Estate planning assessments are an essential aspect of managing your assets and ensuring that your wishes are carried out after you pass away. These assessments, which are typically conducted at the end of the year, help you to review and update your estate plan, so that it remains current and effective.
It is important to conduct these assessments to ensure that your assets will be distributed according to your wishes, that your estate plan accounts for any changes in your family circumstances, and that your assets are managed efficiently. It also provides an opportunity to review and update your gifting strategy and powers of attorney.
Consult with an estate planning attorney to ensure that your plan is up to date and that it meets your specific needs. Here are some of the key reasons why year-end estate planning assessments are important:
Review of Beneficiary Designations
Beneficiary designations on assets such as life insurance policies, retirement accounts, and bank accounts supersede the instructions in your will or trust. Reviewing these designations at the end of the year can ensure that your assets will be distributed according to your wishes.
Update of Estate Planning Documents
Estate planning documents such as wills and trusts should be reviewed periodically to ensure that they still reflect your current wishes. Reviewing these documents at the end of the year can help you to make any necessary changes to your estate plan.
Tax Planning
Year-end estate planning assessments provide an opportunity to review your estate plan in light of any new tax laws or changes in your financial situation. For example, the new tax laws may affect the amount of estate taxes that will be owed on your assets.
Changes in Family Circumstances
Life events such as marriage, divorce, birth, or adoption can have a significant impact on your estate plan. Reviewing your estate plan at the end of the year can help you to ensure that your plan accounts for any changes in your family circumstances.
Asset Management
Reviewing your estate plan at the end of the year can help you to identify any assets that should be added or removed from your plan. This can ensure that your assets are managed in the most efficient way possible.
Gifting
Year-end estate planning assessments provide an opportunity to review your gifting strategy. The annual exclusion gift tax amount is indexed for inflation and changes every year. Reviewing your gifting strategy can help you to make the most of the annual exclusion and minimize the potential gift and estate tax liability.
Powers of attorney
Reviewing your powers of attorney at the end of the year can help you to ensure that they are still in effect and that the individuals you have designated as your agents are still willing and able to act on your behalf.
Year-end estate planning assessments are important because they provide an opportunity to review and update your estate plan. By conducting these assessments, you can ensure that your assets will be distributed according to your wishes, that your estate plan accounts for any changes in your family circumstances, and that your assets are managed efficiently. It also provides an opportunity to review and update your gifting strategy and powers of attorney. At Protect Wealth Academy we provide the best estate planning attorneys to ensure that your plan is up to date and that it meets your specific needs.
