With the hustle and bustle of the holidays nearly upon us, take advantage of the calm before the storm to do a quick check up on your estate plan. The end of the year is always a good time to reassess your plan and make any necessary revisions. With that in mind, we’ve compiled a quick checklist to help you decide if you need to update your estate plan.
- Review your will. Have you experienced any life changes that would affect your plans? Does your current will still reflect your wishes? Are your beneficiaries up to date?
- Are you able to or do you want to meet the financial gift limit? The current annual gift tax exemption is $19,000 per individual (as money or property) to an unlimited number of people without having to file a gift tax return or go against the lifetime exemption.
- Are your life insurance and retirement plan beneficiaries correct? Life happens and sometimes beneficiaries change. Check your life insurance and retirement accounts to make sure your beneficiaries are up to date.
- What about your medical directives and powers of attorney? If it’s been a while since you read through these documents, now is a good time to ensure they still align with your wishes.
- Perform a quick analysis of your assets. Have you bought or sold a property or another item of value that would have been a part of your estate? A quick audit of your transferable assets may require you to update a trust or will.
- Are your trusts still aligned with your needs? Or are you ready to create a new trust? Trusts are designed to preserve wealth, avoid probate, reduce tax burdens, and make estate management easier. Make sure your trusts, if you have them, are adequate for your needs. And if you haven’t created a trust, but your net worth has grown, consider creating one.
- Is your family aware of your plan? Family holiday gatherings are fortuitous in multiple ways, one of which is having your loved ones together so you can discuss your plans or any changes to those plans.
- Are your professional advisors all on the same page? Make sure your estate planning attorney, financial advisor, and Certified Public Accountant (CPA) are all up to date on your estate plan.
Need assistance creating or updating an existing estate plan? Wills and Wellness can help!
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