Thanksgiving is a season of gratitude, family gatherings, and planning for the year ahead. As you enjoy time with loved ones and think about your blessings, it’s also a good opportunity to consider something equally important – your estate plan.
The end of the year is just around the corner, making it an ideal time to ensure your affairs are in order. Here’s why you should consider scheduling an estate plan review this Thanksgiving season.
Aligning Family Goals and Wishes
Thanksgiving often brings families together, sometimes from far and wide. What better time to discuss family goals, future plans, and wishes? By engaging in an open dialogue, you can find out if there have been any changes in your family members’ lives that may affect your estate plan.
Taking Stock of the Past Year
Over a year, a lot can change – births, deaths, marriages, divorces, and so on. Each of these life events can have implications for your estate plan. Take some time this Thanksgiving to reflect on what has changed in your life and how your estate plan should be updated to reflect those changes.
Preparing for Tax Season
The end of the year means that tax season is on the horizon. Certain aspects of your estate plan can have tax implications. A review at this time can provide you with strategies to minimize the tax burden on your estate or beneficiaries. That way, you’re not scrambling to make adjustments at the last minute.
Evaluating Financial Changes
Have you had significant financial changes this year, like a job loss, inheritance, or sale of property? Your estate plan needs to reflect your current financial situation. Thanksgiving is a good time to assess this, as you may have more free time to gather the necessary financial documents and meet with your estate planning attorney.
Taking Advantage of Year-End Gifting
The IRS allows for annual tax-free gifts up to a certain limit per recipient ($18,000 in 2024). With the new year approaching, it’s a good time to consider whether you want to make use of this annual exclusion for the current year. Reviewing your estate plan around Thanksgiving allows you to implement this strategy in time.
Checking Legal Updates
Laws can change. New estate tax laws or changes in Connecticut state law could affect your estate plan. Make it a point to talk to your estate planning attorney to ensure your plan is up-to-date with current legislation.
Confirming Executors and Trustees
People’s lives change, and the person you initially chose as your executor or trustee may no longer be the best fit. Use this time to confirm that your first choices are still willing and able to serve in these roles. If not, now is the time to update your documents.
Revisiting Medical Directives
Medical situations can change quickly. If your health has changed or if you’ve experienced the loss of a loved one, your feelings about medical decisions may have evolved. Thanksgiving is a good time to make sure your medical directives reflect your current wishes.
Setting New Year Resolutions
As you look forward to the new year, you probably have goals and resolutions in mind. Let one of those resolutions be to start the year with an estate plan that is current, robust, and aligned with your life as it is now.
We Are Here to Help!
We would be more than glad to review your existing estate plan as the new year approaches and make any changes that are necessary. And of course, if you are completely unprepared from an estate planning perspective, we can help you put your initial plan in place.
You can schedule a consultation at our Westport or Glastonbury, CT estate planning offices if you call us at 860-548-1000. And if you would rather reach out electronically, fill out our contact form and we will get back in touch with you promptly.
