Tax Season: The Perfect Time for Estate Planning

Tax season is a dreaded time of year for many people. It means sorting and organizing documents, filling out paperwork, and wading through a process that’s often time-consuming and complicated. That can make it overwhelming, and hard to begin.

This is the very reason many people never start the estate planning process, or don’t review their estate planning documents regularly. The whole thing can seem overwhelming, and they just don’t know where to start. But here’s the good news: if you begin estate planning during tax season, you’re already halfway there. You’re already reviewing your specific asset information and your general financial situation. It would be a shame to do all that work and not take one more step, applying it toward an estate plan.

While you have everything out and organized, it’s the perfect time to think about estate planning and take control of your financial situation. This same information is exactly what an estate planning attorney needs to create a new plan, or review an existing one, with you.

Estate Planning Is Simpler Than You Think

At this point, estate planning simply becomes a conversation with a few key decisions. It can be complex, but it certainly doesn’t have to be. That’s up to you, based on your goals and your unique situation. In most cases, the process is fairly straightforward and clear.

Think of It as a Financial Check-Up

Tax season is a lot like any other annual check-up. Think of it as your financial examination, and the same concept applies to estate planning. A lot can change in a year, and any one of those changes may affect your current plan. It’s a good idea to get in the habit of regular estate plan reviews, just like any routine check-up.

Estate planning isn’t a one-time, set-it-and-forget-it plan. As you move through life, it isn’t only your assets, circumstances, and personal situations that change. Laws and estate planning strategies change too. It’s important to review everything to make sure it still makes sense, and that there isn’t something you could be doing differently.

The estate plan you have in your 30s doesn’t look the same as the one you’ll need in your 50s, 60s, or 70s. The basic Powers of Attorney you needed in your early 20s look very different from the plan that makes sense once you get married, have children, have special needs beneficiaries, a blended family, or other complexities.

A Fresh Perspective for Next Year

Preparing for tax season can also give you a new perspective on your financial situation. This may be a good time to start considering different tax or gifting strategies within your estate plan, so you’re better prepared for next year’s tax season.

The Bottom Line

We always recommend estate plan reviews every few years, and it only makes sense to do this while you’re already gathering your asset information and in that mindset. What better time than tax season?

Our firm is here to help. Each of our estate planning attorneys meets with multiple clients every single day, so there isn’t anything we haven’t seen before. Rest assured, we’re adept at making this a seamless process for you and your loved ones.