The new year is the perfect time to review your estate plan to ensure it still aligns with your goals and current life situation. Changes in laws, finances, or personal circumstances may necessitate updates to your plan. Collaborating with your estate planning attorney now can help secure your legacy and protect your loved ones in 2025 and beyond with these estate planning updates.
Here are some critical estate planning updates and considerations for the new year:
1. Update Beneficiaries
Life changes such as marriage, divorce, the birth of a child, or the passing of a loved one can affect your beneficiary designations. Review your will, trusts, life insurance policies, and retirement accounts to ensure the right people are listed.
2. Review Tax Law Changes
Tax laws frequently change and can significantly impact estate planning strategies. Work with your attorney to understand how new tax regulations, exemptions, or thresholds may influence your estate and adjust your plan accordingly to minimize tax liabilities.
3. Consider a Trust Update
If you already have a trust, now is a good time to ensure it reflects your current wishes and circumstances. For those without a trust, consider setting one up to provide more control over how your assets are distributed and to avoid probate.
4. Reassess Power of Attorney and Healthcare Directives
Ensure your designated power of attorney and healthcare proxy are still the individuals you trust to handle financial and medical decisions on your behalf. Update these documents to reflect any changes in your relationships or preferences.
5. Plan for Digital Assets
Digital assets, such as online accounts, cryptocurrency, and intellectual property, are becoming increasingly important. Create or update an inventory of these assets and include instructions for how they should be managed or transferred.
6. Address Business Interests
If you own a business, review your succession plan or create one if it’s missing. Ensure your business interests are properly integrated into your estate plan to protect the company and its value for future generations.
7. Evaluate Life Changes
Major life events—like purchasing a home, retirement, or receiving an inheritance—may impact your estate plan. These changes should be reflected in your plan to ensure it accurately represents your financial situation and wishes.
8. Protect Your Children’s Future
If you have young children, review guardianship designations and financial arrangements to ensure their future is secure. You may also want to establish or update education savings plans or special needs trusts.
9. Schedule Regular Reviews
An estate plan is not a one-and-done document. Commit to regular reviews with your attorney to keep it up to date as your life evolves. A small annual check-in can save your family time and stress in the future.
Start the Year Off Right
Estate planning isn’t just about your assets—it’s about ensuring your wishes are honored and your loved ones are cared for. By working with our experienced estate planning attorneys to make these updates, you can start the new year with peace of mind. Contact us today to schedule your estate plan review and make 2025 a year of preparedness and security.