End-of-year is a good time to reflect on where you’ve been, where you are now, and on what lies ahead. One’s estate plan is, often, reflective of each of these states of life. If you have already completed your estate plan, this checklist provides items for review. If you have yet do complete your estate, these steps can be very wise to consider.
- Review Your Will and Trusts: Ensure that your will and any trusts reflect your current wishes. Update them for any life changes like marriages, divorces, or the birth of children.
- Update Beneficiary Designations: Check all beneficiary designations on accounts like life insurance policies, retirement accounts, and bank accounts. Ensure they align with your current estate plan.
- Consider Gifting: Take advantage of annual gift tax exclusions to give away money or assets. This can reduce your taxable estate and provide support to loved ones.
- Assess Your Powers of Attorney: Review your durable power of attorney and healthcare proxy. Ensure the appointed individuals are still appropriate and understand your wishes.
- Organize Important Documents: Keep all estate planning documents organized and accessible. Create a list of assets, accounts, and passwords for your executor.
- Plan for Digital Assets: Include instructions for your digital assets, like social media accounts and cryptocurrencies. Designate someone to manage these after your passing.
- Review Tax Implications: Consult a tax advisor to understand any changes in tax laws that could affect your estate. This is crucial for maximizing deductions and minimizing liabilities.
- Communicate Your Wishes: Discuss your estate plan with family members. Transparency can help prevent conflicts and ensure everyone understands your intentions.
By taking these steps, you can start the new year with peace of mind knowing your wishes are set and will be honored.
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