Why February Is the Right Time to Review Your Estate Plan in Buffalo, New York

As we begin a new year, it’s an excellent time to consider reviewing your estate plan in Buffalo, New York. February, with its calm after the holiday rush, offers a unique opportunity to focus on organizing your affairs. For many people, the beginning of the year represents a fresh start, making it the perfect moment to ensure that your estate plan aligns with your current goals and circumstances. At Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., we understand how vital it is to keep your legal and financial matters up to date. Whether it’s reviewing your will, making updates to your trust, or ensuring your health care directives reflect your wishes, now is the time to make sure everything is in order.

Estate planning is more than just preparing for the future—it’s about securing peace of mind today, knowing that your loved ones will be protected in the event of an unexpected emergency. Below, we explore why February is the best time to revisit your estate plan and what to consider during this review.

Review Your Financial Situation After the New Year

After the hustle and bustle of the holidays, February offers a quieter period to reflect on your financial situation. Estate planning isn’t just about dividing assets; it’s about making sure your wealth is distributed efficiently and with as little complication as possible. By reviewing your estate plan, you can take stock of any new assets or changes to your financial picture that may require attention.

• Assess new assets or investments: Perhaps you have acquired new properties, investments, or financial products. Now is the time to ensure they are accounted for in your plan.
• Debts and liabilities: If your liabilities have changed, whether due to new debts or paying off old ones, your estate plan should reflect these changes. Addressing debts now helps avoid unnecessary complications for your heirs.

Starting the year with a clear financial strategy ensures that you are fully prepared for both anticipated and unexpected events.

Life Changes from the Previous Year May Impact Your Estate Plan

Life has a way of changing quickly. Major life events such as the birth of a child, marriage, divorce, or the passing of a loved one can all have a direct impact on your estate plan. In Buffalo, where family dynamics often change, February presents an opportunity to take stock of any events from the previous year and how they might affect your wishes.

• Update beneficiaries: If you have recently experienced any of these life events, it’s crucial to review your beneficiaries to ensure that they still align with your current wishes. For instance, if you’ve had a child, your will should reflect this by naming your new child as a beneficiary or guardian.
• Reconsider guardianship: If you’re a parent, revisiting your guardianship arrangements for minor children is a priority. Changes in family dynamics or the availability of potential guardians should be addressed.
• Changes in personal relationships: Divorce or the loss of a spouse can drastically change your estate planning needs. If you’ve gone through significant life transitions, ensuring your estate documents reflect these changes is essential.

Reviewing your estate plan after life changes ensures that your wishes are still accurately represented, and that loved ones are provided for as intended.

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Staying on Top of Tax Law Changes

Tax laws, both on a state and federal level, are constantly evolving. In New York, for instance, the estate and inheritance tax laws can have a significant impact on how much your heirs will owe upon your passing. Ensuring your estate plan is designed to minimize tax liabilities and maximize your assets for beneficiaries is critical. February allows you to prepare for any upcoming tax changes before the filing deadlines hit.

• New York estate tax: New York’s estate tax can affect estates above a certain threshold. The tax laws around estates change regularly, and keeping up with those shifts can help you avoid paying unnecessary taxes. Estate planning attorneys, like those at Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., can help you navigate these complexities.
• Federal estate tax changes: On the federal level, annual adjustments may impact the estate tax exemption amounts. These fluctuations should be accounted for when planning your estate, and updating your documents ensures your loved ones don’t face an unexpected burden.

By updating your estate plan with the latest tax laws in mind, you can ensure your assets are protected and efficiently passed down to your beneficiaries.

Health Care Directives and Powers of Attorney Should Be Reviewed Regularly

As part of your estate plan, it’s important to review documents like your health care proxy, living will, and durable power of attorney. These documents allow you to designate someone to make medical decisions for you if you’re incapacitated. February is the perfect time to make sure these documents are current, especially if you’ve had any changes in your personal life or health.

• Review health care proxies: If the person you designated as your health care proxy has had significant changes in their life, such as moving far away or experiencing their own health issues, it may be time to appoint someone new.
• Update living wills: As you age or experience significant health changes, your preferences for medical care may evolve. Updating your living will ensures that your desires are respected in the event of a medical emergency.

Taking the time to ensure your health care documents are up to date offers peace of mind, knowing that your wishes will be followed if the need arises.

1. Assess Your Trusts and Asset Protection Strategies
2. Many individuals create trusts as part of their estate planning strategy to protect their assets and avoid probate. However, over time, your circumstances may change, requiring updates to the trust. In Buffalo, where property values fluctuate and families grow, reviewing your trusts annually is essential to maintaining the protection and control you desire.

• Trust funding: Make sure that all your significant assets are properly titled into your trust. If you’ve acquired new property or investments, they should be included in your trust.
• Trust management: If the individual or institution you appointed as trustee is no longer capable of managing your trust, now is the time to make changes to ensure your trust is administered properly.

Ensuring that your trust is properly funded and managed protects your estate and ensures a smooth transfer of assets when the time comes.

Avoid the End-of-Year Rush by Planning Early

Many individuals rush to update their estate plans at the end of the year to meet tax deadlines or ensure everything is in place before the year closes. However, this last-minute approach can lead to oversight or rushed decisions. February offers a more relaxed environment to thoroughly review your plans and make thoughtful decisions.

• Less pressure: With fewer deadlines and distractions, reviewing your estate plan in February gives you the time you need to consider all aspects carefully.
• Comprehensive review: By addressing your estate plan early in the year, you avoid the stress and pressure that often accompanies year-end planning.

Starting the year with a well-organized estate plan ensures that you are fully prepared for whatever the year may bring.

Consulting with an Estate Planning Attorney

Whether you are updating an existing estate plan or creating a new one, working with an experienced estate planning attorney is crucial. At Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., our team can guide you through the process, ensuring your estate plan is legally sound, up-to-date, and customized to meet your needs.

• Expert advice: Our attorneys will help you navigate the complexities of estate law, ensuring your plan aligns with both your personal and financial goals.
• Tailored solutions: We offer personalized solutions based on your unique circumstances, helping you maximize your estate’s value and minimize potential tax liabilities.

Consulting with an experienced attorney ensures that your estate plan is as effective and efficient as possible.

Estate planning is an essential step in ensuring that your loved ones are cared for and that your wishes are respected after you’re gone. February presents a perfect opportunity to review your estate plan in Buffalo, New York, ensuring that everything is in order for the year ahead. By taking the time to review your assets, beneficiaries, tax implications, and health care directives, you can approach the future with confidence.

If you’re ready to review or create your estate plan, reach out to Cole, Sorrentino, Hurley, Hewner & Gambino, P.C.. Our experienced attorneys are here to help guide you through the estate planning process and provide the advice and support you need.

To learn more about this subject click here: How to Handle Debts and Liabilities in Your Estate Plan