As the fourth quarter of the year begins, many people turn their attention to closing out financials, preparing for tax season, and organizing holiday plans. But it is also an ideal time to take a fresh look at your estate plan. Even if your plan was prepared by a professional in the past, changes in your life, finances, or the law may require important updates.
For individuals and families across Tennessee and Mississippi, especially in rural communities, this checklist can help ensure your legacy is protected and your plan is working the way it should.
Review Your Will and Trust
Start with your core documents. Your will and any living or testamentary trusts are the foundation of your estate plan. Look at these documents and ask:
- Are your beneficiaries still correct?
- Have there been any births, deaths, marriages, or divorces that affect your plan?
- Are your chosen executor, trustee, and guardians still the right people for the job?
If you live in Tennessee, note that updates in probate and trust law over the past year may affect how your plan functions. Your attorney can help make sure your documents still comply with current rules and reflect your wishes clearly.
Revisit Beneficiary Designations
Accounts like IRAs, 401(k)s, life insurance policies, and bank accounts often pass to heirs outside of your will. These are controlled by beneficiary designations. Check to see if any need updating.
Mistakes here are common. If your retirement account still names an ex-spouse or a deceased relative, those funds may end up in the wrong hands. Review each account carefully and make sure everything aligns with your overall estate plan.
Update Your Powers of Attorney
Your financial power of attorney and health care directive authorize others to act for you in emergencies or times of incapacity. These documents should be reviewed annually, especially if:
- Someone you appointed is no longer available or trustworthy
- You moved to a new state
- Your health or finances have changed significantly
Tennessee hospitals and financial institutions may be hesitant to honor documents more than five years old. A quick review now could prevent major problems later.
Reevaluate Your Trust Funding
If you have a revocable living trust, it must be funded correctly to avoid probate. That means retitling certain assets into the name of the trust. You may have purchased new property, opened new accounts, or inherited assets this year. Make sure they are included.
Many clients in rural Tennessee overlook real estate or inherited farmland. Double-check that deeds, account titles, and business interests reflect your trust structure. Your attorney can help transfer these assets before the year ends.
Take Advantage of Gifting Opportunities
Each year, the IRS allows individuals to gift up to a certain amount per recipient without triggering gift tax. For 2025, the annual exclusion is $18,000. This can be a strategic way to reduce your taxable estate or simply support loved ones.
Examples include:
- Paying for a grandchild’s tuition or medical bills
- Helping a child with a down payment on a home
- Donating to charities that reflect your values
Both Mississippi and Tennessee currently have no state-level gift or estate tax, making this strategy even more appealing for local families.
Review Retirement Plans and the SECURE Act
Retirement accounts deserve special attention, especially with changes under the SECURE Act. Many inherited IRAs are now subject to a ten-year withdrawal rule. If your estate plan involves passing retirement assets through a trust, it is essential to review those provisions with your attorney.
Incorrect trust language could trigger unintended taxes for your heirs. Work with your legal and financial advisors to confirm your strategy still makes sense.
Inventory Your Assets and Liabilities
Make a complete list of your:
- Bank accounts
- Investment accounts
- Real estate
- Vehicles
- Business interests
- Loans and credit lines
- Life insurance policies
This inventory will make things far easier for your executor or trustee. It also helps you identify any missing or improperly titled assets that could delay or complicate the distribution of your estate.
Review Business Succession Plans
If you own a business, the end of the year is a great time to revisit your succession plan. Is your next-in-line still prepared and willing to take over? Have your business agreements or ownership structure changed?
In Tennessee, small family-run businesses are a key part of the local economy. But without a clear succession plan, even successful operations can falter after a founder passes away. Make sure your estate plan includes continuity planning for your business interests.
Communicate with Loved Ones
A well-written plan only works if people know about it. Use holiday gatherings or end-of-year check-ins to talk to your family about your intentions. You do not need to share dollar amounts or private details. Just make sure someone knows:
- Where your documents are stored
- Who to call in an emergency
- What your general wishes include
This can reduce confusion and stress down the road, and it gives your family a chance to ask questions now while you are here to answer them.
Schedule a Year-End Legal Checkup
Lastly, set up a quick meeting with your estate planning attorney. This is your opportunity to:
- Address changes in tax law or probate rules
- Ask about better ways to protect assets
- Identify planning opportunities before the new year
At Lancaster Law Firm, we help individuals and families throughout Mississippi and Tennessee protect what matters most. Whether you live in Memphis, Jackson, or a small town in rural Tennessee, our team is ready to review your documents and make sure your estate plan still fits your goals.
If you need help reviewing or updating your estate plan, contact Lancaster Law Firm to schedule your consultation.