The new year brings an opportunity to reevaluate and make necessary changes to personal goals and plans. One of the most important aspects of life that people often overlook is updating their will and estate plan. January is the perfect time to ensure your estate plan reflects any recent life changes and sets your legacy in order for the future. By tackling this important task early, you are taking proactive steps to protect your loved ones, minimize taxes, and ensure that your wishes are respected when it matters most.
Robert Friedman
Michael Ranzenhofer
Justin Friedman
John Dracup
As the year comes to a close and we look forward to new beginnings, it’s common for people to make resolutions and set personal goals. Many focus on health, financial growth, or personal development. However, one key area that is often neglected is estate planning. Whether it’s been a few years since you last reviewed your will or you’ve recently experienced significant life changes, now is the perfect time to update your estate plan.
January offers a fresh start—a chance to ensure that your estate plan accurately reflects your wishes, minimizes potential tax burdens for your heirs, and reduces the chances of complications in the future. Taking the time early in the year to update your will, trusts, and other estate planning documents will give you peace of mind, knowing that you’ve secured your legacy and protected your family from unnecessary stress.
Why Start With Estate Planning in January? 
Many people don’t realize that a comprehensive estate plan doesn’t just include a will; it encompasses a broader picture of your wishes regarding assets, healthcare, and guardianship of children. After the busy holiday season and a long year, January is a great time to sit down, reflect, and get organized. Updating your estate plan can often be a tedious process, so tackling it when things are quieter and before other obligations take over will prevent it from slipping through the cracks. Furthermore, starting in January allows you ample time to meet with a trusted attorney, review your current plans, and make any necessary changes to your documents.
Life Changes and Updates
Your estate plan should evolve along with you. Significant life events—such as the birth of a child, the death of a loved one, marriage, divorce, or even the acquisition of a new property—should trigger a review of your estate planning documents. For instance, a child’s birth may necessitate naming a guardian in the event of your passing. If you recently got married or divorced, you’ll want to update your will to reflect your new marital status, possibly changing the beneficiaries or even the executor of your estate.
In January, with the start of a new year, it is an ideal time to address any life events that may have occurred over the last 12 months. You might have experienced a marriage or a divorce. You may have had children, or maybe a loved one passed away. These life changes should prompt an update to your estate plan to ensure that it still accurately reflects your wishes.
Tax Changes and Opportunities
Estate planning is not just about protecting your loved ones; it’s also about ensuring that your estate is managed in the most tax-efficient way possible. Laws surrounding estate and inheritance taxes can change yearly, so it’s important to review your estate plan to take advantage of any new tax breaks or to ensure compliance with new regulations. For instance, you may qualify for new estate tax exemptions or deductions that didn’t apply to you in previous years.
When you update your estate plan in January, you have the chance to incorporate these new tax opportunities right from the start of the year. This gives you ample time to consult with an attorney or financial planner to develop strategies for reducing estate taxes, which will ultimately benefit your beneficiaries by leaving them more of your estate.
Minimizing Future Stress
While the emotional aspects of estate planning are undeniable, the financial and logistical considerations are just as important. If your estate plan is outdated or incomplete, it could lead to lengthy legal battles, unnecessary fees, and complicated probate proceedings. Updating your estate plan at the beginning of the year ensures that you minimize future stress for your family. It gives them clarity about your wishes and makes it easier for them to carry out your plans should something happen to you.
If your documents are up to date, there will be less confusion during a time of grief, which is often a source of tension and conflict in families. By taking action now, you’re giving your loved ones the gift of certainty and reducing the likelihood of disputes in the future.
What Documents Should You Review and Update?
Estate planning is a comprehensive process that involves more than just a will. It’s important to regularly update all of the documents that comprise your estate plan, including your will, healthcare proxies, powers of attorney, and trust documents.
Here’s a breakdown of the key documents you should review:
- Your Will
The cornerstone of any estate plan, your will outlines your wishes for the distribution of your assets. It also names an executor to manage your estate after your death. If you’ve experienced major life changes or acquired new assets over the last year, now is the time to ensure that your will reflects those updates. You’ll also want to revisit your beneficiary designations to make sure the right individuals are named, particularly if you’ve had changes in family dynamics, like the birth of a child or the death of a loved one. - Trusts
Trusts are useful tools for managing and distributing your assets in a more efficient manner. They can also help minimize estate taxes. If you have any revocable or irrevocable trusts, it’s essential to review the terms to ensure they align with your current goals. You may want to add or remove beneficiaries, change the trustee, or update provisions based on new laws or tax considerations. - Healthcare Directives and Power of Attorney
A healthcare directive (living will) and durable power of attorney for healthcare designate someone to make medical decisions on your behalf if you are unable to do so. This ensures that your healthcare wishes are carried out, even if you are incapacitated. Similarly, a financial power of attorney allows someone to make financial decisions on your behalf should you become incapable of managing your finances. It’s important to review these documents periodically and make any necessary updates, especially if your designated agents have changed. - Beneficiary Designations
Your will is not the only document that designates beneficiaries. Certain accounts, such as life insurance policies, retirement accounts, and bank accounts, may have their own beneficiary designations. Make sure that these designations are up to date, and double-check that they align with the wishes outlined in your will. - Other Essential Documents
Aside from the primary estate planning documents, you may also need to update your living will, which outlines your wishes regarding medical treatments if you are terminally ill or incapacitated. Additionally, review any documents related to charitable donations or legacy gifts you’ve planned to make.
The Benefits of Updating Your Estate Plan Early
Starting the year with an updated estate plan offers numerous benefits:
- Peace of Mind: Knowing that your documents are in order can help you relax and feel secure in the knowledge that your family will be cared for, and your wishes will be respected.
- Minimized Taxes: Early review of your estate plan allows you to capitalize on new tax advantages and exemptions, reducing the burden on your estate and beneficiaries.
- Avoid Legal Complications: Updating your plan early in the year reduces the risk of conflicts or legal issues that can arise if your documents are outdated or unclear.
- Clarity for Loved Ones: By ensuring that everything is clearly defined and up to date, your loved ones won’t be left to navigate a complicated or outdated estate plan during a difficult time.
Contact an Estate Planning Attorney to Start the Year Right
Updating your will and estate plan doesn’t have to be a stressful or overwhelming process. By taking action now, you can ensure that your estate is in good hands for the future. An experienced estate planning attorney can help guide you through the process, make recommendations, and ensure that your documents are legally sound.
As you make your new year’s resolutions, don’t forget to include an important resolution that will benefit you and your family for years to come—updating your will and estate plan.
At Friedman & Ranzenhofer, PC, we specialize in estate planning and can help you create or update your estate plan to suit your needs. Contact us today to schedule a consultation and start the year with peace of mind.
There’s no better time than January to update your will and estate plan. The start of the year brings a fresh slate, and ensuring that your estate planning documents are current will give you and your family peace of mind for the year ahead. Take action now to protect your loved ones, minimize tax burdens, and ensure that your wishes are honored when it matters most.
Reach out to the experienced estate planning team at Friedman & Ranzenhofer, PC today to schedule a consultation. We can guide you through the process of updating your will and estate plan, ensuring that your legacy is secure and your family is protected.