Year-End Estate Planning Sprint: Essential Updates to Finalize Before December 31

As the year draws to a close, your focus might be on holiday plans, but as an experienced estate planning attorney serving the Sarasota area, I urge you to dedicate time to one critical, often-overlooked task: a final, year-end review of your estate plan.

Failing to make timely updates to your will, trust, and related documents can have serious, costly, and unintended consequences for your loved ones. The most effective estate plan is one that is current. Here are three crucial areas to review with your legal counsel before the clock strikes midnight on December 31st.

1. Review and Reconcile All Beneficiary Designations

A common and critical planning error is assuming your Will or Living Trust governs all of your assets. It does not. For most retirement accounts (like IRAs and 401(k)s) and life insurance policies, the distribution of funds is controlled entirely by the Beneficiary Designation Form on file with the financial institution.

These designations override your Will or Trust.

Consider this real-world scenario: You created a Will 15 years ago, leaving everything to your first spouse. Years later, you divorced and remarried, but you never updated the beneficiary on your large IRA. At your death, the IRA administrator is legally obligated to pay the funds to your ex-spouse, regardless of what your current Will states.

Key Action Steps:

• Gather All Documents: Pull statements for all qualified retirement plans, annuities, and life insurance policies.
• Check Primary and Contingent Beneficiaries: Ensure both the primary and, just as importantly, the contingent (backup) beneficiaries are correct and reflect your current wishes.
• Coordinate with Trusts: If a trust (such as a Living Trust) is intended to be the beneficiary, ensure the trust’s full, formal legal name is listed accurately. A small error can lead to a probate mess.

2. Audit Your Property Titles and Trust Funding

An estate plan is only effective if your assets are properly titled to align with your chosen strategy. This is particularly vital if you have a Revocable Living Trust.

A Living Trust is designed to allow your assets to bypass the costly, lengthy, and public process of probate in Florida. However, it only works if your assets are legally transferred, or funded, into the Trust’s name.

What Does Proper Funding Look Like?

The end of the year is the perfect time to audit your deed, bank statements, and investment accounts to ensure the title matches your plan. If you’ve acquired new property, opened a new bank account, or refinanced a home this year, a funding check is mandatory. Failure to fund a trust means those assets will likely still go through probate.

You can learn more about how a Living Trust can protect your assets by visiting our Living Trusts Services page.

3. Maximize Tax-Sensitive Transfers and Annual Gift Limits

For high-net-worth individuals, the final weeks of the year offer a critical window for reducing the size of your taxable estate through lifetime gifts.

The IRS allows you to give away a certain amount of money to as many people as you wish each year without incurring gift tax or using up your lifetime federal estate and gift tax exemption.

• 2025 Annual Gift Exclusion: For the 2025 tax year, the annual gift tax exclusion is $19,000 per recipient.
• Gift Splitting: A married couple can combine their exclusions to gift $38,000 to any individual in 2025 without triggering any reporting requirements.

If you transfer an amount up to the annual exclusion before December 31st, those assets and any future appreciation on them are immediately removed from your taxable estate, securing substantial long-term savings. The gift must be completed before midnight on December 31st to count for this year.

Strategic Gifting Considerations:

• Paying for Tuition or Medical Care: You can make unlimited, tax-free payments directly to an educational institution for tuition or to a medical provider for qualified medical expenses on behalf of any person. These payments do not count against the $19,000 annual exclusion.
• Transferring Appreciated Assets: Discuss with your attorney and financial advisor the strategic benefits of gifting assets that are likely to appreciate further in value.

An Experienced Perspective: Why Sarasota Residents Trust Scovill’s Law

My practice, Bart Scovill, PLC, provides comprehensive and meticulous estate planning counsel to individuals and families across the Sarasota area. As a solo practice, I offer a focused, personalized approach to your complex legal needs.

There’s still time; update your plan before the year ends.

Don’t let an outdated document jeopardize your legacy. 

Contact my office today to schedule a confidential year-end review and finalize your plans before December 31st.

Estate Planning Services

This blog post is for general informational purposes only and does not constitute legal advice. Reading this article or contacting our office does not create an attorney-client relationship. Every legal situation is unique; you should consult with a qualified attorney regarding your individual circumstances. Nothing in this article should be considered tax advice. Our office does not provide tax advice, and you should consult with a qualified tax professional before taking any action that may have tax consequences.