As one year winds to a close and another begins, now is the perfect time to review your estate plan and ensure everything is in order. This is especially true if it has been a few years since you and your estate planning attorney sat down to craft your Will, Trust, Power of Attorney, and other critical legal documents. After all, life changes such as marriage, divorce, the birth of a child, death, and even opening or selling a business can all impact the effectiveness of your estate plan over time. If you would like to discuss your existing estate plan or start creating one before the year ends, our team is here to help.
In the meantime, our attorneys have compiled eight year-end estate planning tips for you to consider.
Review beneficiary designations
Look closely at the beneficiaries listed on your retirement accounts and life insurance policies. Changes in relationships (e.g., marriage, divorce, new children) and even the untimely passing of an intended beneficiary may require updates to ensure your current wishes are reflected and that your assets end up in the right hands after you are gone.
Consider life changes
To piggyback on the previous tip, it is important to consider major life events since you initially set up your estate plan. Getting married, having a new child or grandchild, or losing a loved one may necessitate changes to your estate plan in other ways besides beneficiary designations. Additionally, you may want to consider updating your estate plan if you have children who may struggle with managing money, are going through their own divorce, or have special needs.
Protect new assets
If you have purchased a new home, sold a business, or received an inheritance, ensure these assets are included in your year-end estate planning adjustments. Doing so may help you avoid probate and other potential complications.
Consider long-term planning
None of us are getting any younger. Therefore, there is no time like the present to explore options for protecting your assets in case you need nursing home care in the future. This can help safeguard your estate and provide peace of mind for you and your loved ones as you move forward in 2025.
Review insurance coverage
Beyond traditional estate planning, take a moment to review your car and homeowner’s policies to ensure you have the proper coverage and that the coverage limits are adequate. It is also a good idea to speak with your insurance agent about discounts you might be eligible for, such as good-driver credits or senior discounts.
Fund your Revocable Trust
If you have a Revocable Trust, all relevant assets should be properly titled in the name of the Trust. This includes re-titling real estate, non-business bank accounts, non-retirement brokerage accounts, and other assets to avoid probate and ensure a smooth transition for your intended beneficiaries.
Update your healthcare Power of Attorney
It is essential to have your healthcare and financial Power of Attorney documents in place, especially if you become medically incapacitated to the point where you are still alive but cannot make important decisions on your own. This document ensures that your healthcare and financial decisions are handled according to your wishes.
Discuss your plan with your family
Open communication is crucial to prevent conflict and ensure your wishes are honored. Consider scheduling a time to review your estate plan with your spouse, adult children, parents, and other key family members.
By reviewing and updating your documents now, you can ensure the protection of your loved ones, the distribution of your assets according to your intentions, and the avoidance of potential conflicts in the future.
Call Nelson Law Group Today!!
Having an estate planning attorney in your corner is imperative if your goals are to protect your family’s future for years to come. Call our knowledgeable staff at Nelson Law Group, PC if you have any questions. Our staff is always available.
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