Your “Get Smart” Plan for 2025

This originally aired on the Catholic Faith Network’s show CFN Live: https://youtu.be/Gy2voM7N9Ms

Get Smart

Even Maxwell Smart of secret agent fame knew it was all about CONTROL. You want to have control over your life. You want to have control over what happens as you get on in years, face a health issue, etc.

We need to reframe our thoughts about estate planning. It is not only morbid thoughts of dying. Estate planning should be as much planning for life: retirement, illness, disability, young children, college, etc.

Interestingly, the word is that 43% of Gen Z’ers want to retire before age 65. That means they need estate planning. Estate planning means retirement, insurance, and other planning.

If you want to retire and have the means to live comfortably, then planning today is essential. Estate planning is more than how you leave your assets and to whom when you pass away.

So, Get Smart and get on the estate planning bandwagon now.

How many steps are in the “Get Smart” plan?

To make sure we “Get Smart” – Vincent J. Russo, Esq. has only five steps in the plan.

Step 1: Update Your Estate Planning Documents

The first step is to update your Estate Planning Documents such as your Will, Revocable Living Trust and Advance Directives. Life changes fast, and so should your estate planning documents.

If it’s been a few years since you last reviewed your Will or Revocable Living Trust, take some time to ensure it reflects your current wishes. Have you recently married, welcomed a child, or experienced a divorce? Perhaps a key beneficiary or executor has passed away. These changes must be addressed in your estate plan to ensure everything is up to date. Even if no major life events have occurred, periodic reviews are essential to avoid surprise gaps.

Some studies suggest 67% of Americans don’t have a will or estate plan. That’s a bad move. I am sure you want to control who gets your assets and not have the State dictate that decision. And most state intestacy laws (the law that says who gets your stuff if you don’t write a will) were written when the Cleaver family was the typical American family.

You also want to review and update your Advance Directives: Durable Power of Attorney for financial decision making and Health Care Directives for health care decision making.

Step 2: Review Beneficiary Designations

Your Will or Trust are not the only documents that dictate how assets are distributed. Bank accounts, retirement plans, and life insurance policies often bypass your will and go directly to the beneficiaries listed. Take a moment to review these designations and confirm they align with your wishes.

It might surprise you how often this crucial step gets overlooked, leaving unintended heirs to benefit. Keeping beneficiary designations current ensures your assets go to the right people.

Step 3: Plan for Taxes

Too many people forget to consider the tax implications of their estate plan. Income taxes should be considered and minimized.

Federal estate tax laws and depending on where you live State estate tax laws can have a significant impact on what your heirs ultimately receive.

Resolutions in this area could include exploring strategies to minimize income and estate taxes, such as gifting during your lifetime or setting up a trust. Discussing these possibilities with a trusted professional can help you protect more of your wealth for future generations.

Step 4: Organize Important Documents

Estate planning goes beyond drafting a few key documents. An important part of the process is ensuring that all your essential paperwork is well-organized and easily accessible.

Create a central file or digital archive that includes your will, trust documents, insurance policies, financial account information, property deeds, and even passwords for online accounts.

Share its location (physical and virtual such as passwords) with someone you trust. This small step makes it much easier for your loved ones to handle your affairs when the time comes.

Step 5: Consult an Estate Planning Attorney

While DIY solutions may seem appealing, estate planning is a complex process with lasting consequences. An experienced estate planning attorney can ensure your plan is tailored to your specific needs, complies with current laws, and anticipates any potential issues. They can help you address scenarios you may not have considered, such as incapacity or disputes among heirs.

Comprehensive estate planning is not a one-size-fits-all approach, and professional guidance can make all the difference.

Is there a standard estate plan?

We’re all unique. There is no such thing as a standard estate plan. Consider what special issues, concerns, or points your plan might benefit from addressing. Jot those down on your list to address in the coming year.

Make it Happen!

Writing it down helps make it happen. Commit to spending at least a few hours, say every other weekend, (or whatever works for you) to start addressing the points in your plan. Set some milestones for getting your list accomplished, for example “By February 15 we’ll have hired an attorney to draft new documents,” “By March 10 we’ll have a new detailed balance sheet,” etc.

Reality is estate planning, though vitally important, cannot compete with almost anything else on your to do list. If you don’t plan and try to move forward in digestible increments, you’ll be in the same spot at the end of 2025 as you are now. That is not progress. Even baby steps over time add up to real progress. Commit and move forward.

Start the Year Off Right

A well-thought-out estate plan is one of the greatest gifts you can give to yourself and your family. By following these resolutions, you’re taking proactive steps to secure your legacy while easing future burdens on your loved ones.

Make this the year you take control of your estate planning—your future self and family will thank you! Who doesn’t want to Get Smart!

We hope you found this article helpful. Contact our office today at 1 (800) 680-1717 and schedule an appointment to discuss what makes sense for you and your loved ones.