During the holidays, people put down their work and obligations and come together with their loved ones. It’s a time for celebration, relaxation, nourishment and reflection in Alabama and elsewhere. However, you may want to reflect and think about your estate plan, especially since you may see all your beneficiaries in one place.
Have difficult conversations
With everyone around, this may be an appropriate time to discuss your estate plans. While it may not be the most cheerful topic, having these difficult conversations can provide clarity and peace of mind for both parties. It also allows you to explain your decisions and any potential changes in plans that may affect them.
Review and update your estate plans
Estate planning is the best way to control and optimize the flow of your assets, but it’s not a one-time deal. As life goes on, circumstances change, and so should your plans. If someone in your family got married, divorced, had a child or started a new career or business, reviewing and updating your estate documents is important. Remember, your goals and intentions should remain consistent even if your plans may change.
Consider the tax implications
In Alabama, there is no state inheritance or estate tax, but there are federal estate taxes for estates over $12.92 million in 2023 or $25.84 million if married. If your net worth is above that threshold, consider strategies such as life gifting, charitable donations or trusts to minimize potential taxes.
Don’t forget about digital assets
In today’s world, digital assets hold a significant value. Things like online accounts, social media profiles and cryptocurrencies should be part of your estate plans if they are not already. Consider having a digital executor named in your will or trust to handle these assets after your passing.
While you are having fun with your loved ones, it is important to remember that estate planning equates to a blueprint for the legacy you desire to bestow. Sparing time to revisit your plans can help strengthen your familial bonds and give you peace of mind, knowing that you have secured your loved ones’ future to the best of your abilities.