New Year, New Estate Plan Review!

The start of a new year is always a time for fresh beginnings. Whether you’re setting goals, decluttering your home, or simply planning for the year ahead, it’s also an ideal time to take a closer look at your estate planning documents. Life moves quickly, and with each passing year, there’s potential for significant changes that may affect your plans for the future.

Why Now is the Perfect Time for an Estate Planning Review?

January often brings renewal and reflection. This makes it the ideal time to review your estate plan. Changes in your life, family, or finances may require updates. Here are key reasons to revisit your estate plan this year.

Key Life Events That Require an Estate Plan Update

1. Family Additions or Losses: Have you welcomed a new child or grandchild into your family? Or perhaps experienced the loss of a loved one? These events may require updates to your will, trusts, or beneficiary designations.
2. Marital Changes: If you’ve gotten married, divorced, or remarried in the past year, your estate plan may need significant adjustments to reflect your new marital status and wishes.
3. Children Reaching Milestones: Have your minor children turned 18 or reached other significant life milestones? They may no longer require guardianship provisions, but you might want to address their financial needs differently.

Financial Changes That Impact Your Estate Plan

1. Asset Changes: Buying or selling real estate, acquiring new investments, or receiving an inheritance are just a few financial changes that could impact your estate plan.
2. Business Ownership: If you’ve started, sold, or grown a business, your estate plan may need to address how that business will be managed or distributed in the future.
3. Tax Law Updates: Tax laws frequently change, and your estate plan should take advantage of any new opportunities to minimize taxes and preserve your legacy.

Essential Estate Planning Documents to Review

When reviewing your estate plan, here are the key documents to revisit:

1. Will: Ensure your will accurately reflects your current wishes regarding asset distribution and guardianship for minor children.
2. Trusts: Review the terms, trustees, and beneficiaries of any trusts you’ve established.
3. Powers of Attorney: Confirm that the individuals named to handle your financial and medical decisions are still appropriate and willing. You may want to speak with an attorney about the Illinois Power of Attorney Act amendments that went into effect January 1, 2025.
4. Beneficiary Designations: Check designations on retirement accounts, life insurance policies, and other assets to ensure they’re up to date.
5. Healthcare Directives: Make sure your living will aligns with your current preferences.

The Importance of Professional Guidance

Estate planning isn’t a one-and-done task. It’s a dynamic process that should evolve with your life. If you’re unsure about how recent changes may affect your plan or want to explore strategies for optimizing your legacy, consulting an experienced estate planning attorney can provide clarity and peace of mind.

Start the Year with Confidence: Schedule a Consultation

By taking the time to review your estate plan now, you’ll set the stage for a more secure and organized future. A little effort today can prevent potential challenges down the road, ensuring that your loved ones are cared for and your wishes are honored.

Let the new year inspire you to take control of your planning. Schedule a consultation with our office to review your estate plan and make 2025 a year of proactive preparation and peace of mind.

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