5 Essential Estate Planning Steps Every Family Should Take Before the Year Ends

The end of the year is a natural time for reflection and planning. As you wrap up your 2024 goals, don’t forget one crucial item: securing your family’s future with an estate plan. By taking care of these five key steps now, you’ll enter the new year with peace of mind knowing your loved ones are protected.

1. Create or Update Your Trust and Will
In California, a trust is the foundation of an estate plan for most people. A trust can offer additional protection and flexibility, especially for families with young children. It allows you to dictate how and when assets are distributed and can help avoid probate. Your will works alongside your trust and it ensures your assets are distributed as you wish and names a guardian for your children if something happens to you. Without a trust and will, the court decides - and that process may not align with your family’s needs.
💡End-of-Year Action Item: Talk to an attorney about whether a trust and will makes sense for your family’s situation.

2. Check Your Beneficiary Designations
Beneficiary designations on life insurance policies, retirement accounts, and other financial assets override your will and trust. These should match your estate planning goals to avoid unintended consequences.
💡End-of-Year Action Item: Confirm your beneficiaries are up-to-date, especially after major life events like a marriage, birth, or divorce.

3. Set Up Powers of Attorney
Life is unpredictable. A durable power of attorney ensures someone you trust can manage your finances, while an advanced health care directive allows a trusted person to make medical decisions on your behalf if needed.
💡End-of-Year Action Item: Discuss your preferences with your chosen representatives and ensure these documents are signed before January 1.

4. Nominate a Guardian for Minor Children

Who will take care of your kids if something happens to you? This is a question no parent wants to think about, but it’s one of the most important decisions you’ll make. By nominating a guardian in your estate plan, you ensure that your children will be cared for by someone you trust, rather than leaving it up to the courts to decide.
💡End-of-Year Action Item: Discuss your preferences with your chosen guardian and ensure a legal plan is in place before January 1.

5. Schedule a Review of Your Plan
Estate planning isn’t a one-and-done process. It should evolve as your family grows and your life changes. An annual review ensures your plan is always up to date.
💡End-of-Year Action Item: Schedule a review to catch any gaps or changes that need addressing before 2025.

Why Act Now?
Starting your estate plan - or making sure it’s current - before the year ends is a meaningful way to prioritize your family. Plus, completing this task now means you can begin the new year with peace of mind and focus on what truly matters.

At On Point Estate Law, Inc., we focus on creating customized estate plans that meet your family’s unique needs.
💡Call or schedule your consultation today and check "estate planning" off your 2024 to-do list before it’s too late!

Not Sure Where to Get Started with Estate Planning? Schedule Your Appointment HERE or by calling us at (619) 273-3329.