A Year-End Estate and Financial Planning Checklist: Make Your List and Check it Twice

With so much going on during the holiday season, it may seem more stressful to think about review your estate plan. Here is a simplified list to assist, and not interfere with presents and champagne.

1. Review required minimum distributions (RMDs).
   1. Those 70½ or older must take RMDs from certain retirement accounts by December 31 or face a penalty equal to 50%.
2. Reduce taxable income and rebalance investments.
   1. Review your asset allocation and, if necessary, rebalance your investment portfolio.
3. Max out company retirement plan contributions.
   1. If you are not able to contribute the maximum amount, try to contribute enough to qualify for any matching contributions by your employer.
4. Review insurance coverage.
   1. Make sure you have adequate policies in place insuring everything you need, from your life to assets, to help plan against the unexpected.
5. Review estate plans and beneficiary designations.
   1. These should be reviewed  periodically to be sure that the plan you have in place accomplishes your goals
6. Make gifts.
   1. The annual exclusion is $15,000 per person before it counts against your lifetime exclusion.
7. Fund your Health Savings Account (HSA).
   1. Those in high-deductible health-insurance plans can save as much as $3,450 in pre-tax dollars in these types of accounts. Those aged 65 and older cannot contribute to one, but can still use the money for eligible out-of-pocket medical expenses.
8. Use your flexible spending dollars.
   1. Unused funds in a Flexible Spending Account (FSA) are typically forfeited at year’s end, so  spend them for eligible health and medical expenses by December 31
9. Check your credit and identity.
   1. With technology, checking your credit has become easier.
10. Organize your records for 2019.
    1. Gather and organize the documents and 2018 records that will be needed to prepare your tax returns in 2019, and shred what you do not need.

See A Year-End Estate and Financial Planning Checklist: Make Your List and Check it Twice, The National Law Review, December 6, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.