Why the first of the year is the best time to Create Your Estate Plan
As the calendar turns to a new year, many of us take stock of our lives and set fresh goals. We think about health, finances, and relationships, but one crucial area that often gets overlooked is estate planning. If you’ve been putting off creating or updating your estate plan, there’s no better time to tackle this essential task than the start of the year. Here’s why:
1. A Fresh Start Brings Focus
January symbolizes new beginnings. It’s a time when people are motivated to organize their lives, making it an ideal moment to address your long-term plans. Creating an estate plan ensures that your assets, loved ones, and legacy are protected, giving you peace of mind as you move forward with other resolutions.
2. Tax Planning Benefits
The start of the year offers a unique opportunity to align your estate planning with tax considerations. You can review your financial situation from the previous year and consult with professionals to implement strategies that minimize taxes on your estate. Whether it’s leveraging annual gift tax exclusions or establishing trusts, early planning ensures you’re ahead of the game.
3. Incorporating Major Life Changes
The new year is a good time to reflect on recent life events that may impact your estate plan. Have you welcomed a new child or grandchild? Experienced a marriage or divorce? Bought a home or other significant assets? These milestones require updates to your will, trust, or beneficiary designations to ensure your wishes are accurately represented.
4. Taking Advantage of Professional Availability
Many professionals, including attorneys, financial advisors, and accountants, experience a seasonal lull at the beginning of the year. This can mean quicker appointments, more personalized attention, and better coordination among your advisors as you create or revise your estate plan.
5. Setting an Example
Starting the year by prioritizing your estate plan can inspire others in your family to do the same. It’s an opportunity to have conversations about financial responsibility, healthcare directives, and legacy planning with your loved ones. This proactive approach can lead to greater peace of mind for your entire family.
6. Avoiding the Last-Minute Rush
Too often, individuals delay estate planning until a health crisis or other urgent matter arises. By acting at the beginning of the year, you can thoughtfully and thoroughly address your estate plan without the stress and pressure of looming deadlines or emergencies.
What to Include in Your Estate Plan
If you’re ready to get started, here are some key elements to consider:
Will: Specifies how your assets will be distributed and names guardians for minor children.
Trusts: Helps manage assets and may offer tax advantages or protect assets from probate.
Healthcare Directives: Documents your medical preferences and appoints someone to make decisions on your behalf if you’re unable to do so.
Power of Attorney: Assigns someone to handle your financial or legal matters if you’re incapacitated.
Beneficiary Designations: Ensures accounts like retirement plans and life insurance are directed to the correct recipients.
Take Action Today
The new year is brimming with potential, and there’s no better way to start it than by securing your future. As an experienced attorney in Oklahoma, I’m here to help you navigate the estate planning process and tailor a plan that fits your unique needs. Let’s make 2025 the year you take control of your legacy.
Contact my office today to schedule a consultation. Together, we can ensure that you and your loved ones are protected for years to come.
