Year-End Estate Planning Checklist: What You Should Do Before December 31st

As the year draws to a close, now is the perfect time to reflect on your financial and legal goals. One of the most important tasks to prioritize is reviewing and updating your estate plan. A solid estate plan ensures that your assets are protected, your loved ones are cared for, and your wishes are honored.

Here’s a comprehensive year-end estate planning checklist to help you get everything in order before December 31st.

1. Review Your Will or Trust

Your will or trust forms the foundation of your estate plan. Life changes such as marriage, divorce, the birth of a child, or the acquisition of significant assets may require updates. Ensure your documents reflect your current wishes and circumstances.

2. Check Beneficiary Designations

Certain assets, such as retirement accounts, life insurance policies, and payable-on-death bank accounts, pass directly to the beneficiaries named in your account. Make sure these designations are up-to-date and align with your overall estate plan.

3. Evaluate Your Powers of Attorney

Powers of attorney for financial and healthcare decisions are crucial in case of incapacity. Confirm that the individuals you’ve designated are still willing and able to serve in these roles.

4. Update Your Healthcare Directive

Review your advance directive or living will to ensure it reflects your current preferences regarding medical treatment and end-of-life care.

5. Address Tax Considerations

The end of the year is an excellent time to address tax planning within your estate. Key actions include:

• Making annual tax-free gifts to family or friends (up to the annual exclusion amount).
• Reviewing your estate’s taxable assets and considering strategies to reduce potential estate taxes.
• Consulting with a tax professional to align your estate plan with current tax laws.

6. Organize Your Documents

Ensure your estate planning documents are easily accessible and stored in a safe place. Share their location with a trusted family member or your executor. Include:

• Your will or trust
• Powers of attorney
• Advance directive
• Insurance policies
• Asset inventory

7. Communicate with Your Loved Ones

The holiday season often brings families together, making it a great opportunity to discuss your estate plan with those impacted by it. Clear communication can help prevent future misunderstandings or disputes.

8. Work with an Estate Planning Attorney

The laws surrounding estate planning can be complex and vary by state. Consulting with an experienced estate planning attorney ensures your plan is legally sound and tailored to your needs.

At Legacy Legal & Business Services PLC, we specialize in helping families create and update estate plans that provide peace of mind.  See our blog on Simplifying Estate Planning: A Step-by-Step Guide.

Why Year-End Planning Matters

Proactively reviewing your estate plan before the year ends allows you to:

• Take advantage of current tax laws.
• Address any life changes from the past year.
• Start the new year with confidence knowing your affairs are in order.

Start 2025 with Peace of Mind

Estate planning is an ongoing process that requires periodic updates to remain effective. By addressing these key items on your year-end checklist, you’ll ensure your estate plan reflects your wishes and protects your loved ones.

If you need assistance updating your estate plan or creating one for the first time, contact us today by visiting our website www.legacylegalbusiness.com or calling us at (616) 681-0100. Our experienced team at Legacy Legal & Business Services PLC is here to help you prepare for a secure and prosperous future.