As the year comes to a close, it’s essential to take time to reflect on finances, taxes, and long-term planning. A year-end review of your estate plan is a great way to make sure your documents align with your goals. Whether you experienced major life changes or want to ensure your family is protected, reviewing your documents annually is one of the smartest legal steps you can take.
Below is a helpful Year-End Estate Planning Checklist. You can also see what makes up a fully comprehensive estate plan by reading Our Client-Friendly Guide to Estate Planning.
1. Review and Update Your Will or Revocable Trust
Your will is the foundation of your estate plan. Even if no major events occurred this year, an annual review helps you ensure:
- Your beneficiaries are still accurate
- Your executor is still the right person [Read more about being an executor here]
- Your guardianship designations reflect your current wishes
- Your assets are properly accounted for
- Your distribution plan still matches your intentions
Why Review Annually?
Life changes quickly. At year’s end, we tend to reflect on everything that has happened this year. An annual review enables you to promptly address necessary updates, thereby possibly avoiding disputes, confusion, or unintended distributions later. Common reasons to revise your will include:
- Marriage or divorce
- Birth or adoption of children or grandchildren
- Change in financial circumstances
- Death of a named beneficiary or executor
- Relocation to or from New Jersey
- Acquisition or sale of major assets
- Acquisition of vacation or investment real estate
2. Confirm Your Power of Attorney Documents
A Durable Financial Power of Attorney ensures your chosen agents can act on your behalf if you become unable. Review:
- Are your agents still appropriate?
- Do you need successor agents?
- Have your preferences changed?
These documents evolve as relationships and circumstances change.
3. Revisit Your Living Will / Advance Healthcare Directive
Make sure your end-of-life and medical wishes are clear and reflect your current values. NJ residents should also confirm compliance with state-specific requirements. [You can read more about Advance Directives here.]
4. Review Your Trusts
If you have an irrevocable trust or a special needs trust, year-end is a good time to:
- Confirm trustees and successors
- Review asset funding (are new accounts titled correctly?)
- Ensure the trust still aligns with your financial and family situation
Properly funding your trust is crucial. An empty trust cannot protect your assets.
5. Update Beneficiary Designations
Many assets pass outside of your will based on beneficiary forms, including:
- Life insurance
- Retirement accounts (401k, IRA)
- Bank accounts
- Investment accounts
- Annuities
Ensure all designations are current and coordinated with your will to avoid conflicts.
6. Review Life Insurance Coverage
Consider whether your current policies still meet your financial and family needs. Life changes may necessitate an increase in coverage or updating beneficiaries.
7. Organize and Secure Your Estate Planning Documents
Make sure your executor or trusted family members know:
- Where your documents are stored
- How to access digital assets [Learn More About Digital Assets Here]
- Who your advisors are (attorney, CPA, financial advisor)
This prevents delays and confusion when your estate plan needs to be used.
8. Evaluate Your Assets & Debts
Update your personal balance sheet:
- Property
- Investments
- Business interests
- Digital assets
- Loans or liabilities
This helps ensure your estate plan accurately reflects your net worth and goals.
9. Plan for Tax Efficiency
New Jersey residents should be aware of:
- NJ inheritance tax
- Federal estate tax thresholds
- Annual gifting opportunities
Speaking with an attorney or tax professional can reveal strategies to minimize tax burdens.
10. Schedule Your Annual Consultation with an Estate Planning Attorney
An estate plan is not a “set it and forget it” document. Conducting a year-end review, especially updating your will, protects your family, prevents mistakes, and ensures your wishes are carried out exactly as intended.
Even if everything appears in order, a professional review ensures compliance with current NJ laws and catches issues you may not see.
If you are ready to sit with an attorney, Contact LSS Law.
10 Frequently Asked Questions (FAQs)
1. How often should I update my will in New Jersey?
Typically, every 3-5 years, or whenever you experience a major life change.
2. What happens if I don’t update my will?
Your will may no longer accurately reflect your wishes, leading to disputes or unintended distributions.
3. Do I need a lawyer to update my will in NJ?
While not legally required, a lawyer ensures accuracy, compliance, and proper execution. Further, it can prevent costly legal battles between your beneficiaries after your death.
4. Should I update beneficiary designations during a year-end review?
If they do not align with your wishes, yes. Beneficiary designations often override your will, so accuracy is crucial.
5. Does moving within New Jersey affect my will?
Typically, no, but moving out of state should warrant a legal review.
6. What if my executor no longer wants the role?
You should update your will to name a new executor or successor.
7. Are handwritten changes acceptable?
Handwritten edits may be invalid. Formal revisions (codicils or a new document) are recommended.
8. Should digital assets be included in my estate plan?
Yes. Passwords, social media, and online accounts should be documented and addressed.
9. Does New Jersey have an estate tax?
New Jersey taxes its residents under its estate tax law (It’s still on the books, just currently taxed at 0%), but it still has an inheritance tax. Speaking with an experienced estate planning attorney will help navigate tax implications.
10. How do trusts fit into year-end planning?
Trusts may need updates to trustees, beneficiaries, or funding to remain effective.
