Year-End Estate Planning: Your Guide to 2025
Now that 2024 is over and a new year has begun, it’s the perfect time to take a look at your current estate plan to ensure everything is in order. The end of the year is an ideal time to prioritize your estate planning. In this article, the Law Office of Angela N. Manz will discuss what you should focus on this new year and why it’s important.
Review your current estate plan
A good estate plan reflects your current circumstances. It’s always a good idea to review your estate plan after a major change in your life. These include changes to your family dynamics, the acquisition of new assets, or shifts in your financial goals. These are all circumstances that may require updates.
- Family changes – Marriage, divorce, birth, or a death in the family are all good reasons to revisit your estate plan. Such events may require updates to your beneficiaries.
- Asset Acquisitions – If you recently purchased property, invested in a business, or acquired significant assets, you should ensure these new holdings are accounted for in your estate plan.
- Health changes – If you or a loved one has been diagnosed with a long-term illness, you should review your healthcare directives and powers of attorney.
Taking advantage of tax strategies
The end of the year is an important time to check on tax-saving opportunities within your estate plan. These include options such as:
- Annual gift tax exclusion – In 2024, you can give up to $17,000 per person without triggering federal gift tax.
- Charitable donations – You can reduce taxable income and support causes you care about by making charitable donations prior to December 31.
- Funding trusts – For those with trusts, you should ensure it is properly funded with the assets you want to include.
Prepare for new year regulations
Estate planning laws and regulations often change at the start of the new year. For example, there will be significant changes to federal tax laws coming in 2026. These could affect tax exemptions and tax rates. Working with an attorney at the end of the year can help you adjust your estate plan proactively.
Organize and update key estate planning documents
The new year is the perfect time to gather and review key components of your estate plan to ensure they are accurate and up to date. This includes:
- Last will and testament – You’ll want to confirm that your executor, beneficiaries, and asset distribution still conform to your needs.
- Trust documents – You’ll want to ensure all your trusts reflect your current goals and beneficiaries.
- Powers of attorney – Make sure your designated agents are still able to fulfill their roles.
- Healthcare directives – Also known as your living will, you’ll want to update advance directives to include any new medical preferences or contact changes for healthcare proxies.
Talk to a Virginia Beach Estate Planning Attorney Today
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who want to create or update their estate plans. Call our Virginia Beach estate planning lawyers today to schedule a consultation, and we can begin discussing your next steps right away.
