As the year draws to a close, it’s the perfect time to review your estate plan and ensure it aligns with your goals and reflects the latest tax laws. Proactive steps now can help minimize tax liabilities, maximize gifting opportunities, and set the stage for a smooth transition of your assets. At The Lansky Law Firm, we are here to guide you through these essential year-end estate planning tasks.
1. Review Your Estate Plan
Life changes quickly, and your estate plan should keep up. Take time to review your will, trusts, and other documents to ensure they reflect your current wishes and family circumstances. This is especially important if you’ve experienced significant life changes this year, such as:
The birth of a child or grandchild
A marriage or divorce
The passing of a loved one
Additionally, confirm that your named executors, trustees, and agents under powers of attorney are still appropriate for their roles and able to fulfill their responsibilities.
2. Optimize IRA Distributions
If you’re required to take minimum distributions (RMDs) from a retirement account like an IRA, be sure to do so before the end of the year to avoid penalties.
Even if you’re not required, consider whether making strategic withdrawals now could lower your taxable income in future years. For those feeling charitable, a Qualified Charitable Distribution (QCD) from an IRA can satisfy RMD requirements while benefiting a cause close to your heart. Consult with your estate planning attorney to ensure these actions are completed correctly and on time.
3. Take Advantage of Year-End Gifting
The annual gift tax exclusion allows you to gift up to $18,000 per recipient in 2024 without affecting your lifetime estate tax exemption. Making gifts before December 31st can reduce the size of your taxable estate while sharing your wealth with loved ones or supporting your favorite charities.
However, gifting may impact benefits eligibility for you or your beneficiaries, such as Medicaid. Work with an experienced attorney at The Lansky Law Firm to navigate these complexities and ensure your gifting strategy aligns with your overall estate plan.
4. Update Beneficiary Information
Beneficiary designations on retirement accounts, life insurance policies, and other financial instruments often take precedence over what’s written in your will or trust. Review these designations to ensure they reflect your current intentions.
Additionally, verify that all contact information—addresses, phone numbers, and emails—for heirs and key advisors is accurate. Keeping these details up to date avoids administrative headaches and ensures a smoother process for your loved ones.
Estate planning is not a “set it and forget it” process. Regular updates—especially at critical moments like year-end—ensure your plan is optimized to protect your legacy and minimize tax exposure. By taking these steps now, you can move into the new year with confidence, knowing your estate plan is working as hard as you do.
For personalized assistance with your end-of-year estate planning, contact The Lansky Law Firm at (901) 767-7006 or visit www.lanskylawfirm.com. Let us help you secure your legacy and prepare for the future.
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