As the year winds down, many of us naturally reflect on what matters most: family, security, and planning for the future. Between gatherings, celebrations, and wrapping up the year’s loose ends, it’s also an ideal time to review and update your estate plan.
Why Year-End Is the Right Time
The end of the year brings both practical and emotional reasons to revisit your plan.
- Life Changes Happen: New marriages, births, divorces, or the passing of loved ones often occur during the year. These events may affect who you’ve designated as beneficiaries, guardians, or executors.
- Financial Shifts: Bonuses, investment changes, or the sale or purchase of property can alter your financial picture, meaning your estate plan should adjust accordingly.
- Tax Law Updates: State and federal laws often change. For instance, this past year was marked by uncertainty about the federal estate tax exemption, which was set to sunset on December 31, 2025 (it is not, as the current level was extended in the law passed in July).
By reviewing your plan now, you can ensure your documents reflect the most accurate and beneficial structure for the year ahead.
What to Review
A year-end check doesn’t necessarily mean rewriting your entire plan. Start with these key areas:
- Will: Perform a quick review of your Will to make sure your wishes haven’t changed.
- Beneficiary Designations: Make sure your will, trust, and insurance policies reflect your current wishes.
- Powers of Attorney and Health Care Directives: Confirm that your appointed agents are still appropriate and willing to serve.
- Asset Ownership: If you purchased or sold property this year, or opened new accounts, verify that titles and beneficiary designations align with your plan.
- Digital Assets: Don’t forget to include access to important online accounts, financial platforms, and passwords in your planning.
The Gift of Peace of Mind
Updating your estate plan during the holiday season is a meaningful way to protect the people you care about. It ensures that your intentions are clear, reduces the potential for conflict, and provides your loved ones with certainty in uncertain times. At Bayer Law, we encourage clients to treat estate planning as an ongoing conversation, not a one-time task. A simple review every couple of years, or when significant changes occur, helps keep your plan effective and your family protected.
If you haven’t reviewed your estate plan recently, or you’ve experienced changes this year, now is the perfect time to schedule a year-end checkup. Contact us today to schedule some time (or just say to say hello!).