As the year comes to a close, it’s the perfect time to ensure your estate plan reflects your goals, adapts to recent life changes, and takes advantage of the latest tax strategies. Small steps now can make a big difference in protecting your legacy and providing peace of mind for you and your loved ones.
Here’s your step-by-step guide to closing out the year with confidence:
Confirm and Update Beneficiary Designations
Beneficiary designations on retirement accounts, life insurance policies, and other financial tools often override what’s written in your will or trust. Review these designations to ensure they reflect your current wishes.
✔ Action Step: Verify all beneficiary details, including names and contact information, to prevent administrative headaches later.
Review and Refresh Your Estate Plan
Life moves fast—your estate plan should keep up. Review your will, trusts, and other key documents to ensure they align with your current family dynamics and financial goals. Major life events—like marriages, divorces, births, or losses—are prime reasons to update your plan.
✔ Action Step: Confirm that executors, trustees, and agents under powers of attorney are still appropriate for their roles.
Organize and Secure Your Estate Planning Documents
Your estate plan is only effective if it’s accessible when needed. Use the Gentreo Digital Vault to securely store and share essential documents like wills, healthcare proxies, and powers of attorney.
✔ Action Step: Upload your documents to the Gentreo Digital Vault and grant access to trusted individuals.
Optimize Retirement Account Distributions
If you’re required to take minimum distributions (RMDs) from retirement accounts, be sure to complete them by December 31 to avoid penalties. Even if you’re not required, strategic withdrawals or a Qualified Charitable Distribution (QCD) can help you meet financial goals.
✔ Action Step: Talk to your financial advisor to ensure your distributions align with your tax and estate planning strategy.
Take Advantage of Year-End Gifting
Did you know you can gift up to $18,000 per recipient in 2024 without impacting your lifetime estate tax exemption? Gifting can reduce your taxable estate while supporting loved ones or causes close to your heart.
✔ Action Step: Check with an estate planning attorney to ensure your gifts don’t unintentionally impact benefits like Medicaid.
Conduct a Family Meeting
Sharing your estate planning wishes with loved ones helps avoid misunderstandings and creates clarity for the future. Year-end gatherings are a great opportunity to have these conversations.
✔ Action Step: Use this checklist as a discussion guide to share your goals and decisions with your family.
Consider Tax-Efficient Strategies
Look for opportunities to minimize taxes before year-end:
- Donate appreciated assets to reduce capital gains taxes.
- Contribute to 529 plans to lower taxable income in some states.
✔ Action Step: Consult with a tax professional to explore these strategies and how they fit into your overall estate plan.
Plan for the Unexpected
Life is full of surprises—your estate plan should be prepared for them. Make sure you’ve designated alternates for key roles, and ensure business ventures are protected with a succession plan if needed.
✔ Action Step: Add contingency plans and alternates to your estate plan for peace of mind.
Schedule Your Annual Estate Plan Review
Your estate plan isn’t a one-and-done process. Regular reviews ensure it’s up-to-date with changes in your family, finances, or the law.
✔ Action Step: Visit Gentreo, www.gentreo.com, to ensure your plan continues to meet your goals.
Reflect on Legacy Goals
What do you want your legacy to be? Whether it’s financial security for your family, charitable giving, or a unique goal, your estate plan is a tool to make it happen.
✔ Action Step: Revisit your legacy goals and adjust your plan as needed to align with your vision.
Let Gentreo Make Estate Planning Simple
Estate planning doesn’t have to be overwhelming. Gentreo is here to help you stay organized and confident every step of the way.
✔ Action Step: Start or update your estate plan today at www.gentreo.com.
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Don’t wait until it’s too late; start your estate planning journey with Gentreo today. By doing so, you’ll not only protect your loved ones but also gain the peace of mind that comes with knowing your legacy is secure. Click HERE to join now.
This article is for informational purposes only and should not be considered legal advice. Consult with a qualified attorney or estate planning professional for personalized guidance.
