As tax season gets underway, many people take time to review their finances, gather documents, and ensure they’re meeting tax obligations. Since tax season already has you reviewing your finances, it’s also a great time to take a fresh look at your estate plan and make any necessary updates.
How Estate Planning and Tax Season Go Hand in Hand
Review Your Assets and Beneficiaries
As you gather tax documents, take note of your bank accounts, investments, and retirement funds. Are your beneficiary designations still correct? Have there been any major life changes—like marriage, divorce, or the birth of a child—that require updates?
Ensure Your Estate Plan Reflects Your Financial Situation
Changes in income, property ownership, or investments could impact your estate planning strategy. If your financial situation has shifted, it’s wise to review your plan to ensure it still aligns with your goals.
Check for Tax-Efficient Estate Planning Strategies
Estate tax laws can change, and planning strategies like gifting, charitable giving, or creating trusts may help minimize future tax burdens for your heirs. If you haven’t reviewed your plan in a while, now is a great time to explore ways to protect your wealth.
Verify Power of Attorney and Healthcare Directives
Tax season is a good reminder to ensure that someone you trust is authorized to handle financial matters if you become incapacitated. Is your financial power of attorney up to date? Do your healthcare documents reflect your current wishes?
Business Owners: Ensure Succession and Tax Planning Are in Place
If you own a business, tax season is a great time to evaluate your succession plan and confirm that your estate plan accounts for business continuity and potential tax implications.
A Simple Step Toward Peace of Mind
Estate planning and tax planning often go hand in hand, and reviewing your estate plan while you’re already focusing on financial matters can make the process smoother. If it’s been a while since you’ve updated your plan—or if you don’t have one in place yet—now is the time to take action.
Need guidance? Our experienced team at Roth Elder Law can help you ensure your plan is up to date and structured to minimize tax burdens while protecting your loved ones. To get started, call our office at 607-962-6162 or fill out our online contact form and we will be in touch to schedule a consultation.