As the year winds down, it’s the perfect time to take stock of your estate plan and ensure everything is in order. The end of the year often brings reflection, resolution-making, and a focus on family, making it an ideal time to prioritize your planning. Here are the essential steps to consider for year-end estate planning to protect your family and secure your legacy.
1. Review Your Current Estate Plan
Life is dynamic, and your estate plan should reflect your current circumstances. Changes in family dynamics, new assets, or shifts in financial goals may require updates. Consider the following:
- Family Changes: Have you experienced a marriage, divorce, birth, or death in the family this year? These events may require updates to your beneficiaries or guardianship designations.
- Asset Acquisitions: Did you purchase property, invest in a business, or acquire significant assets? Make sure these are accounted for in your estate plan.
- Shifts in Health: If you or a loved one has had a change in health, review your healthcare directives and powers of attorney.
2. Take Advantage of Tax Strategies
The end of the year is a crucial time to evaluate tax-saving opportunities within your estate plan. Consult your financial advisor or estate planning attorney to explore options like:
- Annual Gift Tax Exclusion: In 2024, you can gift up to $17,000 per person without triggering federal gift tax. Consider gifting to loved ones or funding 529 plans for educational expenses.
- Charitable Donations: Reduce taxable income and support causes you care about by making charitable contributions before December 31.
- Trust Funding: If you’ve established a trust, ensure it is properly funded with the assets you intended to include.
3. Organize and Update Key Documents
Gather and review the key components of your estate plan to ensure they are accurate and up to date:
- Last Will and Testament: Confirm your executor, beneficiaries, and asset distribution still align with your wishes.
- Trust Documents: Ensure all trusts reflect your current goals and beneficiaries.
- Powers of Attorney: Check that your designated agents are still appropriate and able to fulfill their roles.
- Healthcare Directives: Update advance directives to include any new medical preferences or contact changes for healthcare proxies.
4. Prepare for New Year Regulations
Estate planning laws and regulations often change at the start of a new year. For example, in 2026, significant changes in federal tax laws could impact exemptions and rates. Work with your attorney now to adjust your plan proactively rather than reactively.
5. Communicate with Family
The holiday season offers a natural opportunity to discuss your estate plan with loved ones. While it may seem daunting, open communication helps set expectations, prevent disputes, and provide peace of mind. Consider discussing:
- Your healthcare wishes.
- The roles and responsibilities of trustees or executors.
- Your intentions for asset distribution.
6. Schedule a Professional Review
If it’s been more than a year since your last estate plan review, schedule a meeting with your estate planning attorney. They can help ensure your plan complies with current laws and that it still aligns with your long-term goals.
Final Thoughts
Year-end estate planning is a gift to yourself and your family. By dedicating time now, you can enter the new year with confidence, knowing your loved ones are protected, and your legacy is secure.
If you’d like help reviewing or updating your estate plan, reach out to our office today. We’re here to make the process simple, doable, and even enjoyable. Let’s ensure you and your family are prepared for whatever the future holds.
Ready to start your year-end estate planning? Contact us today to schedule a consultation.
