Prioritizing estate planning in 2025 is a good New Year’s resolution.
Did you set any New Year’s resolutions this year?
Resolutions are a popular tradition.
People often reflect on their previous year and their goals for the future when deciding what changes to make.
Most resolutions involve alterations to habits or routines like exercising more or eating healthier.
Those who make estate planning a New Year’s resolution are prioritizing a vital step in securing their future and the future of their loved ones.
Even though it is already the 3rd of February, there is no time like the present to take action.
According to a recent Coeur d’Alene/Post Falls Press article titled “Estate Planning in 2025: A New Year’s Resolution worth keeping,” comprehensive estate planning involves multiple elements.
What are they?
Making estate planning a New Year’s resolution can help you to have a happier and more secure New Year.
A last will provides directions for how your executor distributes assets through probate.
Even if you already have a last will, your New Year’s resolution should be to review your plan and how it is affected by life changes in the previous year.
Did you welcome a child through birth or adoption?
Did you or your adult child marry or divorce?
Did you move homes or lose a loved one?
Any of these changes could necessitate updates to your last will.
Although there are multiple types of trusts used for different estate planning goals, the general purpose of a revocable living trust is to avoid probate.
Assets can pass more privately and quickly to heirs than with a last will.
If you have acquired new assets, you may want to title them to your trust to ensure its terms govern them so they can bypass probate for distribution.
Power of attorney (POA) documents are essential for incapacity planning.
How so?
They are used to designate the individuals to serve as your agents if you cannot make decisions or take action yourself.
A General Durable Power of Attorney allows you to give authority to a trusted individual to handle your financials and assets if you become incapacitated.
You can limit the scope of authority to account for what you need.
For example, you can give someone the ability to pay your bills but not sell your assets.
With a Durable Power of Attorney for Health Care Decisions, your designated agent will be able to discuss your health concerns with your doctor and make medical decisions on your behalf when you cannot do so yourself.
When incapacitated, you cannot communicate your wishes regarding life-saving or sustaining care.
Advance Medical Directives, like a Health Care Treatment Directive or a Living Will, can document your desires for treatment.
You can share about whether you would like to be kept alive through respiration, artificial nutrition, or other methods.
Some of my clients have written an instructions letter to share their thoughts about these decisions, which can be very helpful, too.
Often loved ones experience extreme stress and emotions when tasked to make such decisions.
By including these documents in your estate planning New Year’s resolution, you can prevent your loved ones from making these troubling choices about your care without knowing your wishes.
Various assets pass to heirs through beneficiary designations directly on the account or contract.
This is common for most pension plans, retirement accounts, and insurance policies.
It is also possible for some of your investment or bank accounts to pass through these methods.
You should review these regularly and update them as needed.
Important things do not often get accomplished without a plan.
An effective way to make creating and reviewing your estate plan a priority is to set estate planning as a New Year’s resolution each year.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: Coeur d’Alene/Post Falls Press (Jan. 5, 2025) “Estate Planning in 2025: A New Year’s Resolution worth keeping”
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