift over time. Revisiting these objectives annually helps you incorporate new strategies and refine allocations to meet your evolving priorities.
Taking the time to got through your financial review checklist and review these areas regularly ensures your financial and personal strategies remain aligned with your goals, offering peace of mind and a clear path forward.