Finish the Year Strong: 7 Estate Planning Moves to Make Before Year End
As the year comes to a close, many people focus on tying up financial loose ends—making charitable donations, reviewing budgets, or preparing for tax season. But there’s one more area that often gets overlooked in year-end planning: your estate plan.
Estate planning is about ensuring your family is protected, your wishes are honored, and your legacy is preserved. The end of the year provides a natural checkpoint to review your plan and make updates so you can step into the new year with peace of mind.
Here are key estate planning moves to consider before December 31st.
1. Review and Update Beneficiaries
Beneficiary designations on accounts like retirement plans, life insurance, and bank accounts often override instructions in a will. That means if your designations are outdated, your assets may go to someone you no longer intend.
Before the year ends, take time to review all beneficiary designations. Consider whether life changes—such as marriage, divorce, a new child, or the loss of a loved one—require updates. Even small adjustments now can prevent confusion or conflict later.
2. Revisit Your Will and Trusts
Your will and any trusts you’ve established should reflect your current circumstances and wishes. Ask yourself:
Do the people named as executors, trustees, or guardians still make sense?
Have there been new additions to the family who should be included?
Have your financial circumstances or goals shifted this year?
Trusts, in particular, may need to be revisited if you’ve acquired new property, started a business, or wish to change how assets will be managed or distributed. Updating these documents ensures your estate plan continues to serve your family well.
3. Make Charitable Gifts
The holiday season is often a time for generosity, and year-end charitable giving can also provide valuable tax benefits. Consider whether you want to:
Make direct donations to charities.
Establish or contribute to a donor-advised fund.
Include charitable gifts in your estate plan to leave a lasting legacy.
Charitable giving doesn’t just reduce your taxable income—it can also be a powerful way to reflect your values and priorities for future generations.
4. Take Advantage of Tax Planning Opportunities
Year-end is also the time to make strategic tax moves that affect your estate. Some considerations include:
Annual gift tax exclusion: For 2025, you can gift up to $19,000 per person ($36,000 for married couples) without triggering gift tax. Making these gifts before December 31st can reduce the size of your taxable estate while benefiting loved ones now.
IRA charitable rollovers: If you’re over age 70½, you may be able to make qualified charitable distributions directly from your IRA, which can count toward required minimum distributions while reducing taxable income.
Capital gains planning: Reviewing investments before year-end can help align your tax strategy with your estate planning goals.
A coordinated approach between your attorney, accountant, and financial advisor can maximize both immediate and long-term benefits.
5. Organize and Safeguard Your Documents
Even the most carefully crafted estate plan is only effective if your loved ones can access the documents when needed. Before the year ends, make sure your will, trust documents, powers of attorney, and advance health care directives are:
Stored in a safe, fireproof location.
Updated with your attorney’s office.
Communicated to trusted family members or fiduciaries so they know where to find them.
Taking these steps now prevents unnecessary stress during a crisis.
6. Don’t Forget Powers of Attorney and Health Care Directives
It’s easy to focus only on wills and trusts, but incapacity planning is just as important. Durable powers of attorney and advance health care directives empower trusted individuals to act on your behalf if you cannot. If these documents are out-of-date—or if the people you named are no longer the best choices—update them before the year closes.
7. Schedule a Family Conversation
The holidays often bring families together, making December an ideal time to talk openly about your wishes. Discussing your estate plan doesn’t have to be heavy—it can be framed as an act of care and clarity for your loved ones. Sharing your intentions now prevents confusion later and gives your family peace of mind.
Why Year-End Reviews Matter
Life moves quickly, and estate planning can easily slip down the to-do list. But an outdated plan can be just as problematic as having no plan at all. Year-end reviews create a consistent opportunity to keep everything current, aligned with your goals, and reflective of your family’s needs.
Think of it as part of your annual financial and personal check-up—just like reviewing your taxes or renewing insurance. By addressing estate planning now, you start the new year confident that your family’s future is secure.
Start the New Year with Peace of Mind
Estate planning is more than a set of legal documents—it’s a commitment to protecting your loved ones and your legacy. As the year winds down, take time to update, organize, and strengthen your plan.
At Woodinville Law, we can help you finish the year strong by reviewing existing estate plans, making necessary updates, and building new plans for lasting peace of mind. If you’re ready to ensure your plan is current, we invite you to connect with our team.
Let this holiday season be about more than wrapping up gifts—wrap up your estate planning, too, and give your family the gift of security in the new year.
The information provided in this blog is for general informational purposes only and is not intended as legal advice. Reading this blog does not create an attorney-client relationship. For advice regarding your specific legal situation, please consult a qualified attorney. The law is subject to change, and the accuracy of the information may vary over time.