As the end of the year approaches, many of us find ourselves balancing holiday gatherings, year-end tasks, and planning for the year ahead. While it’s tempting to put estate planning on hold during this busy season, taking a proactive approach now can provide peace of mind, protect your loved ones, and help you start the new year organized and prepared. Here’s how you can tackle your estate plan amid the holiday hustle and bustle:
1. Start with a Quick Estate Checkup
- Just as we check in on our finances, health, and goals before the year ends, it’s equally important to do an estate plan checkup. Take a few moments to review your documents and make sure everything is up-to-date. This is especially crucial if you’ve had any major life changes this year—like a marriage, birth, divorce, or relocation.
2. Prioritize Essential Updates
- If time is tight, focus on key updates to your plan. These include updating beneficiaries, verifying your trustee or power of attorney still aligns with your wishes, and reviewing any new assets you acquired this year. Even minor adjustments can make a significant difference and prevent complications down the road.
3. Plan for Special Circumstances
- The holidays can highlight special circumstances within your family, like the need to create a special needs trust for a dependent or ensuring guardianship plans are in place for minors. This is the perfect time to discuss these sensitive topics with your family and make the necessary updates to your estate plan.
4. Consider Gifting Opportunities
- The end of the year is an ideal time to make tax-efficient gifts to family members. In 2024, you can gift up to $17,000 per person without incurring gift tax. Strategically incorporating gifts into your estate plan can help reduce estate taxes and offer financial benefits for loved ones while you’re here to witness the impact.
5. Secure Important Documents and Information
- If you’re gathering documents for year-end finances, take a moment to organize your estate planning documents as well. Ensure your executor or trustee knows where to find essential documents and passwords, and consider setting up digital backups for easy access in the future.
6. Schedule a Meeting with Your Estate Planner
- Use this time to book an appointment with your estate planning attorney to go over any concerns or questions. An estate planning check-in doesn’t have to be lengthy but can ensure your plan is still aligned with your current wishes and lifestyle.
7. Embrace the Spirit of the Season
- The holiday season is a time for giving and reflecting on what matters most. By prioritizing your estate plan, you’re not only caring for yourself but also showing your loved ones that you’re thinking of their future well-being. This peace of mind is a gift that will endure beyond the season.
Taking a few intentional steps toward organizing your estate plan now can help you tackle the holiday season confidently and enter the new year with clarity and assurance. With a little focus and support, you can turn a busy season into an opportunity to create lasting peace of mind for yourself and your family.
