End-of-the-Year Estate Planning Checklist

Ensuring Peace of Mind for the New Year

As the year comes to a close, it’s the perfect time to reflect on your personal and financial goals and ensure your estate plan aligns with your current circumstances. Here’s an end-of-the-year checklist to help you review and update your estate plan so you can enter the new year with peace of mind.

1. Review Your Will and Trusts

Life changes such as marriages, divorces, births, and deaths can significantly impact your estate plan. Take a moment to:

• Confirm that the beneficiaries named in your will and trusts are accurate.
• Ensure your chosen executor or trustee is still the best person for the role.
• Check whether your assets are properly titled in the name of your trust (if applicable).

2. Update Beneficiary Designations

Certain assets, like retirement accounts, life insurance policies, and payable-on-death accounts, pass directly to beneficiaries outside your will or trust. Verify that:

• Beneficiary designations are up to date.
• Contingent beneficiaries are named in case the primary beneficiary cannot inherit.

3. Assess Guardianship Provisions

If you have minor children, review the guardians named in your estate plan. Make sure:

• The designated guardians are still willing and able to take on the responsibility.

Any backup guardians are also reviewed and updated if needed.

4. Evaluate Your Powers of Attorney

Powers of attorney for health care and finances are critical components of any estate plan. Confirm:

• The individuals named as your agents are still appropriate and willing to serve.
• Your documents comply with current state laws.

5. Consider Tax Implications

Year-end is a good time to consult your financial advisor or estate planning attorney about tax planning strategies. Think about:

• Utilizing the annual gift tax exclusion to reduce your taxable estate.
• Reviewing your estate plan in light of any recent changes to federal or state tax laws.

6. Take Stock of Your Assets

Compile a comprehensive list of your assets, including:

• Bank accounts, investment accounts, and retirement plans.
• Real estate and personal property.
• Digital assets like cryptocurrency, online accounts, and intellectual property.

Ensure all assets are accounted for and align with your estate plan.

7. Address Digital Estate Planning

In today’s digital world, it’s essential to include digital assets in your estate plan. Update:

• Login credentials and passwords in a secure location.
• Instructions for handling online accounts, social media profiles, and other digital property.

8. Communicate Your Wishes

Open communication with your loved ones can prevent confusion and conflict later. Consider:

• Sharing the location of important documents, such as your will, trust, and powers of attorney.
• Discussing your wishes with your family and appointed fiduciaries.

9. Schedule a Meeting with Your Estate Planning Attorney

An annual review with your estate planning attorney ensures your plan remains effective and up to date. Discuss:

• Changes in your personal life or financial situation.
• New laws or regulations that may impact your plan.

10. Plan for Charitable Giving

If philanthropy is part of your legacy, year-end is a great time to:

• Make charitable donations to reduce taxable income.
• Include charitable bequests in your estate plan.

11. Prepare for the Unexpected

Life is unpredictable, but your estate plan can provide security. Ensure:

• You have adequate life insurance coverage.
• Your plan includes contingencies for incapacitation or sudden changes.

Final Thoughts

The end of the year is a natural time to tie up loose ends and prepare for the future. By reviewing and updating your estate plan now, you can protect your loved ones, secure your legacy, and approach the new year with confidence. If you need assistance or have questions about your estate plan, our firm is here to help. Contact us today to schedule a consultation.

Contact us at contact@jlonglaw.com or 312-344-3644 to discuss your particular case.