With COVID-19 continuing to create an unpredictable future, it’s important to consider some estate planning factors before the year’s end. By thinking ahead now and knowing what to look for, you can futureproof your estate plan and further your goals for years to come. You may also be able to take advantage of certain tax exemptions if you act quickly.
Amy L. Phillips, PLLC can help you explore your unique options to create or revise your estate plan before year-end. But to get you started, we’ve listed three of the most important estate planning factors you should consider before the end of the year.
It is never too early to inform your family members and heirs how you want your estate handled after your passing. Why not try it now, when everyone is together (even if only virtually) for the holidays? Sit down with your family members and heirs and explain the details of your estate plan. Giving them a “roadmap” in the event of your passing or illness can save both them and you time and costs in the future. You can also discuss where they can find passwords, documents, and other important details in case of emergency.
The end of the year is a great time to schedule an appointment with your lawyer to review and revise your estate plan. Taking care of this before year- end will allow you to move into 2021 with peace of mind and preparedness. When speaking with your attorney, make sure to review and update all your plans and documents. These might include:
- Policies, such as life insurance policies
- Retirement account information
- Healthcare documents, so your family knows what will happen in the event of your incapacitation or death
- Financial power of attorney, so your family knows how you want your finances handled in the event of your incapacitation or death
- Other details your lawyer mentions At Amy L. Phillips, PLLC, we are happy to help you walk through your estate
plan and draft up new documents if needed.
The financial picture for many families looks different today than when they first created their estate plan. Year-end is the perfect time to speak with your accountant or lawyer to work out your current financial status and find out how changes could affect your estate plan. Some of the things you might consider in checking up on your current status include:
- Any new debts or loans
- Changes in income
- Changes to credit score or reports
- Significant upcoming expenses, such as college tuition or funeral costs
With this information at hand, you can effectively plan your asset management for the coming years. You might also consider speaking with your lawyer to update your estate plan, if you feel changes are needed. This is especially true in terms of how much money you want allocated to your heirs when you pass away.