As the year comes to an end, it is always advisable to take stock of your affairs. When was the last time you reviewed your estate and financial plans? The following is a quick breakdown of some of the items you should review, some of which can be accomplished before the end of the year and others that may be more of a “New Year’s Resolution.”

Estate Planning

Have there been changes in your life such as a birth, death, marriage, or divorce since you last revisited your estate plan? You may have beneficiaries in your existing plan for whom you would like to make a larger gift. Alternatively, you may have beneficiaries for whom a smaller gift is in order (perhaps they are not a large part of your life anymore or they have moved into a nursing home and would not benefit from your intended gift.)

Are the people you have chosen to handle your affairs (executor of your will, trustee of your trust, agent under a power of attorney, or health care decision maker) still appropriate? Consider whether that person has moved away or still has the time, capacity, or ability to handle the responsibilities.

If you have already established a trust, did you address ownership and beneficiary designations? There are two main types of ownership for trust assets. One is through direct titling which means the trust itself is the owner and the other is through pay-on-death or transfer-on-death designations. These designations mean that you own it during your lifetime, but the trust owns it upon your death. Upon funding a trust with assets, consider who you want to inherit from the trust in the event of your passing or some other designated event. It is important to note that you can name multiple people or entities as beneficiaries.

Have you organized your estate planning documents and gathered them in a place where your family knows to go to retrieve them in the event of an emergency or death? Once your documents are signed, you should place the originals (or copies, if you have deposited the originals with your attorney) in a binder so everything is kept in one place. Once organized, make sure everyone knows where the binder is in case something happens to you unexpectedly.

Current Financial Matters

• Any distributions you are required to take from your retirement plan have been completed. Failure to take a Required Minimum Distribution from your IRA (or 401(k) or 403(b) plan) can lead to a 25% penalty.
• If you are looking to make charitable gifts, consider having them come directly from your traditional IRA. Such a “Qualified Charitable Distribution” is a non-taxable way to get money out of your IRA. What also helps is that you get the tax benefit of the charitable gift even if you do not itemize your deductions on your tax return. Make sure you discuss your situation with your tax preparer before doing so, however, to ensure you are able to do so.
• If you want to make gifts to individuals, do so before the end of the year, and make use of your $17,000 gift tax exclusion per gift recipient.

Taking the time to review your estate and financial situation can help ensure your plans are aligned with your financial goals. If you would like further information on your estate plan or need guidance in creating one, learn more about our Estate Planning and Probate group.