It Is Time to Make Your Estate Planning List and Check It Twice
“He’s making a list. He’s checking it twice. He’s going to find out who’s naughty and nice . . . .”[1]
The estate planning process can sometimes be similar to Santa’s process. You decide who should receive your money and property (the nice people on your list) and who should not (the naughty ones).
Gathering with friends and family this holiday season can serve as an important reminder for you to ensure that the right people are included in your estate plan.
Reflecting on the Past, Acknowledging the Future
There is a great deal on your plate this time of year. Between making lists, shopping, decorating, cooking, hosting, and managing year-end work, there is often not enough time left to enjoy the spirit of the season.
However, the moment will come when everyone gathers together. With the holiday rush over, you can welcome the warmth of your loved ones and take a moment to reflect on family, friends, and your legacy. These small moments can get you thinking about the bigger picture as you close the book on 2024 and turn the page to 2025.
Do not let old acquaintances—or family members—be forgotten. Raise a glass to them with your estate plan.
Double-Checking Your Estate Planning List
Whether you have an existing estate plan or need to make one, a few basic plan features—the who, what, and when of estate planning—should help guide your decision-making.
Whom do you want as beneficiaries?
Santa is responsible for giving gifts to everyone in the world. Your task is not nearly as complex. However, choosing estate plan beneficiaries is not always easy.
Family members are often the most obvious beneficiaries, especially when you are married and have kids. In fact, depending on where you live, you may be unable to disinherit your spouse or minor children even if you want to, except in certain circumstances. However, outside of these exceptions, you are generally free to choose whomever you want as beneficiaries. They do not have to be descendants as defined in state inheritance laws (i.e., family members to whom the court defaults when somebody does not have an estate plan in place when they pass away).
Your beneficiaries need not be family, friends, or even people. Beneficiaries can be a charity, your alma mater, a local business, or some other organization. Your plan can also include a trust that benefits a person, an entity, or your beloved pet. Many estate plans are a mix of these beneficiary types.
Once you make your beneficiary list and check it twice—and that includes naming contingent or backup beneficiaries—we can advise you on tools such as a will, a trust, or lifetime gifts that you can use to ensure that your chosen beneficiaries receive their inheritance in the way you want.
What should your beneficiaries receive?
When deciding the types and amounts of your money and property each beneficiary should get, primary considerations often relate to what you own and each beneficiary’s specific needs. However, the “what” of estate planning can be just as difficult as the “who.” It is not always about who has been naughty and nice.
If you painstakingly even out how much everyone gets for Christmas down to the exact dollar amount, you might opt for an equal distribution of your money and property. Or you may recognize that your son who makes six figures has different needs from your struggling artist son, which suggests an equitable distribution.
Start by creating an inventory of everything you own. Some things, such as your car, house, and retirement account, are obvious big-ticket items. Other things, including heirlooms, sentimental items, and digital assets, can more easily be overlooked but are often just as important to your loved ones.
Identify potential family conflicts and how gifts might exacerbate them. Certain accounts or properties (e.g., financial accounts, a family vacation home, and life insurance) can be split among loved ones. Tangible personal property (dishes, photo albums, art, etc.) may not be divisible. However, some of these items can be sold and the money divided.
Keep in mind that, in some cases, splitting accounts or property to equalize inheritances could create more problems than it solves due to shared ownership issues. For example, leaving the family cottage to multiple children may result in fights over occupancy rights, maintenance and upkeep, and decisions about when to sell.
When should your beneficiaries receive their inheritance?
Gifts can be made during your lifetime or after you pass away. The timing of those gifts depends partly on the method they are made.
More people today are embracing a “giving while living” strategy. Making gifts while you are alive lets you see your loved ones enjoy their inheritance. In addition, this strategy can take advantage of available gift tax exclusions. However, in some cases, transferring the same accounts or property through an estate plan after death may offer a better tax strategy.
There are two main tools in estate planning for leaving assets to loved ones at death: a will and a living trust. To accomplish a speedier distribution, using a trust is usually ideal. Accounts and property owned by a trust are not subject to probate court oversight, while accounts and property gifted via a will must first go through the court-supervised probate process, which can delay distributions. Using beneficiary designation forms for accounts and policies that have them available (e.g., retirement accounts, life insurance, and bank accounts) can also avoid the probate process, so the funds are distributed in a timely fashion. However, these probate avoidance tools result in a lump-sum payout to your loved one, which may not align with your goals and wishes.
