November 2024 Newsletter

NOVEMBER 2024 NEWSLETTER

Your Year-End Estate Planning Guide: A 7-Step Checklist

Have you reviewed your will? Reviewing your will as part of your year-end estate planning checkup is essential. As each year comes to a close, our life changes. These changes may impact your future financial plans and goals.

Have you met your financial gift limit? In 2024, the annual gift tax exclusion (or gift tax limit) is $18,000 per recipient without having to pay taxes on those gifts. Any gifts above that amount must be reported to the IRS on your 2024 tax return (form 709).

Have you reviewed your retirement and life insurance beneficiaries? Reviewing your retirement and life insurance beneficiaries is important as people may get married or divorced, death, and many more reasons.

Are your HCP and POA documents up-to-date and in a safe place? A health care proxy (HCP) is a document that names someone to express your desires and make health care decisions should you become incapacitated. A durable power of attorney (POA) for your finances names an individual who can make financial decisions should you become incapacitated.

Have you reviewed and revised (if necessary) an inventory of your assets? It’s essential to keep an up-to-date inventory list, for example, the value of your home, other real estate interests, cars, jewelry, and other physical assets. You should also consider reviewing your recent financial statements, including your bank, retirement and brokerage accounts, and any safety deposit boxes.

If you own any trusts, are they accurate and up-to-date? The creation of trusts helps to preserve wealth, alleviate some of the tax burden, avoid probate, and provide your family and beneficiaries with a less stressful way to access your estate after you are gone.

Have you talked with your family about changes to your estate plan? Establishing lines of communication regarding your estate plan and financial goals is often an overlooked strategy that can help preserve your wealth. According to NASDAQ, 70% of families lose their wealth by the 2nd generation and 90% by the third. These are overwhelming statistics driven in part by a lack of communication.

On a personal note, Lexi had a busy month. She got her first semester grades which will go to all the colleges, and she came through in the clutch with all A's. She finished her college essay and applied to all the schools she is interested in. She turned 18, had her last high school homecoming dance and her last volleyball game. To say I am so proud of her would be a drastic understatement. Nick is having a great year and absolutely loves Bentley. While majoring in finance, he has all A's. He said knowing that he'll be joining me one day in the family business, he wants to learn as much as possible about the investment world. The team is in 2nd place and getting better every week. He's doing great on the ice, and he is adjusting to the speed at the Division 1 level. He should get his opportunity soon and when he does, he'll be ready.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.