9 End of Year Estate Planning To-Dos

With mere weeks before the end of the year (and decade), you may be wondering what steps you can take to improve your life and set yourself up for future success. Well, when it comes to estate planning, look no further. Here are our tips for making the most of your estate plan before the year ends: 

If you don’t already have one – create your estate plan!

The end of the year is a great time for reflection and planning, and getting an estate plan in place now is a crucial item to check off your to-do list. I’ve heard lots of reasons why people put off creating an estate plan – everything from time to money to just not knowing where to start. If you don’t feel you have the time to sit down and create an estate plan, hiring an experienced estate planning attorney is a great way to streamline the process and ensure everything is in order. 

If money is your concern, don’t let that stop you from at least getting started on your plan. Estate planning is not one-size-fits-all – get started with the basic documents now (a will, designating roles, and health care documents) and you can always grow your plan in the future. 

Not sure how to get started? My name is Paul Margerie and my passion is helping young families navigate the estate planning process to secure their futures. Give me a call today. 

If you do have an estate plan, update it. 

If you have already begun estate planning, congratulations! You are among the minority of American adults who have already taken this critical step. However, your estate plan is not a set-it-and-forget-it set of documents; it’s an ongoing process that grows and changes throughout your life. The end of the year is the perfect time to make an appointment with your estate planning attorney and review your documents – especially if you’ve experienced changes in your life or finances this year. This is also a great time to get advice from your attorney on how to best navigate the current tax law to maximize your benefit. 

Make tax-free gifts of up to $15,000. 

If you are considering making a significant monetary gift to a friend or loved one, now is the time. Currently, you are able to make a tax-free gift of $15,000 per person per year. So, if you are looking to help your child with the down payment on a house, you can make a gift to them of $15,000 without that money being taxed (i.e. you do not need to report the gift on your taxes). If you are making the gift to your child and their spouse, you can give them $30,000 tax-free (hence the per-person gift tax amount – this gift is going to 2 different people). If you are looking to make a more significant gift than that, talk to your estate planning attorney about the lifetime gift tax exemption, which currently stands at $11.4 million. 

One of the benefits of making large monetary gifts before the end of the year is it decreases the amount of money on which you are taxed. So, if you make three $15,000 gifts, your total taxable income is reduced by $45,000. 

Make sure your health care documents are up to date. 

If you have not started estate planning, getting your health care documents in order is a great place to begin. The following are necessary for anyone over 18 years of age, as that is the cutoff year after which one’s parents or guardians can no longer make medical decisions on your behalf. 

• Healthcare Durable Power of Attorney – this names an individual responsible for making medical decisions on your behalf should you become incapacitated or pass away. 
• HIPPA Authorization – this document gives doctors and other medical professionals the freedom to discuss your medical situation with loved ones. Without it, your parents would not have the right to this information. 
• Revocable Living Trust – in case of incapacity, this allows you to outline what should happen to your assets. Without this document, these decisions are made by the court system. 

Check in on major players in your estate plan. 

One of the most important parts of estate planning is naming people to crucial roles: financial power of attorney, healthcare power of attorney, and guardian for minor children. Things happen, people’s circumstances change, and the person you named three years ago to one of these roles may no longer be the appropriate choice. Especially when it comes to naming a guardian for your minor children, the person you chose to care for them should something happen to you while they are little may not be the same person you would select when they are teenagers. If you don’t make these decisions, the court system will, so now is the time to ensure your estate plan reflects your current wishes. 

Review beneficiary designations. 

Like everything else in life, situations change and the person to whom you designated a portion of your estate may no longer be the right choice. If you have minor children, you might consider setting up designated assets to them in a trust so, should something happen to you while they are still minors, the court system cannot take control of those assets. 

Refresh your insurance portfolio. 

Do you have life insurance? If so, is it enough to cover the needs of your family should something happen to you? The end of the year is a great time to review your insurance portfolio and make any necessary adjustments. While you’re at it, now may also be the time to explore long-term care insurance, which can offset the costs of assisted living, memory care, or in-home support as you age. 

Schedule an estate plan family meeting. 

With everyone gathering together for the holidays, now may be the perfect time to update everyone on your estate plan. The most important people who should know your wishes are those who will play important roles, like whom you’ve named as guardian for minor children, healthcare power of attorney, and financial power of attorney. Additionally, you may want to let your beneficiaries know that they have been named, and discuss your wishes with your family when it comes to what you would like to happen after you pass away. These aren’t the most exciting conversations to have, but the sooner you open these lines of communication, the easier it will be on everyone when the inevitable happens. 

Set goals for the future. 

What do you want your life to look like in 10, 20, or 30 years? The end of the year is the perfect time to reflect on how far you’ve come and to set some goals for your future. Creating an estate plan is about much more than wills and powers of attorney. A comprehensive estate plan is the result of time spent reflecting on what you want your life to be like now, in the future, and your hopes for future generations for your family. This is high-level thinking that takes time, conversation with your loved ones, and lots of soul-searching. So, grab a pen and a journal (or your laptop), find a quiet spot, and get started. 

Need help getting started on your estate plan? I’m Paul Margerie, an experienced estate planning attorney with a passion for helping individuals and families create a secure plan for their future. Give me a call with questions or to get started today.