As the year draws to a close, now is the perfect time to take a closer look at your Florida estate plan and ensure everything is in order. Life changes, legal updates, and financial adjustments throughout the year can impact the effectiveness of your plan. By dedicating some time to reviewing and updating key documents, you can set yourself and your family up for success in the year ahead.
Whether you are reviewing your plan for the first time in a while or simply ensuring everything is aligned with your current goals, let us share this end-of-year checklist that can help you stay on track.
1. Review your last will and testament and trusts to ensure they reflect your current wishes. Changes in your family or financial situation, like the birth of a child, marriage, divorce, or the acquisition of new assets, may require updates to these documents. Check that the individuals you have named as beneficiaries, executors, or trustees are still the right choices.
2. Confirm your power of attorney and healthcare directives. These are critical components of your Florida estate plan. Make sure that the individuals you have designated to make financial or medical decisions on your behalf are still able and willing to serve. If your preferences or relationships have changed, now is the time to make updates.
3. Take advantage of tax-saving opportunities before the year ends. In 2024, you can gift up to $17,000 per recipient without incurring gift taxes. Consider using this annual exclusion to transfer wealth to loved ones or contribute to a 529 college savings plan. If your estate is close to the federal estate tax threshold, work with your Florida estate planning attorney to explore strategies to reduce your taxable estate.
4. Update beneficiary designations on accounts like life insurance policies, retirement accounts, and payable-on-death bank accounts. These designations override your last will and testament or trust agreement, so be sure they align with your overall Florida estate plan. If you have had significant life changes, updating these designations is essential.
5. Address digital assets in your Florida estate plan. Make a list of your digital assets, such as online accounts, social media profiles, and cryptocurrencies, and provide instructions for how they should be accessed or managed. In today’s digital age, these provisions are more important than ever.
6. Organize your financial records, including bank statements, investment account details, property deeds, and tax returns. This step ensures your personal representative or trustee can efficiently handle your estate if needed and helps you and your financial advisor stay on top of your financial health.
7. Discuss your plan with loved ones to avoid confusion or disputes in the future. While these conversations can be difficult, they are an important part of ensuring your wishes are understood and respected.
8. Schedule a year-end review with your Florida estate planning attorney to ensure your plan complies with current legal requirements. Laws governing estate planning can change, and your attorney can recommend strategies to optimize your plan and achieve your goals.
We know this article may raise more questions than it answers. By addressing these key items before the year ends, you can enter the new year with peace of mind, knowing your Florida estate plan is up to date and ready to protect your loved ones. If you have not reviewed your plan recently, now is the time to schedule your year-end review and ensure your estate is in good hands.
At Britton G. Swank, P.A., our mission is to guide you in the right direction to help you provide for yourself and your loved ones no matter what the future holds. We want to help you control the assets you have, leave them to people and causes you care about, when you want, in the way you want. We can help you take care of yourself and those you love in the event of disability due to illness, injury or old age. No matter what risks unfold, we can help give you the comfort of knowing you are prepared. We want you to feel good about your future and the future of your loved ones. We encourage you to contact us and schedule a meeting.