End-of-Year Estate Planning Checklist

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Safe Harbor Law Firm

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Posted on

Dec 27, 2024

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Florida - Southwest

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As the year draws to a close, it’s the perfect time to review your estate plan, and ensure it’s still aligned with your goals and the latest tax laws. Proactive steps now can help minimize tax liabilities, maximize gifting opportunities, and set the stage for a smooth transition for your assets. Here are a couple of essential estate planning actions to consider before the new year:

 

1. Review Your Estate Plan

 

Life changes quickly, and your estate plan should keep pace. Take time to review your will, trusts, and other documents to ensure they reflect your current wishes and family circumstances. This is especially important if you’ve experienced major changes this year, such as the birth of a child or grandchild, a marriage, a divorce, or the passing of a loved one. Confirm that your named executors, trustees, and agents under powers of attorney are still appropriate for their roles.

Three images - Happy mature husband and wife smiling, Estate planning sign on a wooden pier, generational family photo.

2. Optimize IRA Distributions

 

If you’re required to take minimum distributions (RMDs) from a retirement account like an IRA, be sure to do so before the end of the year to avoid penalties. Even if you’re not required, consider whether making strategic withdrawals now could lower your taxable income in future years. For those feeling charitable, a Qualified Charitable Distribution (QCD) from an IRA can satisfy RMD requirements while benefiting a cause close to your heart. Be sure to check with your estate planning attorney to ensure this is done in the proper manner and timeframe.

 

3. Take Advantage of Year-End Gifting

 

The annual gift tax exclusion allows you to gift up to $18,000 per recipient in 2024 without impacting your lifetime estate tax exemption. Making gifts before December 31st can reduce the size of your taxable estate while sharing your wealth with loved ones or supporting your favorite charities. Again, be sure to check with a qualified estate planning attorney prior to gifting, to see if other interests are affected or impacted by the gift. For example, even though gifting is allowed for estate tax purposes, it may negatively impact your – or your beneficiary’s – eligibility for benefits such as Medicaid.

 

4. Update Beneficiary Information

 

Beneficiary designations on retirement accounts, life insurance policies, and other financial instruments often take precedence over what’s written in your will or trust. Review these designations to ensure they reflect your current intentions. Similarly, verify that all contact information—addresses, phone numbers, and emails—for heirs and key advisors is up to date to avoid administrative headaches later.

Estate planning is not a “set it and forget it” process. Regular updates, especially at critical moments like year-end, ensure your plan is optimized to protect your legacy and minimize tax exposure. By taking these steps now, you can move into the new year with confidence, knowing your estate plan is working as hard as you do.

Curating Your Legacy:
Estate Planning for Collectors

For those who have spent years curating a collection of art, antiques, or rare items, the idea of passing it on requires more than a simple clause in a will. These collections often hold significant monetary value, but their true worth lies in the passion and personal history they represent.

Numismatic coins with magnifying glass

Thoughtful estate planning ensures that these treasures are preserved, distributed, or liquidated in ways that reflect the collector’s intentions while avoiding unnecessary complications for heirs.

 

During the Collector’s Life…

 

The first and perhaps most critical step in planning for a collection is determining its true value. Unlike traditional assets, collections often require appraisals by professionals who understand the nuances of the market. For example, the value of a rare painting or antique can fluctuate dramatically based on trends, provenance, and condition. Hiring a qualified appraiser ensures the collection’s worth is accurately assessed for tax purposes, insurance, and future planning.

 

Keeping valuations up to date is equally important, as markets evolve and the significance of individual items may grow over time. Plus, within your estate plan, if your goal is to give equally among your beneficiaries, you may need to make adjustments to your plan if collectibles vary significantly in value.

 

It’s also important to recognize that some collectibles may be counted against the collector for benefits programs such as Medicaid. While personal property is not typically considered a countable asset for Medicaid purposes, certain collectibles are worth substantial value and may be considered up-for-grabs to the nursing home. Ensure your collection is protected by considering an asset protection trust for your collectibles if possible.

 

After a Collector’s Death…

 

Deciding what happens to a collection after the owner’s lifetime is a personal choice. Some collectors wish to pass items down to specific heirs, while others prefer to donate pieces to museums or institutions that can ensure their public enjoyment. Clear documentation in a will or trust is crucial to minimize disputes among beneficiaries and to ensure that these wishes are honored. Donations may also help the donors qualify for tax benefits, depending on the value of the asset being donated, and where it is donated to.

 

Alternatively, if liquidation is the best path forward, having a strategy in place can make the process smoother for heirs. Professional guidance from appraisers, auction houses, or reputable dealers can maximize the value of the collection while relieving family members of the burden of navigating the complexities of niche markets.

Whether a collection represents an investment, a lifelong passion, or a legacy for future generations, estate planning provides a framework to protect and preserve it. By working with an estate planning attorney experienced in handling unique assets, collectors can ensure their treasures are cared for and their wishes are carried out seamlessly, leaving behind a legacy that speaks to their love and dedication.

