As we head into a new year, it’s time to start thinking about the goals and resolutions that will help set you up for success. While getting those steps in, building new habits, and crushing professional milestones are all important, there’s one thing that often gets overlooked but can have a profound impact on your future—estate planning. Whether you’re just starting your career or planning for retirement, putting your estate plan in place should top your list of 2025 goals. Here’s why.
- Ensure Your Kids are Cared For
Life is unpredictable, but you can take control of how your loved ones are cared for in the event something happens to you. Without an estate plan, decisions about your assets, healthcare, and even who will take care of your minor children could be left up to the courts. That’s right – a judge who does not know you, your children, or your family circumstances will decide who parents your child in the event a guardian is needed. Don’t let this happen! Talk to a lawyer about drafting a declaration of guardian and setting up financial provisions for your children as soon as possible. Trust us, you don’t want the state of Texas deciding who raises your kids! - Minimize Stress and Uncertainty
One of the most important advantages of estate planning is the peace of mind it offers. During what will already be an emotionally difficult time, clear instructions on how to manage your assets, pay off debts, and handle your funeral arrangements can provide much-needed relief.
- Take Advantage of Tax Savings
An often-overlooked aspect of estate planning is the potential for significant tax savings. Without a plan in place, your estate may be subject to high estate taxes, which can significantly reduce the assets passed on to your heirs. By strategically planning with an estate attorney, you can explore tools like gifting, trusts, and charitable donations that can reduce the tax burden on your estate. This ensures that more of your hard-earned wealth goes directly to the people and causes you care about rather than to the government.
- Plan for the Unexpected
Estate planning is not just about distributing assets when you pass away—it’s also about preparing for life’s unexpected turns. A comprehensive estate plan includes important documents like healthcare directives and powers of attorney. These allow you to appoint trusted individuals to make decisions on your behalf if you become incapacitated due to illness or injury. Without these directives, your family might face difficult decisions about your healthcare, potentially leading to disagreements about what’s best for you. - Keep Your Estate Plan Current
If you already have an estate plan, congratulations—you’re ahead of the game! But it’s important to remember that life changes, and so should your estate plan. Major life events such as marriage, divorce, the birth of a child, or the purchase of significant assets like a new home or property in another state all necessitate a review and update of your estate documents. Failing to update your estate plan could mean that it no longer accurately reflects your wishes or that outdated provisions cause unnecessary complications.