Trusts allow for more nuance in how accounts and property are distributed. For example, gifts can be staggered over time as a child matures and becomes more capable of handling an inheritance or when life milestones such as graduation or employment are met. A trustee can also be given full discretion over when to make gifts or distributions to the beneficiary.
An attorney can help you strike the right balance between living for the moment and delaying gifts until after death for tax and planning purposes, ultimately leaving more behind for your loved ones.
Give the Gift of an Estate Plan
An estate plan is a valuable gift you can give to both yourself and your loved ones.
Without a detailed up-to-date plan that identifies what you own, who your beneficiaries are, and how you want your accounts and property to be distributed at your death, your estate could end up as chaotic as a white elephant gift exchange, with loved ones arguing over who should get what and state law—not your final wishes—having the last word.
The holidays are fleeting. Your legacy should not be. When the holidays slow down and your normal workflow returns, reach out to our attorneys to discuss establishing a plan worthy of year-round celebration. Call us to schedule a time when we can put your list into action.
It Is Okay to Ask for Help
There are times, like the holiday season, that we think about and prepare for, for much of the year. However, when they arrive, we may still feel unprepared.
The holidays serve as a reminder of how quickly life happens. It can also feel this way when we get the news that family is counting on us—and not just to bring the rolls to this year’s holiday dinner.
Perhaps you found out that your mother’s health has deteriorated and she needs somebody to take care of her, or your father has passed and you have been named executor of his estate and are now in charge of winding up his affairs. You might have known this day was coming. However, now that it is here, you may be unsure what to do next and where to turn.
Caregiving and Estate Planning Duties You Might Be Asked to Perform
Simple acts of kindness can be a source of happiness for the giver and receiver. But things can be far less simple if you have been placed in a role, such as a caretaker or a legal representative, that requires you to put the needs of others before your own for an extended period of time—not just in a physical and emotional sense, but in a legal sense too.
About 37 million people in the United States provide unpaid elder care to a family member.[2] Many of these caretakers work full time and suffer work-related difficulties due to their dual roles but feel they have no choice about their caregiving responsibilities.[3]
As part of these responsibilities, family caregivers often receive some type of formal authority to make decisions for a loved one. For example, they may be appointed to manage a parent’s medical and financial affairs through powers of attorney or named as the successor trustee of a parent’s trust when the parent can no longer manage their own affairs.
- An agent or attorney-in-fact under a power of attorney has the legal authority to handle another person’s financial or medical matters, depending on which powers are granted under the power of attorney.
- A trustee manages a trust for the benefit of the trust’s beneficiaries.
- An executoror personal representative of an estate administers and winds up the deceased’s affairs according to their estate plan.
- A caregiver assists with the daily activities of an elderly or disabled person.
While attorneys-in-fact, trustees, and executors perform different tasks, they all have what are known as fiduciary duties. These duties are legal obligations that require them to act in another person’s best interests, such as the beneficiary of a trust or a loved one under their care.
Many family members who step into these roles and accept responsibility have no prior experience serving in this capacity and may be unsure of how to proceed, practically and legally, even if their background suggests they would be a good fit.
You may work as an emergency room nurse, but Mom’s dementia presents entirely different challenges (both medically and emotionally) from what you have been exposed to. Your brother may work in finance, but that does not mean he knows how to properly oversee a trust.
If you find yourself in such a position, how can you ensure that you are doing not only what is best for the family but also what is legally required of you? You are willing and able to help, but who will help you?
Where You Can Turn for Assistance
Many of us struggle to find the time for our own personal affairs. Finding extra time to serve as a caregiver or fiduciary, especially during busy periods like the holidays, can be overwhelming.
Working-age Americans put in an average of 45 hours per week of both paid and unpaid labor.[4] The exact number is based on gender and individual circumstances.[5]
Caregiving can take an average of 25 hours per week.[6] Managing or winding up a loved one’s affairs can be similarly time-consuming. Court-supervised probate can take months or even years to complete, and trustees can end up administering a trust for decades.
Finding the time is only half the battle. Assuming you can clear your schedule, you may have questions about navigating your newfound role as a healthcare agent, attorney-in-fact, executor, or trustee. Here are some professionals you can turn to for answers:
- An accountant can advise you on tax matters related to estate assets and tax returns.
- A financial advisor can provide guidance about investing and managing accounts owned by a trust or your loved one’s personal accounts.
- Ahome healthcare provider can assist with an older adult’s skilled and nonskilled care.
- An attorney can explain your fiduciary duties and how to perform certain tasks demanded of you.
