End of Year Review of Your Estate Plan
As 2024 ends, it’s a perfect time to review your estate plan to ensure that it aligns with your current circumstances and goals. Reviewing your estate plan can also help you make appropriate changes that will maximize the effectiveness of the estate plan while making sure your loved ones are protected.
Reviewing Your Beneficiaries
A vital aspect of your estate plan is ensuring your beneficiary designations are up to date. Beneficiaries are named on accounts like retirement accounts, payable-on-death accounts and life insurance policies.
When reviewing your beneficiaries, here are 3 things to consider:
1. Life changes: Have any of your relationships changed? For example, did you recently get married or are you recently divorced? Did you welcome a new baby?
2. Accuracy: Make sure all information is correct, that includes spelling, contact information and address. Ensuring that all this information is correct will help you avoid any complications.
3. Contingent beneficiaries: Check on your primary beneficiary. If they can’t inherit, do you have a contingent beneficiary named?
Updating Your Will and Trust
In addition to reviewing your beneficiaries is reviewing and updating your will and trust. This ensures that your wishes and desires are reflected in your will. If you experience any financial changes, these will also need to be updated accordingly in your will.
Additionally, if you have more than one trust, make sure you review all terms and provisions, and that you have named your trustees and beneficiaries.
Maximizing Annual Gifting
Many people take advantage of annual gifting at the end of the year. This is because the federal government allows individuals to gift a certain amount of money each year without incurring gift taxes.
Here are 2 things to consider if you’re interested in gifting:
1. Strategic gifting: Gifting to a charitable organization, family members, or friends can help reduce your taxable estate, while providing financial support to your loved ones.
2. Medical and educational expenses: Did you know you can also pay for an individual’s tuition or medical expenses? As long as the payments are made directly to the educational or medical institute, they will not count against the annual gift tax exclusion.
Preparing for 2025
Finally, as you prepare for the new year, make sure you are prepared for any anticipated charges or needs. Proactive planning is essential to ensuring your estate plan remains aligned with your goals.
Don’t forget to review your financial accounts, insurance policies and if your state has an estate tax, be sure to plan for that as well.
Set Your Plans in Place
Taking the time to review your estate plan at the end of the year can set you up for success and provide you peace of mind as you enter a new year.
Working with an experienced attorney can provide personalized support and guidance. Oklahoma attorney, Kevin L. Miller, PC has helped all kinds of individuals and families for over 35 years. He specializes in estate planning, probate and elder law.
He says, “My commitment to you is to listen, to help you determine your needs and goals, and to develop an estate plan tailored to meet your particular circumstance. You will be provided with a high level of personal service with an attention to all the details.”
Set your plans in place and make sure your loved ones are protected. Call Kevin L. Miller, PC today at (405) 443-5100.
Reference: https://www.docrlaw.com/articles/year-end-estate-planning-checklist-reviewing-your-plan