New Resolutions For Your Estate Plan
The nice thing about being old is that you know better than to make resolutions that involve doing the impossible. Of course you are not going to give up junk food this year, just like you didn’t give up junk food in 1987, 1993, 2004, or any of the other years when you made that resolution. Of course you are not going to stop spending money on fun stuff; if the cessation of employment income did not break you of that habit, then something as trivial as a new calendar year certainly will not. At your age, the best resolutions involve estate planning. The most beautiful thing about estate planning is that it doesn’t require you to be perfect, and it doesn’t demand constant attention. If you make some small updates to your estate plan now, you can spend the whole year feeling proud of yourself that you achieved your resolution. For help becoming the only person in your social circle who has achieved a good resolution in recent memory, contact a Tampa estate planning lawyer.
Sign an Advance Directive, Even If You Don’t Care About Money
A common excuse for procrastination on your estate plan is that you do not have any money or that the most valuable gift you can give your family is the gift of not being materialistic. Even if you wholeheartedly believe this, you can admit that you don’t want a rift to form in your family because of disagreements over your end-of-life care. You can avoid this problem by signing an advance directive that expresses your wishes in the event of your severe illnesses and authorizes one of your family members, or someone else you trust, to express your consent to or refusal of medical treatment.
Set Up a Revocable Trust
A trust is a legal entity, similar to a business, that owns the property you transfer to it. Therefore, it does not become part of your estate during probate. With a revocable trust, you can transfer property to it gradually, and you can make as many updates as you choose to the trustees, the beneficiaries, or how much the beneficiaries should receive.
Make Sure That Your Will Is Legally Valid and That It Reflects Your Values
The permanence of a will makes it both reassuring and scary, but remember that it is always possible to rewrite your will, as long as you follow the legal procedures. If you do not have a will, write one this year, with the knowledge that you can change it if you change your mind. If you have one, review it and see if it still reflects your wishes.
Be Generous With Cash Gifts
In 2025, the annual gift tax exclusion is $19,000. This means that you can give cash gifts of up to this amount to as many recipients as you choose. Your only limits are your financial means and your generosity.
Contact David Toback About Updating Your Estate Plan in the New Year
A Central Florida estate planning lawyer can help you get started on your will, revocable trust, and other aspects of your estate plan. Contact David Toback in Tampa, Florida to set up a consultation.
Source:
irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025#:~:text=Annual%20exclusion%20for%20gifts%20increases,%2418%2C000%20for%20calendar%20year%202024.
