Seven Step Estate Planning Checklist for 2024

Estate planning ensures that your assets, loved ones, and final wishes are protected according to your desires. In 2024, changes in tax laws, estate laws, and financial strategies make creating a comprehensive plan more important than ever. Whether you’re starting from scratch or reviewing your existing documents, use this estate planning checklist to ensure you cover all the essential steps.

1. Take Inventory of Your Assets

Your estate plan should start with a clear picture of your current assets. These include your bank accounts, retirement funds, property, business interests, and valuable personal belongings. Be sure you also include life insurance policies, investment portfolios, and any other items that contribute to your net worth. A detailed inventory ensures that your estate plan addresses all your financial interests.

Action Items:

• Create a list of all bank accounts, property titles, and business ownership documents.
• Gather recent statements from any retirement or investment accounts.
• Include valuable items like jewelry, art, or collectibles in your inventory.

2. Draft or Update Your Will

A will is the cornerstone of any estate plan. It outlines who will inherit your assets and who will serve as the executor responsible for managing your estate after you pass. If you already have a will, review it to ensure it still reflects your current wishes and life circumstances. Changes in family dynamics, new children, or marriages often warrant updates to this crucial document.

Action Items:

• Draft a will if you don’t already have one.
• Update your will to reflect any changes in beneficiaries or assets.
• Designate an executor who is reliable and capable of managing your estate.

3. Establish a Trust

For many individuals, trusts offer more control over how and when assets are distributed to beneficiaries. They can also help avoid the probate process, saving time and reducing legal fees for your loved ones. Consider whether a revocable living trust or an irrevocable trust fits your needs.

Action Items:

• Decide whether a revocable or irrevocable trust is right for you.
• Name a trustee who will manage the trust according to your wishes.
• Fund the trust by transferring assets into it to make it legally effective.

4. Assign Power of Attorney and Healthcare Proxy

Assigning power of attorney allows someone you trust to manage your financial and legal affairs if you become unable to do so. A healthcare proxy grants someone the authority to make medical decisions on your behalf. Without these documents, decisions about your care and finances could be left to the court.

Action Items:

• Select a trusted person to act as your financial power of attorney.
• Assign a healthcare proxy to make medical decisions for you.
• Make sure both documents are signed, notarized, and shared with your designees.

5. Review Beneficiary Designations

Many assets, such as life insurance policies and retirement accounts, pass outside your will or trust through beneficiary designations. It’s important to regularly review these designations, especially after major life events like a divorce, remarriage, or the birth of a child, to ensure that your assets are distributed according to your wishes.

Action Items:

• Review the beneficiary designations on all retirement accounts and insurance policies.
• Update any outdated designations that no longer reflect your wishes.
• Make sure your estate planning documents align with your beneficiary designations.

6. Plan for Estate Taxes

Estate taxes can take a significant portion of your estate if you’re not prepared. While the federal estate tax exemption is high, it’s still important to consider how your estate will be taxed, especially if you own a large estate or live in a state with an estate tax. Work with an estate planning attorney to develop strategies that minimize tax liability, such as gifting or establishing certain types of trusts.

Action Items:

• Consult a tax advisor to understand potential estate tax liabilities.
• Consider gifting assets during your lifetime to reduce the taxable estate.
• Explore trusts and other strategies to minimize the tax burden on your heirs.

7. Keep Your Estate Plan Updated

Creating an estate plan isn’t a one-time task. As your life changes, your estate plan should evolve with it. Regularly review your estate planning documents—especially after major life events like marriages, divorces, the birth of a child, or a significant increase in assets. Keeping everything up-to-date ensures that your plan continues to reflect your current wishes.

Action Items:

• Set a reminder to review your estate plan every three to five years.
• Update your plan after any significant life changes.
• Inform your loved ones of your estate plan’s location and key details.

Final Thoughts on Your 2024 Estate Plan

Taking the time to address these steps can give you peace of mind, knowing that your assets and loved ones are protected. Estate planning is about more than passing on wealth—it’s about ensuring your wishes are respected, and your family is taken care of in the future.

For legal guidance, call Staubus and Randall at 214-691-3411 or contact us online. Our experienced Texas estate planning attorneys can help you create a comprehensive estate plan that addresses all your needs. Schedule a consultation today to get started.