We Are Here to Help Year-Round
It may be a family affair, but unfortunately, end-of-life matters do not always bring out the giving spirit in people. Sometimes, they can bring out the worst in families and add fuel to existing conflicts. Lawsuits between heirs are surprisingly common in these situations. If you do not receive the right legal advice, you could end up in a situation that could have been avoided with proper comprehensive planning.
Even if everyone is on the same page and you proceed with the best intentions, you would be remiss not to seek professional guidance. You might ultimately decide that you can proceed on your own. Just know you are not alone, and that help is available if needed. Schedule an appointment with us to learn more about the role you have been asked to fill.
New Year’s Eve Trivia and Fun Facts
Americans are known for their “work hard, play hard” mindset. On average, we work 1,789 hours per year.[7] However, even with our play-hard mentality, many of us do not stay up to see the ball drop on New Year’s Eve.[8] Less than one-third of Americans plan to either attend or host a New Year’s Eve party,[9] while more than half will spend the evening at home.[10]
Whether your plans involve a night on the couch with family or celebrating into the wee hours with fellow partygoers, here are some fun New Year’s trivia questions and factoids to stimulate the mind and ring in 2025.
New Year’s Trivia Questions and Answers
Question: Which country is the first to see the New Year?
Answer: The island nation of Kiribati is the first[11] due to its position on the International Date Line.
Question: What is the name of the traditional Scottish song sung at midnight on New Year’s Eve?
Answer: Auld Lang Syne (translation: “old long since” or “for old time’s sake”)
Question: What is the most common New Year’s resolution?
Answer: Health, exercise, or diet-related goals[12]
Question: Where is the Tournament of Roses Parade held?
Answer: Pasadena, California[13]
Bonus: When was it first held?
Answer: 1890
Question: When did the original “New Year’s Rockin’ Eve”[14] broadcast air?
Answer: 1972
Bonus: What network hosted the original show?
Answer: NBC (the show moved to ABC in 1974)
Bonus: Who hosted the first two editions?
Answer: Three Dog Night and George Carlin (Dick Clark took over as host when it moved to ABC)
Question: What year was the first Times Square New Year’s Eve ball drop?
Answer: 1907[15]
Question: What do Spaniards eat 12 of at midnight on New Year’s Eve for good luck in the coming year?
Answer: Grapes[16]
Question: What country is known for smashing plates on New Year’s to ward off evil spirits?
Answer: Denmark[17]
New Year’s Eve Fun Facts
- The Times Square Ball is 12 feet in diameter, weighs 11,875 pounds, and is covered in 2,688 Waterford crystals.[18]
- Occasionally, a “leap second” is added to the world’s official clocks on New Year’s Eve to keep the clocks in sync with Earth’s rotation.[19]
- The tradition of kissing at midnight on New Year’s Eve is rooted in ancient superstitions that doing so brings good luck in love and relationships in the year ahead.[20]
- The International Space Station crew celebrated the New Year in space for the first time in 2000.[21]
- Approximately 30 percent of Americans make New Year’s resolutions,[22] but fewer than 10 percent are successful at keeping them.[23]
- Twenty-three percent of people quit their resolution by the end of the first week; 43 percent quit by the end of January.[24]
- The practice of making New Year’s resolutions dates back over 4,000 years to the ancient Babylonians, who made promises to their gods at the start of the year in hopes of gaining favor.[25] They celebrated the new year not on January 1 but at the vernal equinox in mid-March.
Let’s Resolve to Review Your Estate Plan in 2025
As the year ends, many people vow to get their financial and legal affairs in order. Resolutions about finances and personal relationships—topics that feature prominently in an estate plan—are right up there in popularity with resolutions about health.
Making estate planning part of your New Year’s resolution is a powerful way to provide peace of mind and long-term security for you and your family. Unlike setting an early alarm to get in that predawn run before work, you can schedule a time to go over your estate plan whenever it is most convenient for your busy schedule.
The new year provides a timely opportunity to review your plan and ensure that life changes—such as marriages, divorces, or new children—are reflected in your legal documentation.
If you do not update your plan—or do not have one at all—you could be resolving to let the state decide important matters such as who should receive your money and property at death and who should be appointed to care for your minor children if both parents are unable to do so.
Resolutions are all about living with intention, and there is no better way to live intentionally than through establishing an estate plan. Make 2025 the year you start taking your plan more seriously: Get in touch with our office to schedule a meeting.
[1] Wikipedia, “Santa Claus Is Comin’ to Town,” last modified November 25, 2024 (UTC), https://en.wikipedia.org/wiki/Santa_Claus_Is_Comin%27_to_Town.
