With the season of goal setting and resolutions upon us, financial planning is top-of-mind for many. Though it’s always good to have an up-to-date estate plan, the start of the new year is the perfect time to revisit your financial and estate plans to ensure that your information is accurate and up-to-date.
If you’re curious about where to start, read on for a quick guide, and contact us for an in-depth consultation.
Year in Review: Revisiting Estate Planning
As life circumstances and priorities constantly evolve, it’s essential to periodically review necessary financial and estate planning documents.
With the start of the year, you’ll want to review your estate plan to ensure nothing has changed in the past year that requires a shift in your will and/or trusts. As you review, a few crucial items to consider are the distribution of assets, executors and trustees, beneficiaries, financial power of attorney, and the guardianship provisions (if you have minor children). Death, illness, marriage, births, and other major life events may deem an individual unfit to become a guardian or executor or require additional treatment in your documents.
By considering these factors, you can prepare your family and yourself for unforeseen circumstances, starting 2025 off on the right foot.
Planning Ahead: Annual Gifting
Though annual gifting may not be your first thought entering the new year, proactively planning your annual gifts during the first half of the year can help you avoid time constraints, giving you security and peace of mind in 2025.
Often, deadlines can creep up and impact annual gifting, especially with illiquid assets that require appraisal. Appraisals can take up to several months and may lead you to miss the deadline. By preparing early and appraising assets earlier in the year, you can ensure a smooth and timely process.
Furthermore, as you budget your annual gifts, be sure to take into account the new exemption levels that take effect in 2025. Now, each parent may gift each child up to $19,000 without gift tax implications, compared to last year’s $18,000. Lifetime gifting and estate tax exemptions have also increased from $13.61 million to $13.99 million in 2025.
Seeking Legal Guidance: Working with Cook Tillman
Anything can happen in a year, from marriage to divorce to death. Preparing financially for the unexpected is crucial to starting the new year off strong. As you head into 2025, be sure that your estate planning documents are accurate and up-to-date for your current life circumstances.
Whether you need to update your current estate plan or create one from scratch, Cook Tillman can help you navigate the process through a thorough and personalized approach. With over 50 years of combined experience, our team can help you handle the nuances of estate planning to suit your family dynamics.
Schedule a consultation today through our website or by phone at (615)-370 2444.
Before speaking with us, be sure to review all of your current documents and the value of your assets.