By Jay Greene–
As the year draws to a close, it’s essential to take a moment to review and update your estate plan. This year-end checklist will help you cover the key areas that may need attention before 2025 arrives.
1. Review Your Will and Trust
Your will and any trusts are the cornerstones of your estate plan. It’s important to review these documents annually to ensure they still reflect your wishes. Consider the following:
• Life Changes: Have there been any significant changes in your life this year, such as marriage, divorce, the birth of a child, or the death of a beneficiary? If so, you may need to update your will or trust to reflect these changes.
• Asset Updates: If you’ve acquired or sold property, investments, or other significant assets, your estate plan should be updated to include or remove these items. In the Bay Area, where real estate and investment transactions are common, this is especially important.
• Beneficiary Designations: Ensure that the beneficiaries listed in your will or trust are still correct and reflect your current intentions.
2. Update Your Power of Attorney and Healthcare Directives
Power of attorney (POA) and healthcare directives are critical components of your estate plan that dictate who will make decisions on your behalf if you become incapacitated. Review these documents to ensure they are up to date.
• Agent Selection: Is the person you’ve appointed as your agent under your POA or healthcare directive still the best choice? Consider if their circumstances have changed or if another person might now be better suited for this role.
• Scope of Authority: Review the powers granted to your agent and make sure they align with your current wishes.
3. Reassess Your Real Estate Holdings
In the Bay Area, your real estate holdings are likely one of the most significant parts of your estate. Consider the following:
• Title and Ownership: Ensure that all real estate titles are correctly aligned with your estate plan, especially if you’ve purchased or sold property this year. Verify that ownership is structured to avoid probate, if possible.
• Proposition 19 Considerations: Proposition 19, which affects property tax reassessments on inherited properties, is a key factor in California estate planning. Review how this law impacts your plan and whether any adjustments are needed to minimize tax liability for your children.
4. Review Retirement Accounts and Life Insurance Policies
Retirement accounts and life insurance policies often make up a substantial portion of your estate. As the year ends, it’s a good time to review these accounts.
• Beneficiary Designations: Confirm that the beneficiaries on your retirement accounts and life insurance policies are up to date and reflect your current intentions. Ensure that these designations align with your overall estate plan.
• Account Contributions: If you haven’t maxed out contributions to your retirement accounts, consider doing so before the year ends. This not only benefits your financial future but also impacts the assets included in your estate.
5. Tax Planning Considerations
Tax laws are constantly changing, meaning that tax planning is essential. Before the year ends:
• Gifting: Consider making tax-exempt gifts to family members or charities. The annual gift tax exclusion allows you to give a certain amount to each person without it being subject to federal gift tax.
• Charitable Contributions: If you’re considering charitable donations, doing so before the end of the year can provide tax benefits while supporting causes you care about.
• Estate Tax Planning: Review your estate plan in light of both federal and state estate taxes. California doesn’t have a state estate tax, but the federal estate tax exemption amount may be relevant depending on the size of your estate.
6. Digital Assets
In today’s digital age, your online accounts and digital assets are an important part of your estate.
• Access and Control: Ensure that your estate plan includes provisions for how your digital assets, such as social media accounts, online banking, and email, should be managed after your passing. Designate a trusted person to handle these accounts.
• Password Management: Update your list of digital passwords and make sure they are accessible to your designated agent or trustee. Consider using a password manager to securely store this information.
Conclusion
As you prepare to welcome 2025, taking the time to review and update your estate plan can provide peace of mind, allowing you to know that your affairs are in order. For residents of the San Francisco Bay Area, where property values are high and estate planning needs can be complex, this year-end checklist ensures that your plan reflects your current situation and safeguards your legacy.
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 secure your future and protect your loved ones.
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/
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