[2] Celebrating National Family Caregivers Month with BLS Data, U.S. Bureau of Labor Statistics (Nov., 30, 2023), https://www.bls.gov/blog/2023/celebrating-national-family-caregivers-month-with-bls-data.htm.
[3] Caregiver Statistics: Work and Caregiving, Family Caregiver Alliance, https://www.caregiver.org/resource/caregiver-statistics-work-and-caregiving (last visited Nov. 22, 2024).
[4] Chapter 6, Time in Work and Leisure, Patterns by Gender and Family Structure, Pew Rsch. Ctr. (Mar. 14, 2013), https://www.pewresearch.org/social-trends/2013/03/14/chapter-6-time-in-work-and-leisure-patterns-by-gender-and-family-structure.
[5] Id.
[6] Gary D. Luker, Taking Time to Recognize Caregivers, National Library of Medicine (Nov. 24, 2024), https://pmc.ncbi.nlm.nih.gov/articles/PMC10698583.
[7] How Many Hours Do You Work in a Year?, On the Clock, https://www.ontheclock.com/Blog/working-hours-in-a-year.aspx (last visited Nov. 22, 2024).
[8] Sarah Kliff, How late the world stays up on New Year’s, in one map, Vox (Dec. 30, 2014), https://www.vox.com/2014/12/30/7465329/new-years-bed-time.
[9] Danielle Commisso, Here’s How Americans Are Celebrating New Year’s Eve This Year, Civic Sci. (Dec. 27, 2023), https://civicscience.com/heres-how-americans-are-celebrating-new-years-eve-this-year.
[10] Id.
[11] Global countdown: Which countries welcome and bid adieu to New Year 2024 first and last, The Economic Times (Jan. 1, 2024), https://economictimes.indiatimes.com/news/international/us/global-countdown-which-countries-welcome-and-bid-adieu-to-new-year-2024-first-and-last/articleshow/106420553.cms.
[12] New Year’s resolutions: Who makes them and why, Pew Rsch. Ctr. (Jan. 29, 2024), https://www.pewresearch.org/short-reads/2024/01/29/new-years-resolutions-who-makes-them-and-why.
[13] Pasadena Tournament of Roses, https://tournamentofroses.com.
[14] Paul Grein, ABC to Air “Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest” Through Jan 1, 2029, Billboard (Nov. 20, 2023), https://www.billboard.com/culture/tv-film/dick-clarks-new-years-rockin-eve-with-ryan-seacrest-abc-renewed-1235499600.
[15] History of New Year’s Eve & the Times Square Ball, Times Square, https://www.timessquarenyc.org/nye/nye-history-times-square-ball (last visited Nov. 22, 2024).
[16] The 12 grapes, the passport to a year full of good things, Estudio Sampere (Dec. 12, 2023), https://sampere.com/blog/the-twelve-grapes.
[17] Unique New Year’s Traditions From Around the World, Life is Suite (Dec. 21, 2023), https://www.lifeissuite.com/unique-new-years-traditions-from-around-the-world.
[18] Times Square Ball Facts, Times Square, https://timessquareball.net/times-square-ball-facts (last visited Nov. 22, 2024).
[19] Mike Wall, “Leap Second” to Be Added on New Year’s Eve This Year, Space.com (Jul. 6, 2016), https://www.space.com/33361-leap-second-2016-atomic-clocks.html.
[20] Gia Yetikyel, The New Year’s Eve Kiss Tradition, Explained, Vogue (Dec. 7, 2023), https://www.vogue.com/article/new-years-kiss-tradition.
[21] John Uri, Space Station 20th: Celebrating the Holidays in Space, NASA (Dec. 23, 2020), https://www.nasa.gov/history/space-station-20th-celebrating-the-holidays-in-space.
[22] Shanay Gracia, New Year’s resolutions: Who makes them and why, Pew Rsch. Ctr. (Jan. 29, 2024), https://www.pewresearch.org/short-reads/2024/01/29/new-years-resolutions-who-makes-them-and-why.
[23] Richard Batts, Why Most New Year’s Resolutions Fail, The Ohio State Univ. (Feb. 2, 2023), https://fisher.osu.edu/blogs/leadreadtoday/why-most-new-years-resolutions-fail.
[24] Id.
[25] Joanne Dickson, Where did the new year’s resolution come from? Well, we’ve been making them for 4,000 years, The Conversation (Jan. 1, 2023), https://theconversation.com/where-did-the-new-years-resolution-come-from-well-weve-been-making-them-for-4-000-years-196661.