By Jay Greene–
The start of the year is the perfect time to reflect on your estate planning goals and make resolutions that will ensure your financial and personal affairs are set for 2025. Whether you’re revisiting an existing plan or starting fresh, setting clear estate planning resolutions will make sure you achieve your goal of having peace of mind. Here are some key resolutions to consider as you prepare for the year ahead.
1. Update your estate plan to reflect life changes.
One of the most important estate planning resolutions for 2025 is to ensure your plan accurately reflects any major life changes from the past year. Consider the following:
Marriage or Divorce: If you’ve gotten married or divorced, it’s essential to update your will, trusts, beneficiary designations, and power of attorney to reflect these changes.
Birth or Adoption of a Child: If your family has grown, update your estate plan to include provisions for your new child, such as naming a guardian and updating beneficiary designations.
Death of a Loved One: If a beneficiary or executor named in your estate plan has passed away, make the necessary changes to ensure your plan is up to date. You might consider if your agents are still able to act as power of attorney or health care agent due to their age or disability.
2. Reassess your financial situation.
The start of a new year is an ideal time to review your financial situation and adjust your estate plan accordingly. Here’s what to consider:
Asset Valuation: Reassess the value of your assets, including real estate, investments, and personal property. If your financial situation has changed significantly, you may need to revise your estate plan to account for these changes.
Debt Management: Evaluate your current debts and how they might impact your estate and long-term care costs. Consider strategies to reduce or eliminate debt to maximize the assets that will be passed on to your beneficiaries.
Retirement Planning: Ensure that your retirement accounts are properly aligned with your estate plan, including updated beneficiary designations and withdrawal strategies.
3. Set up or update a living trust.
A living trust is a powerful tool that can help avoid probate, reduce estate taxes, and provide for the management of your assets if you become incapacitated. If you don’t already have a living trust, consider setting one up as part of your 2025 resolutions. If you already have a trust, take time to review and update it to ensure it still aligns with your goals.
4. Plan for long-term care.
As you plan for the future, it’s important to consider how you will manage potential healthcare needs. Long-term care planning is an essential component of a comprehensive estate plan.
Long-Term Care Insurance: Evaluate whether long-term care insurance is right for you, especially given the high cost of healthcare in the Bay Area.
Healthcare Directives: Review and update your healthcare directives, including your living will and medical power of attorney, to ensure they reflect your current wishes.
Medi-Cal Planning: If you anticipate needing long-term care, consider strategies for qualifying for Medi-Cal.
5. Review and update beneficiary designations.
Your beneficiary designations on accounts like life insurance, retirement plans, and bank accounts take precedence over your will, so it’s crucial to keep them updated and incorporate them into the comprehensive estate plan developed in an office like ours.
Consistency Across Documents: Ensure that your beneficiary designations are consistent with the rest of your estate plan. Inconsistencies can lead to disputes or unintended consequences.
Contingent Beneficiaries: If you haven’t already, designate contingent beneficiaries who will receive assets if the primary beneficiary predeceases you.
6. Protect your digital assets.
In the digital age, protecting your online accounts and digital assets is a growing concern. Make 2025 the year you take control of your digital legacy:
Inventory Digital Assets: Create a comprehensive list of your digital assets, including email accounts, social media profiles, and online banking.
Access Information: Ensure that your executor or trustee has access to the necessary passwords and login information to manage your digital assets after your passing.
Digital Legacy Plans: Consider including instructions in your estate plan for how you want your digital assets managed or distributed.
7. Communicate your plans with family.
One of the best ways to prevent disputes and ensure your wishes are followed is to communicate your estate plan with your family.
Family Meeting: Consider holding a family meeting to discuss your estate plan and the reasons behind your decisions. This can help prevent misunderstandings and provide clarity for your loved ones.
Prepare Your Executors and Trustees: Make sure that the individuals you’ve chosen to serve as your executor or trustee are aware of their responsibilities and are prepared to carry them out.
Conclusion
Setting estate planning resolutions for 2025 is an important step in securing your financial future and protecting your loved ones. By updating your estate plan to reflect life changes, reassessing your financial situation, and communicating your wishes with your family, you can enter the new year with confidence.
If you need assistance with any aspect of your estate planning, contact us at obed@greenelawfirm.com or call us at 415- 905-0215 to schedule a consultation. Let’s work together to make 2025 a year of security and peace of mind for you and your family.
Statements In Compliance with California Rules of Professional Conduct: The materials in this article have been prepared by Attorney Jay Greene for educational purposes only and are not legal advice. This information does not create an attorney-client relationship. Individuals should consult with an estate planning and elder law attorney for up-to-date information for their individual plans.
Jay Greene, Attorney, CPA, is the founder of Greene Estate, Probate, & Elder Law Firm based in San Francisco, and is focused on helping LGBT individuals, couples, and families plan for their future, protect their assets, and preserve their wealth. For more information and to schedule an assessment, visit: https://assetprotectionbayarea.com/
Trust Essentials
Published on December 15, 2024
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