As the year draws to a close, now is the perfect time to review your estate plan to make sure it still aligns with your goals and your family’s needs.
With recent changes to estate and gift tax laws (read more here), year-end planning can help reduce taxes, protect your loved ones, and ensure your legacy is secure.
Key Items to Review Before Year-End
1. Review Current Estate Planning Documents
Make sure your estate plan documents such as your will, trust, and powers of attorney reflect any recent life events — marriages, divorces, births, or deaths. Learn more here.
2. Plan for College-Bound Children
College students (over the age of 18 years old) should have important legal documents such as a medical and financial power of attorney. Learn more here.
3. Review Intergenerational Planning
Does your plan support your family’s long-term financial and legacy goals?
Explore intergenerational planning.
4. Confirm Fiduciary Appointments
Double-check your fiduciary appointments such as personal representatives, trustees, guardians, and agents to ensure they are still the right choices and update as needed.
5. Review Asset Ownership and Beneficiaries
Confirm that your asset ownership set up and beneficiary designations, such as retirement plans and life insurance policies, match your estate plan goals. Assets can be owned in many ways such as individually, jointly, or tenants in common so it is important to review current set up based on your goals.
6. Consider Year-End Gifts
Based on the recent law changes, consider making tax-efficient gifts using the annual gift tax exclusion or lifetime gift tax exemption.
7. Evaluate Charitable Giving
If you’re considering year-end charitable donations, explore options like donor-advised funds or charitable trusts to maximize your impact.
8. Business Planning
If you own a business, revisit your succession plan and ensure ownership structures align with your estate plan strategy. Learn more here.
9. Prepare a Family Summary Sheet – Give loved ones access to key details so surprises can be reduced:
- Contact information for your professionals such as attorney, tax preparer, financial advisor, and insurance agent
- Safe deposit box and financial account details
- Passwords or digital access such as for cell phone and computers
- List of major assets
Learn more about important documents here.
10. Coordinate Tax Planning
Meet with your tax preparer to review year-end projections and tax-saving opportunities in light of your estate plan goals.
11. Check in with Your Financial Advisor
Schedule a year-end investment review to rebalance your portfolio and align with your estate plan goals.
Start the New Year Confident with your Estate Plan
If you have questions about how recent tax law changes may affect your estate plan, or if you would like to have assistance in reviewing your current documents, we are here to help.
Contact Jeff Cohen today to schedule your year-end estate planning consultation.
