As the end of the year approaches, I thought it would be an excellent time to provide a quick list of tips related to year-end estate planning.
Tip #1 REVIEW & UPDATE
Review and update your documents. First, confirm that your will and any trusts accurately reflect your current wishes. Second, check and update beneficiary designations on accounts, such as life insurance and retirement plans. I want to take this opportunity to let you know I provide a complimentary review of estate plan documents for my clients every three years. But it is a good idea to check them over annually on your own.
Tip #2 TAX BENEFITS
Think about utilizing the annual gift tax exclusion (currently $17,000 per person). And consider charitable giving, which might offer some tax benefits.
Tip #3 EXEMPTIONS
I am not a tax advisor, but I suggest you discuss topics such as estate tax exemption and lifetime gifting with your financial advisor, which might reduce your taxable estate.
Tip #4 IMPORTANT LEGAL DOCUMENTS
Review (or create) advance directives and power of attorney documents. Confirm your healthcare directives, like a living will or healthcare power of attorney, reflect your current wishes. And confirm your designated power of attorney is still appropriate.
Tip #5 GET ORGANIZED
If, during the year, you have had to remove essential documents such as deeds, policies, and the like, they are all back in their files. Consider sharing the location of those files with trusted individuals.
Tip #6 TALK IT OVER WITH THE KIDS
Often, families gather around the holidays. You might want to take this opportunity while children or grandchildren are in town to share information about your estate plan with them. This can go a long way in avoiding misunderstandings or surprises down the road.
Every estate plan is unique; no cookie-cutter approach can ensure all of your wishes are considered and legally addressed. Spending a little time now can save all kinds of issues, time, and even money. I hope these tips help. Please do not hesitate to reach out if you need to update your estate plan or create one. This is the perfect time of year to do so. Call me at 513-399-7526 or visit my website, www.davidlefton.com, for more information.