As the holiday season approaches, it’s a natural time to reflect on the year that's passed and look ahead to the future. Amidst the hustle and bustle, it’s also a perfect time to take a quiet moment for a task that offers immense peace of mind: reviewing your estate plan. It’s a powerful way to ensure your wishes are still accurately represented and that the people you care about are protected, no matter what comes next.
Estate planning isn’t a one-time event, but an ongoing process. Your life in Ohio changes, your family changes, and the laws change. A quick year-end review can save your loved ones significant stress and potential complications down the road.
Here’s a checklist to help you get started:
1. Review Your Beneficiaries and Fiduciaries
Your estate plan is only as effective as the people you name to carry it out. Take a look at your will, trust, and all other important documents—such as life insurance policies and retirement accounts. Are the beneficiaries still the people you want to receive your assets? Have there been any births, deaths, or divorces in the family that might require an update? Similarly, are the people you've named as your executor, trustee, or agent under a power of attorney still the best choices? Their ability to serve, their relationship with your family, and their own life circumstances may have changed.
2. Check Your Financial Documents and Assets
Take a moment to inventory your assets. Did you open a new bank account or investment account this year? Did you buy or sell a property in Ohio? Make sure these new assets are properly titled and integrated into your estate plan. Also, review your financial power of attorney to confirm that it grants your agent the authority to manage all of your financial matters if you become unable to do so yourself. For many Ohio families, a well-drafted power of attorney is one of the most important documents you can have.
3. Update Your Healthcare Directives
Healthcare directives, like a Living Will or a Healthcare Power of Attorney, are crucial for ensuring your medical wishes are honored. As we head into a new year, it’s a good time to ask yourself: Do the individuals named in your documents still represent your medical preferences? Have your own feelings about end-of-life care changed? It's a conversation that's often difficult, but a meaningful one to have for your own peace of mind and your family's.
4. Consider the Federal Tax Law Changes
While Ohio does not have a state estate or inheritance tax, federal laws are always evolving. It's a good idea to stay aware of potential changes. For instance, the federal estate tax exemption, which is currently quite high, is scheduled to sunset at the end of 2025. This may not affect most Ohio residents, but for some, this could be a significant reason to re-evaluate their plan and potentially utilize gifting strategies before the change takes effect. A qualified estate planning attorney can help you navigate these complex federal regulations and ensure your plan remains effective.
Taking these steps isn't about dwelling on the future; it's about being prepared. It's an act of care and love for your family, ensuring that your legacy is exactly what you intend it to be.
If you’re feeling overwhelmed by this checklist or you’ve identified areas that need attention, you don’t have to do it alone. The experienced and compassionate team at Lovett & House is dedicated to helping Ohio families create and maintain comprehensive estate plans. We invite you to schedule a consultation with us today to review your plan and start the new year with confidence and peace of mind.
Call us at (937) 909-0770 now.