As the year comes to a close, many New Yorkers focus on wrapping up work projects, finalizing tax strategies, or planning for the holidays. But before the calendar turns, it’s also the ideal time to review your year-end estate planning checklist.
Estate planning isn’t just about preparing for the unexpected—it’s about ensuring your financial and personal wishes are protected, no matter what the new year brings. Whether you’re a busy professional, a parent, or a retiree, these five moves will help you start January with peace of mind and a solid plan in place.
This guide walks you through practical steps to update beneficiaries, review key legal documents, and make smart financial decisions while there’s still time to act before year-end.
1. Have You Reviewed Your Beneficiaries and Account Designations?
One of the most common (and costly) oversights in estate planning is failing to keep beneficiary designations current. Even the most carefully drafted will or trust can’t override the names listed on your accounts.
Take a few minutes this December to check the beneficiaries for:
- 401(k), IRA, and pension accounts
- Life insurance policies
- Payable-on-death (POD) and transfer-on-death (TOD) accounts
- Employer-provided benefits and deferred compensation plans
NYC Tip: If you’ve divorced, remarried, or added children or grandchildren in recent years, make sure your beneficiary designations reflect your current wishes. New York’s revocation-on-divorce statute doesn’t always apply to federally regulated accounts, such as 401(k)s or life insurance policies, so it’s critical to confirm each designation individually.
Updating your beneficiaries now can prevent your assets from being distributed in ways you never intended—something that happens far too often when families assume their will covers everything.
2. Should You Update Your Power of Attorney and Health Care Proxy?
Your Power of Attorney (POA) and Health Care Proxy are two of the most important documents in your estate plan—and both need to stay current. If they’re more than a few years old or were signed before New York’s 2021 Power of Attorney law update, it’s time for a review.
Why December is ideal:
- Financial institutions and hospitals often update their systems in January, which can delay processing or verification of older forms.
- The holiday season gives you a chance to confirm that your chosen agents are still available and willing to serve.
If you travel during the holidays, keep digital copies of these documents in a secure, accessible place. Emergencies don’t wait until the new year, and having your legal documents ready can make all the difference.
For a deeper look at how these documents protect your family, see our post on Five Things Every Parent Should Know About the Probate Process.
3. Are Your Trusts Properly Funded and Titled?
A trust can only protect your assets if it actually holds them. December is a great time to make sure your assets are properly titled and transferred into your trust.
Checklist for this month:
- Confirm that real estate deeds, brokerage accounts, and business interests are titled in the name of your trust.
- Move any new investments or accounts you’ve opened this year into the trust.
- Review property tax bills to confirm that your trust or individual name appears correctly, especially if you’ve refinanced or made ownership changes.
If you have a Medicaid Asset Protection Trust (MAPT), transfers made now will start the five-year look-back period before 2030—an important window for families considering long-term care planning.
You can learn more about how trusts work and why funding matters in our blog on Reasons to Avoid Probate.
4. Have You Organized Your Digital and Financial Records?
Today, a significant part of your legacy lives online. From digital wallets to photo libraries and subscription accounts, managing these assets is now a key part of comprehensive estate planning.
Before the year ends, take time to:
- Create or update your digital asset inventory (logins, passwords, storage locations).
- Confirm your estate plan includes RUFADAA authorization, which allows your executor to legally access online accounts.
- Back up critical documents—wills, trusts, insurance policies—to a secure cloud or encrypted drive.
NYC Tip: Many financial institutions now offer “digital legacy” options that let you pre-authorize access for a trusted contact. Setting these up now ensures your executor or family can manage your accounts smoothly if something happens.
5. Are You Taking Advantage of Tax and Gifting Opportunities Before 2026?
With the federal estate tax exemption set to drop from $13.61 million to about $6.8 million in 2026, 2025 is the final full year to take advantage of higher thresholds. For New Yorkers, this change could have a major impact on family wealth and charitable giving strategies.
In December, consider:
- Making lifetime gifts to children, grandchildren, or trusts.
- Funding a Spousal Lifetime Access Trust (SLAT) or Irrevocable Life Insurance Trust (ILIT).
- Reviewing charitable donations for both legacy impact and year-end tax deductions.
Important for New Yorkers: The state estate tax exemption—currently around $6.94 million—comes with a “cliff” that can erase the entire exemption if your estate exceeds the limit by more than 5%. Thoughtful year-end planning with your attorney or financial advisor can prevent unnecessary taxes and preserve your legacy.
Final Thoughts: Start the New Year with Confidence
Year-end estate planning isn’t just about ticking boxes—it’s about ensuring your family’s protection and peace of mind. Taking a few hours this December to update key documents, check beneficiaries, and review your trusts can make a lasting difference for the people who matter most.
At The Village Law Firm, we help New York families design estate plans that adapt as life changes. If you’d like guidance reviewing your plan before the new year, we’re here to help.
Schedule your year-end planning session with The Village Law Firm today and step into 2026 knowing your legacy—and your loved ones—are protected.
