5 Legal Resolutions to Consider for 2008 Text Size:

Many people make health-related resolutions, such as losing weight or quitting smoking, for the New Year. Others make resolutions related to their financial health, for example, to start saving for retirement or to pay down debt. But a lot of people should make some legal resolutions for the New Year, particularly if they've had a major change in their family--like a birth, death, marriage or divorce--or if their personal circumstances have changed. Here are some legal resolutions you should consider making for 2008.

If you've recently had a child: I will prepare a will, or will update my will if it hasn't been updated since my child was born. As a responsible parent, you owe it to your child to have a will, because a will enables you to name a guardian for your minor children in the event of your death. You can also designate a trustee to manage the money your child inherits until your child is legally an adult.

If you've recently gotten married: I will talk to my spouse and my lawyer, and we'll update legal documents accordingly. No one likes to think about worst-case scenarios. But you, your new spouse and an attorney should sit down to discuss your legal issues, and decide how you'd like your spouse to proceed (and vice versa) should something happen to you. Two of the more important documents you should review are your will and your power of attorney. Particularly if you and/or your spouse have children from another marriage, you'll want to write a new will that takes into consideration your new spouse, your children from a prior marriage and your spouse's children from a prior marriage. You should also consider giving one another power of attorney, which authorizes your spouse to make certain decisions and legally act as your representative in your absence. Your attorney can help you determine which types of power of attorney are best for you.

If you've recently gotten divorced: I will ensure that all of my divorce documents are signed and filed, and I will meet with my lawyer to update my other legal documents. Many people have heard a story about a couple who thought they were divorced, only to learn that the dissolution was never finalized. When you think your divorce is final, double check with your lawyer and ask, "Is there anything that still needs to be signed by me or my ex? Can I have copies of all papers that have been filed with the courts?" After the divorce is complete, take the time to do a top-to-bottom review of your other legal documents. Do you need to rewrite your will? Should your durable power of attorney and medical power of attorney be changed? Is your ex-spouse listed as a beneficiary on any of your insurance policies, property titles or financial accounts? These documents should all be updated immediately.

If you are having financial problems: I will not ignore my money problems, and will talk to professionals in an effort to solve these problems. When creditors are calling, your checks are bouncing and the mortgage hasn't been paid in months, it may seem easiest to ignore the problems in hopes that they'll go away. Your bills start to accumulate--unopened. You screen your phone calls. You avoid people and businesses to which you owe money. But financial problems are not something that will go away on their own. If you confront the problem head-on, you may be surprised to learn that some of the pressure is diminished, and creditors will try to work with you if you're honest with them. Pick up the phone to call your creditors. Tell them that you're having problems, and ask whether they're willing to work with you. Don't make promises to creditors without considering the ramifications, but once you've talked to them, also talk to an attorney who specializes in bankruptcy. He or she will help you evaluate your options, and may be able to help negotiate your debts.

If you have a will that hasn't been updated in several years: I will check my lawyer to see if any recent changes to inheritance or tax laws have affected my estate planning. Federal and state inheritance tax laws change on a regular basis. If you haven't recently updated your will, contact your lawyer and ask for a quick legal review of your will. Will any recent changes to the law have an effect on your estate-planning intentions? If so, your lawyer may be able to recommend changes to your will that will preserve your intentions while minimizing the effects on your heirs.