Legal Spring Cleaning and Refreshing Your Affairs

Springtime is the time of year to start fresh. This ritual does not just apply to clearing the clutter, refreshing the inside of your house, and completing home improvement projects. It is also a good time to organize and review your legal affairs. As time goes on, your legal needs may change.

The following five spring cleaning steps are meant to embrace the spirit of the season and help you consider whether your documents are aligned with your existing needs and goals.

Step 1: Organize Legal Records
Spring is an ideal time to organize and securely store your legal documents, including any contracts, deeds, or tax records, and to save your documents digitally to increase security and improve accessibility. Are your documents saved in a fireproof safe or inside of a box down in your basement? It is important to know where your important legal and personal documents are stored to ensure that they are secure and can be quickly and easily accessed, if necessary.

Step 2: Review Estate Planning Documents
It is wise to review and update as necessary your estate planning documents (i.e. wills, trusts, guardianship, healthcare proxy, powers of attorney) with a legal professional to ensure that they appropriately reflect your current wishes, family composition, or financial situation. Similarly, it is important to consult with a legal professional to assess whether it is necessary to make any adjustments to your plan in light of any changes to relevant laws. If you have been intending on completing your estate planning but have not yet, consult with a professional this spring and cross it off your to-do list!

Step 3: Review Insurance Coverage
It is important to review and evaluate the scope of coverage for your various insurance policies (i.e. homeowner insurance, umbrella insurance, automobile insurance, flood insurance) to ensure  that they provide adequate coverage. Carefully consider any limits or exclusions to your polices and consult with the appropriate professional if you are unsure about the scope of your coverage or are considering adjusting your coverage.

Step 4: Consider Tax Planning
Consulting with the appropriate tax professionals during the spring allows you to plan for the year ahead. It is important to proactively plan to optimize your financial strategies and minimize tax liabilities as much as possible.

Step 5: Evaluate Service Contracts
It is also wise for homeowners to review contracts for services (i.e. oil delivery, pest control, home security monitoring, property maintenance) to ensure that their needs are satisfied, and the  pricing and terms are still favorable.

This article appeared in the April 2024 issue of Stroll Lloyd Harbor.