​As the 2025 New Year approaches, many focus on resolutions for health, finances, and personal growth, but estate planning is often overlooked. With changes to estate and gift tax laws on the horizon, now is the time to review and update your estate plan. Estate planning is an ongoing process that should be regularly updated to reflect legal and life changes.

Why Updating an Estate Plan Matters

Life events—such as marriage, divorce, the birth of a child, a change in residency, or the death of a family member—require updates to your estate plan. Review it every 3 to 5 years, or sooner if significant changes occur. A periodic review also offers the opportunity to address philanthropic goals and legacy planning.

Five Tips for Updating an Estate Plan

1. Consider Revocable Trusts: Revocable trusts offer privacy, flexibility, and efficiency, keeping affairs confidential and avoiding probate. They also simplify trustee updates and avoid court delays.

2. Update Beneficiaries: Review designations on assets like retirement accounts, life insurance policies, and bank accounts to ensure they align with your wishes. This review also allows for the inclusion of charitable beneficiaries to achieve tax-efficient giving.

3. Appoint the Right Fiduciaries: Choose fiduciaries—executors, trustees, guardians, healthcare agents, and power-of-attorney agents—based on qualifications, not just personal relationships. Regular reviews ensure they remain willing and able to serve.

4. Leverage Annual Gift Tax Exclusions: For 2025, the annual gift tax exclusion rises to $19,000 per individual, allowing for tax-free gifts. Direct gifts for education or medical expenses can further reduce your taxable estate.

5. Plan for Changes in Estate Tax Exemptions: The federal estate and gift tax exemption will increase to $13.99 million in 2025 but will decrease to $6.2 million in 2026. Do your gift planning in 2025!

Proactive Planning for 2025 and Beyond
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Starting the New Year with an updated estate plan ensures preparedness for life changes and evolving tax laws. From selecting the right fiduciaries to leveraging gift tax exclusions, each step helps safeguard your wealth and ensures your wishes are followed, providing peace of mind for the future.