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Local Services By This Author

Safe Harbor Law Firm

Power of Attorney 4500 Executive Drive, Naples, Florida, 34119

Pam Buff Baker, Esq., owner and founder of Safe Harbor Law Firm works closely with clients to meet their legal needs. In particular, Pam works in all areas of Estate Planning, Elder Law, Probate and Trust Administration. Pam graduated magna cum laude from Tulane University, having majored in chemical engineering. Since graduating from Tulane, Pam has worked in sales, marketing, and technical support for Eka Chemicals (part of Akzo Nobel), a company division that supplies water purification and treatment systems. Later, Pam moved to Naples, Florida. Since then, Pam graduated summa cum laude from Ave Maria School of Law, where she was Associate Editor of the Law Review and a scholarship winner. During her time at Ave Maria School of Law, Pam worked in the legal department of Arthrex and interned for several local law firms. Pam is a champion golfer, having been a varsity player at Tulane, inducted into the Hall of Fame. She was an All-American golfer, three-time conference champion, conference player of the year, and student athlete of the year. When she has free time, Pam likes to play golf and go to the beach and pool with her family. Originally from Chicago, Pam has lived year-round in Naples, Florida since 2005.

Safe Harbor Law Firm

Elder Law 4500 Executive Drive, Naples, Florida, 34119

At Safe Harbor Law Firm (formally known as Buff Law Firm PLLC), we focus on estate planning, elder law, and closely related practice areas. Our true focus, however, is helping families plan for and take control of their future. This can involve:Ensuring your assets will go to the people you want, when you want, in the manner you want after you pass awayPreparing for the possibility that you or your spouse will need expensive long-term careand helping you find ways to pay for itEnsuring that people you trust have the authority to make financial and medical decisions on your behalf in the event of incapacityProtecting your assets and those of your heirs against threats such as creditors, lawsuits, divorce, the high cost of long-term care, and moreGuiding your loved ones through the probate and/or trust administration processSafe Harbor Law Firm has helped families from all walks of life find solutions to challenges like these and many more. We welcome the opportunity to do the same for you. Ultimately, our goal is to help you enjoy the peace of mind that comes from having a plan in place for the future. We invite you to contact us for a personal meeting to discuss your particular needs and goals.EXPERT ATTORNEYSMeet the TeamPam Buff Baker, Esq.Attorney & FounderAbout Mrs. BakerPam Buff Baker, Esq., owner and founder of Safe Harbor Law Firm works closely with clients to meet their legal needs. In particular, Pam works in all areas of Estate Planning, Elder Law, Probate and Trust Administration. Pam was recognized by Naples Illustrated in 2021 and 2022 as a Top Lawyer in Trusts and Estates to include 2023. She is also a member of the nationwide organization, Lawyers with Purpose, an organization solely focused on helping seniors. Safe Harbor Law Firm serves clients at their offices in Naples and Bonita Springs.Pam graduated magna cum laude from Tulane University, having majored in chemical engineering. Since graduating from Tulane, Pam has worked in sales, marketing, and technical support for Eka Chemicals (part of Akzo Nobel), a company division that supplies water purification and treatment systems. Later, Pam moved to Naples, Florida. Since then, Pam graduated summa cum laude from Ave Maria School of Law, where she was Associate Editor of the Law Review and a full academic scholarship recipient. During her time at Ave Maria School of Law, Pam worked in the legal department of Arthrex and interned for several local law firms. Pam is a champion golfer, having been a varsity player at Tulane, inducted into the Hall of Fame. She was an All-American golfer, three-time conference champion, conference player of the year, and student athlete of the year. When she has free time, Pam likes to play golf and go to the beach and pool with her family, including her three children ages 4, 14, and 16. Originally from the Chicago area, Pam has lived year-round in Naples, Florida since 2005.Helen Mena, Esq.AttorneyThomas Tom LaTorre, Esq.AttorneyBrittany Cocchieri, Esq.AttorneyKatherine ReillyMarketing DirectorBryan D. WoulasDirector of OperationsAndy C. BakerFirm AdministratorKelly FinckProbate and Estate Planning Legal AssistantJessica MaristanyClient Services CoordinatorBreanna CanningFunding and Medicaid ParalegalRuth DavisClient Service CoordinatorJacqui CalmaAdministrative AssistantGabby AngExecutive AssistantMackenzie McTeviaClient Services Coordinator

Safe Harbor Law Firm

Legal Services 4500 Executive Drive, Naples, Florida, 34119

At Safe Harbor Law Firm (formally known as Buff Law Firm PLLC), we focus on estate planning, elder law, and closely related practice areas. Our true focus, however, is helping families plan for and take control of their future. This can involve:Ensuring your assets will go to the people you want, when you want, in the manner you want after you pass awayPreparing for the possibility that you or your spouse will need expensive long-term careand helping you find ways to pay for itEnsuring that people you trust have the authority to make financial and medical decisions on your behalf in the event of incapacityProtecting your assets and those of your heirs against threats such as creditors, lawsuits, divorce, the high cost of long-term care, and moreGuiding your loved ones through the probate and/or trust administration processSafe Harbor Law Firm has helped families from all walks of life find solutions to challenges like these and many more. We welcome the opportunity to do the same for you. Ultimately, our goal is to help you enjoy the peace of mind that comes from having a plan in place for the future. We invite you to contact us for a personal meeting to discuss your particular needs and goals.