Kickstart 2024: Your Guide to Creating and Updating an Estate Plan

As we step into 2024, it's the perfect time to either review your existing estate plan or start the journey of creating one. Keeping your estate plan updated annually ensures that it always reflects your current wishes. It's also a great time to discuss your plans with family, friends, or anyone involved in your estate to ensure everything progresses smoothly when needed.

Stay Ahead of New Laws

Each year brings new tax laws at both federal and state levels. While most won’t affect your estate plan, it’s wise to check in with your estate planning attorney to be sure (TIP: Our Client Care Program members get exclusive updates on changes in the law! Learn more about our membership HERE). If you have assets in different states, be mindful of varying laws that might impact your estate.

Remember, the federal gift tax exemption changes annually. This could influence any regular gifts or contributions you make. Starting January 1, 2024, the federal gift and estate tax exemption amount is 13.61 million per person. This increased exemption amount means that individuals can transfer up to $13.61 million tax-free during their lives or at death, and married couples can transfer up to $27.22 million.

For those who established an estate plan last year, make sure your revocable trust has been properly funded! This means titling all your assets like real estate, bank accounts, and stocks in your trust. Any new assets acquired should also be properly titled and included in your trust or will. Haven’t gotten around to it and need some help? Our office can help you fund your trust for a flat fee. Book a Funding Strategy Session HERE.

Making Changes: The Right Way

Regularly revisiting your estate plan is crucial, as it ensures that your final wishes align with any changes in laws, life circumstances, and asset profiles. Each year brings potential shifts in estate and tax laws that could significantly impact your estate planning strategies. Similarly, life events such as marriages, divorces, births, and deaths can alter your intentions for asset distribution. Your asset portfolio itself might evolve as well. A house sold; a bank account opened or closed. An annual review helps to keep your estate plan current.

Updating your trust or will isn’t as simple as adding a handwritten note, however. Trust amendments need to be formally appended, clearly stating any changes, removals, or additions. For wills, a codicil is necessary. This formal addition must meet state requirements, including signatures and possibly notarization.

Starting Your Estate Plan

If you don’t have an estate plan, there’s no need to panic. Now is a great opportunity to create one! At the Law Office of Laura Cowan, our process is as easy as 1-2-3! The first step is to book a Peace of Mind Planning Session. If you decide to move forward, we’ll have a Design Meeting where we’ll roll up our sleeves and design your estate plan. After a review of the final documents, you’ll come to our office for a Signing Ceremony. We’ll provide the witnesses and notary. Champagne optional! Book your Peace of Mind Planning Session HERE. Mention this blog and we’ll waive the $350 session fee.