The start of a new year is often associated with resolutions—health goals, financial planning, and long-term organization. One important item that frequently goes overlooked is estate planning. Yet January is one of the most practical times to review and update an estate plan to ensure it continues to reflect your wishes, family circumstances, and current law.
Estate planning is not a one-time task. Life changes, tax laws evolve, and documents drafted years ago may no longer accomplish what they were intended to do.
Why the New Year Is an Ideal Time
A new calendar year provides a natural opportunity to step back and take stock. Financial records are often updated, tax planning is top of mind, and families are setting priorities for the year ahead. Reviewing your estate plan at this time allows you to confirm that your planning aligns with both your personal goals and your broader financial picture.
Additionally, many estate planning strategies—such as annual gifting, trust funding, and beneficiary designations—are tied to calendar-year rules. Addressing these early in the year allows for thoughtful planning rather than rushed decisions later.
Life Changes That Should Trigger a Review
If any of the following occurred in the past year, a review is particularly important:
- Marriage, divorce, or remarriage
- Birth or adoption of a child or grandchild
- Death or incapacity of a family member, fiduciary, or beneficiary
- Significant changes in assets, business interests, or real estate holdings
- Relocation to a different state
- Changes in health or long-term care considerations
Even without a major life event, documents that are more than a few years old may no longer reflect current intentions or best practices.
Key Documents to Revisit
A New Year estate planning review typically includes:
- Wills and Revocable Trusts – Confirm dispositive provisions, fiduciary appointments, and distribution structures.
- Powers of Attorney – Ensure financial agents are appropriate and documents comply with current law.
- Health Care Documents – Review health care proxies, living wills, and HIPAA authorizations.
- Beneficiary Designations – Retirement accounts and life insurance often control asset distribution regardless of what a will says.
- Trust Funding and Asset Titling – Confirm assets are properly titled to align with the plan.
Small inconsistencies can lead to unintended outcomes, delays, or unnecessary administrative costs.
Tax Law and Planning Opportunities
Estate and gift tax rules continue to evolve, and thresholds are scheduled to change in the coming years. A New Year review allows individuals and families to evaluate whether existing plans remain tax-efficient and whether proactive steps—such as lifetime gifting or trust planning—should be considered.
Even for those not subject to federal estate tax, state-level considerations, income tax planning, and asset protection concerns may warrant updates.
Peace of Mind Going Forward
An updated estate plan provides clarity not only for you, but also for the people you have chosen to act on your behalf. It reduces uncertainty, minimizes the risk of disputes, and ensures that your intentions are clearly documented.
Starting the year with a current, well-structured estate plan is one of the most effective ways to protect your family and your legacy.
Conclusion
If your estate plan has not been reviewed recently—or if you are unsure whether it still reflects your goals—the New Year is an excellent time to take that step. Thoughtful planning today can prevent significant challenges tomorrow. Contact Legacy Counsellors, P.C. at 413-527-0517 or info@legacycounsellors.com to schedule a consultation.