A New Year, A New Start: The Perfect Time to Freshen Your Estate Plan

The New Year represents fresh starts and new beginnings. It’s a time to set goals, create plans, and lay the groundwork for a more secure and fulfilling future. While many resolutions focus on fitness, career growth, or travel, there’s one critical area that often gets overlooked: estate planning.   If you’ve been putting off this important task, the new year is the perfect time to tackle it. Here’s why you should make estate planning a priority in 2024 and how to get started.

Why Estate Planning Matters More Than You Think

Estate planning isn’t just for the wealthy, or older individuals. It’s for anyone who wants to ensure their wishes are carried out, their loved ones are cared for, and their assets are protected. A solid estate plan provides peace of mind and removes uncertainty in times of grief or emergency. It can protect a spouse or minor children, and ensure that you have someone in your corner able to act for YOU,  if you have an accident, or become ill or incapacitated.

Life is unpredictable. An estate plan ensures your family is provided for financially and emotionally. This includes naming guardians for minor children, protecting assets, and minimizing family conflict by clearly outlining your wishes. Without an estate plan, decisions about your health, finances, and property may fall to the courts, professionals or other people you might not wish to be involved - not your loved ones.

What to Include in Your Estate Plan

A well-rounded estate plan is made up of several key components: a Last Will and Testament OR a  Living Trust which will distribute assets, health care advanced directives, and  a power of attorney for financial matters. 

Most people think of a “Last Will and Testament” as the main estate planning document. A will specifies how your assets will be distributed and names an executor to manage your estate. Making your wishes known about how your assets will be distributed is important, particularly if your wishes differ from the default distribution schemes of Florida intestate law. 

However, depending on the nature of your assets, a will does not alone avoid the probate process, a court proceeding that will validate the will, name your executor or “personal representative” of your estate, and distribute the assets to the heirs named in your will.  In many cases, with a will you must be diligent to ensure that your retirement accounts, insurance policies, and other assets have up-to-date beneficiaries or else assets may be frozen by banks when you pass away, until a probate is filed.

 A “Living Trust” is the alternative to a will, and is entirely private. No court process is necessary to administer the trust and distribute assets – including selling a house – when you pass. Proper planning can help your loved ones avoid the lengthy, expensive, and public probate process. A living trust keeps your estate out of probate and allows assets to pass to beneficiaries more efficiently. There are also many estate planning strategies can help reduce estate taxes and other costs, preserving more of your wealth for your heirs. 

In contrast, healthcare wishes are documented in several closely related forms. A “Living Will” outlines your preferences for medical treatment if you cannot communicate. A Healthcare Proxy or “Healthcare Surrogate” appointment in Florida names someone to make healthcare decisions on your behalf, and get your medical records in line with state and federal privacy laws.  If you have minor children, naming a guardian for their own healthcare or financial future is one of the most critical decisions you’ll make.

To allow someone you trust to manage your financial affairs if you’re unable to pay bills in an emergency or illness situation, a durable Financial Power of Attorney can give family members or chosen professional agents rights to help with banking and insurance matters. 

Take Charge of Your Life’s Transitions!

Whether it’s healthcare directives, charitable giving, or asset distribution, a comprehensive estate plan ensures your unique wishes are honored. An experienced estate planning attorney can guide you through the process, ensure your documents are legally sound, and help you minimize taxes and costs. They will help you list and evaluate the status of  all your assets: bank accounts, real estate, retirement accounts, insurance policies, and personal property. They will guide you on how to best ensure your assets are distributed quickly to your loved ones, who will care for your dependents, and who will make decisions for you if needed. 

If you already have a plan, freshening your documents is recommended for significant family and life changes – births, deaths, marriages, divorces, and financial shifts all  necessitate regular updates to your estate plan. Set a reminder to review it annually.

Make 2024 the Year of Preparedness and Peace of Mind

Starting the new year with an estate plan is one of the greatest gifts you can give yourself and your loved ones. It’s not just about securing your legacy; it’s about providing peace of mind, protecting your family, and ensuring your wishes are honored. Let this year be the year you stop procrastinating and start planning. If you’re ready to get started or need guidance on creating a tailored estate plan, reach out to The Tessier Law Firm, P.A. today!  Together, we can make 2025 the year you achieve financial security, clarity, and a fresh start.