Estate Planning Resolutions for 2025

The New Year – 2025 – is here! Maybe you’ve made your New Year’s resolutions to get more exercise, eat more vegetables, and cut back on the hours you spend on your computer. But what about making a New Year’s resolution to review your estate plan?

Your estate plan is the most important way you can protect your family, and when created properly offers many benefits. First, it provides you with peace of mind, knowing exactly who your assets will be distributed to and in the manner in which you choose rather than being left in the hands of the government. Second, it provides for the future of your loved ones. It also helps you prepare for your own long-term healthcare needs through the establishment of proxies and directives. Many people use estate plans to make certain decisions about their medical care and personal affairs in advance, in case they become incapacitated, which includes addressing end-of-life care issues.

Finally, tax considerations are a key part of estate planning. A solid plan can help you avoid having your assets slashed by estate and other taxes, reducing the share that goes to your loved ones when you pass away. 

As hard as it may be to believe, most New Yorkers die without even a will in place. In this case, the State of New York’s intestacy laws dictate the distribution of your assets. Failure to have a will also sets the stakes for family disputes over their rights to your property. 

Your Will

A will, formally called a “last will and testament,” is the key legal document that sets forth how your assets should be distributed when you die. In 2025, you should carefully review the distribution of your assets to ensure that your plan still aligns with your wishes. You should also make sure that your executor, the person who is legally obliged to administer your estate, is still the person you want to serve in that role.

Probate refers to the process of distributing your estate after you’ve died. Your estate will go through the probate process whether you die with or without a will, but having a will ensures your executor honors your wishes. Going through probate court without a will is more time-consuming and expensive, with the money coming out of your estate first.

Your Trusts

A trust is a legal document that authorizes a trustee to hold property for you. In this case, you are known as the “grantor.” The purpose of a trust is to allow you to place anything of value – money, property, other physical assets, etc. – to be used in the future. These trust vehicles are also used to hold property when beneficiaries are minor children who are not yet fit to handle their full inheritance. Property is also distributed faster in a trust because you avoid a lengthy probate court process, so it’s sometimes preferred for that reason. There are many kinds of trusts that accomplish different goals, and their creation can be complex.

If you have a special needs family member, a trust is often used to plan for their future even if you’re no longer around.  A special needs trust is like any other trust where a trustee holds assets for the benefit of a beneficiary. What makes this type of trust different, however, is that it benefits the family member while maintaining their needs-based government benefits. 

Even if you’re not wealthy, trusts are important because they allow your property to be distributed in a quick and easy manner. If you don’t have a trust, talk to a Long Island estate planning attorney about creating one for you in 2025.

Powers of Attorney

A power of attorney refers to the authority you give someone else to make legal, financial, or medical decisions on your behalf. The person to whom you grant power of attorney is called your “agent.” This person will act for you when you are unable to act on your own behalf. If you become unable to manage your own legal or financial affairs and you have not designated an agent to act on your behalf, a court may appoint one for you. The start of 2025 is a good time to review whom you have named as an agent for each of the following powers of attorney that you may have created: 

• Health Care Proxy – A health care proxy is similar to a power of attorney, except it is only for health care decisions. The proxy appoints someone who will make those decisions for you in the event that you are not able to make the decisions yourself.
• Living Will – A living will is used to make end-of-life decisions about health care in the event that you become incapacitated. Although it can be difficult to have to think about these kinds of situations, planning ahead will guide your loved ones and ensure that your wishes are carried out avoiding any uncertainty among your family members or medical care providers.

Tax Planning Documents

Taxes can take an alarming percentage of what you leave to your beneficiaries, but you can limit what taxes your estate pays in a few ways. Make 2025 the year you get on top of your tax planning documents with the help of a Long Island estate planning attorney.

Contact Davidow, Davidow, Siegel & Stern

Staying on top of your estate planning can be daunting, but it’s easier with the help of the attorneys at Davidow, Davidow, Siegel & Stern. We’re leaders in our field and are always up-to-date on current laws and regulations. From probate and estate administration to advising on Medicaid eligibility to Elder Law long-term planning issues, we are here to help and guide you. Make 2025 the year that you review your estate plan with us, and have confidence going into the future that you and your loved ones are protected. Contact us today.