As the new year approaches, now is the perfect time to review your estate plan to ensure it reflects your current circumstances and future goals. Whether you’ve recently experienced significant life changes or haven’t revisited your plan in years, this checklist will help you stay on track.
Why Update Your Estate Plan?
Your estate plan should evolve with your life. Changes in family dynamics, tax laws, or personal finances can all impact the effectiveness of your plan. An outdated estate plan may not account for new assets, beneficiaries, or legal requirements, leaving your loved ones vulnerable to confusion or disputes.
2025 Estate Plan Checklist
1. Review Your Will and Trusts
Ensure your will and any trusts accurately reflect your wishes. Are your named beneficiaries up to date? Since your last update, have you added significant assets, like real estate or investments?
2. Check Power of Attorney Designations
Verify that your financial and healthcare power of attorney designations are current. These critical roles require individuals you trust implicitly.
3. Update Guardianship Provisions
If you have minor children, confirm that your guardianship designations align with your current preferences.
4. Review Beneficiary Designations
Accounts like life insurance policies, retirement plans, and payable-on-death accounts often bypass your will. Confirm that the beneficiary designations are accurate and align with your broader estate plan.
5. Plan for Tax Efficiency
2025 may bring updates to tax laws that could affect your estate. Consider strategies like gifting, charitable contributions, or establishing a family trust to minimize tax liabilities.
6. Inventory Your Assets
Compile a comprehensive list of assets, including bank accounts, real estate, investments, and personal property. This helps ensure that nothing is overlooked in your estate plan.
7. Consult Your Attorney or Financial Advisor
Estate planning laws vary by state and can be complex. Regularly consulting with professionals ensures your plan complies with current laws and meets your goals.
Act Today
The start of a new year is an ideal time to revisit your estate plan. Don’t wait until it’s too late—proactively addressing potential issues now can save your family stress and financial burdens later. Contact us to schedule a consultation and ensure your estate plan is ready for 2025 and beyond.