As the end of the year approaches, it's an ideal time to evaluate your financial and estate planning goals. Taking time to review your estate plan ensures it aligns with your current financial situation, family needs, and future goals. Here's a checklist of estate planning essentials to help you close the year on solid footing.

1. Review and Update Your Will

Life changes—such as marriage, divorce, the birth of a child, or the death of a beneficiary—may require adjustments to your will. Make sure:

• All beneficiaries and executors are up to date.
• Specific bequests reflect your current intentions.
• Contingency plans are in place for unforeseen circumstances.

2. Evaluate Your Beneficiary Designations

Beneficiary designations on life insurance policies, retirement accounts, and payable-on-death accounts often supersede what's in your will. Confirm:

• Designations match your estate planning goals.
• Contingent beneficiaries are listed to account for unexpected changes.

3. Reassess Your Powers of Attorney

Your powers of attorney for finances and healthcare decisions should reflect individuals you trust implicitly.

• Review the appointed agents for your financial and healthcare powers of attorney.
• Consider whether their ability to act on your behalf is still appropriate.
• Ensure these documents are properly executed according to Pennsylvania law.

4. Confirm Your Living Will or Advance Healthcare Directive

Your living will specifies your wishes for medical treatment if you cannot communicate them yourself. Check that:

• It clearly reflects your preferences.
• Copies are accessible to your healthcare agent and primary care physician.

5. Assess Gifting Strategies

The end of the year is an opportune time to take advantage of annual gift tax exclusions. In 2024, the exclusion allows you to give up to $18,000 per individual without affecting your lifetime exemption.

• Consider gifting to loved ones or funding college savings plans.
• Ensure gifts align with your overall estate planning strategy.

6. Review Trusts

If you have established trusts, review their terms and funding. Ensure:

• Trusts are adequately funded.
• Trustees are managing assets as intended.
• The trust aligns with your long-term goals and any recent legal changes.

7. Maximize Retirement Contributions

Estate planning and retirement planning often go hand in hand. Ensure you:

• Max out contributions to retirement accounts like IRAs and 401(k)s.
• Confirm beneficiary designations on these accounts align with your estate plan.

8. Address Charitable Giving

If charitable giving is part of your estate plan, the year-end is the perfect time to finalize contributions. Consider:

• Direct donations to charities to reduce taxable income.
• Donor-advised funds for larger or ongoing contributions.

9. Review Your Insurance Coverage

Life insurance plays a vital role in estate planning. Evaluate:

• Whether your coverage adequately protects your loved ones.
• Policy ownership to ensure proceeds align with your estate plan.

10. Meet with Your Estate Planning Attorney

Year-end is the perfect time to schedule a consultation with your attorney to discuss updates or concerns. If you are a current Pennsylvania resident, an experienced Pennsylvania estate planning attorney can help ensure your plan complies with state laws and optimally reflects your wishes.

Start the New Year with Confidence

Taking these steps now can save your loved ones significant time, expense, and stress in the future. A proactive approach to estate planning ensures that your financial and personal legacy is protected.

If you'd like assistance reviewing or updating your estate plan, schedule your free consultation today by using the link below. Let's prepare for the new year together!

https://letsmeet.io/scottlynett/free-15-min-consult-phone