Paul O. Dillon, Attorney at Law

What the Loss of Step-Up in Basis could Mean for Estate Plans

Adding to the uncertainty around estate planning for 2025 are discussions about eliminating the step-up in basis, which would present a significant challenge for families seeking to grow wealth over generations. A recent article from Forbes, “Estate Planning: What The Potential Elimination Of Step-Up In Basis Means For Families,” explains how this tool has protected homeowners and family business owners from overly burdensome taxes.

Step-up in basis is a tax provision that adjusts the value of an inherited asset to its fair market value as of the date of the original owner’s death. If a person purchased a home for $100,000 several decades ago, now valued at $1 million, heirs would inherit the home at the stepped-up value of $1 million. If they decided to sell the property immediately, they would owe little or no capital gains taxes.

If there were no step-up in basis, the impact would be felt by middle-class families who inherit property, stock investments, or small businesses. This would have a significant impact on opportunities for building generational wealth.

Heirs who hope to keep a home in the family or continue to own rental property may find themselves needing to sell the assets to cover the tax bills. Small business owners who rely on this step-up in basis would also face a liquidity crisis, unless there were ample funds for heirs to keep running the business. The alternative is to close the business.

The solution, if this change does occur, can be found in a few different estate planning strategies. They include:

• Using trusts, such as a revocable living trust, may help manage capital gains. However, they must be created correctly by an experienced estate planning attorney. Irrevocable trusts should be examined as a possible alternative.
• Gifting strategically, even while living, may be another option. This could help by locking in current tax rules and taking advantage of the currently high federal exemptions.
• Tax planning should always be included in estate planning, especially if the step-up in basis is eliminated. Roth IRAs, 529 plans, or life insurance-based strategies may help shield assets passed on to the next generation.
• Donations to charities and the use of donor-advised funds are a means of eliminating or minimizing capital gains taxes, while supporting causes that hold meaning for the family.

However, things change, the need for proactive estate planning by a skilled estate planning attorney remains a constant. With effective estate planning, homeowners and small business owners can safeguard their wealth, ensuring it can be passed on to future generations.

Reference: Forbes (March 21, 2025) “Estate Planning: What The Potential Elimination Of Step-Up In Basis Means For Families”

Should I Have an Advanced Health Care Directive and a POLST?

It’s easy to be overwhelmed by the numerous acronyms in estate planning. However, it’s essential to understand which documents you need and which ones you may not yet require. The POLST is a prime example. According to a recent article from MSN, “Liza Horvath, Senior Advocate: Do I need a POLST?” everyone should have a will, a power of attorney for finances and an advance healthcare directive (AHCD).

A will is used to distribute assets after death, while the power of attorney is used to name a representative to act on your behalf for financial matters. In contrast, the AHCD and POLST are used to express your wishes regarding medical care. The AHCD and the POLST are also slightly different from the Healthcare Proxy or Power of Attorney for Healthcare.

Many estate planning documents have different names in various states. Therefore, it’s essential to consult with an estate planning attorney in your area to determine which documents are required. A document created and executed in one state may not be valid in another state. Therefore, if you spend time in more than one jurisdiction, you’ll need to ensure that your estate planning documents are aligned with the laws of all applicable states.

If you are seriously ill and don’t want to be resuscitated in a medical emergency, you should have both the AHCD and the POLST. The POLST is an acronym for Physician Orders for Life-Sustaining Treatment. The Advance Health Care Directive appoints a person to express your wishes regarding healthcare as outlined in the document.

The POLST, which is completed with your physician, is used to tell emergency responders and other healthcare providers not to resuscitate you in case of cardiac arrest. The AHCD is not a “don’t resuscitate” order.

If you have a POLST, it should be kept in your home, possibly posted on the refrigerator, where anyone entering the house for an emergency is likely to see it. You may want to provide copies to your physician and local hospital and keep a copy in your car. The POLST is usually printed on bright paper for higher visibility.

If emergency responders come to your home and they don’t see the POLST, they are required by law to keep you alive. If your adult child has the POLST, but it’s not in your home, again, they will take measures to keep you alive.

POLST, like other estate planning documents, should be prepared with thoughtfulness. While both the AHCD and POLST can be emotionally challenging to consider, having them in place as part of your overall estate plan will alleviate the guesswork your family will face if they are unsure of your wishes. You don’t want this to happen during a health emergency when emotions are running high.

Discuss with the person you are naming as your healthcare agent to ensure that they understand your wishes. If your sibling is too emotional to follow your wishes and tells you she won’t be able to instruct the doctors to take you off life support, then she may not be the right person to act as your healthcare proxy. Name a person who will follow your wishes, even if they differ from their own.

Having a comprehensive estate plan means having the right documents in place for your healthcare, in sickness and in health. Your estate planning attorney will help create the documents to express your wishes, whatever they may be.

Reference: MSN (March 17, 2025) “Liza Horvath, Senior Advocate: Do I need a POLST?”

Gene Hackman and Betsy Arakawa Relied on Trusts in Estate Plans

The wills of actor Gene Hackman and his wife, Betsy Arakawa, were obtained by USA Today from their probate estate in Santa Fe shortly after their deaths. However, because the couple had engaged in estate planning and used trusts, how the trust’s assets will be distributed remains private—one of the primary reasons for establishing a trust.

An article from USA Today, “Gene Hackman and wife Betsy Arakawa named each other in their wills,” states that both estates will be placed into a trust. The terms of the trust will bind the trustee and require them to carry out the directions in the trust, which will occur privately and without court involvement.

In his will, executed in June 2005, Hackman appointed the remainder of the trust estate of a separate trust, dating back to September 1994, to the GeBe Revocable Trust. He also acknowledges three children from his prior marriage, Christopher Hackman, Elizabeth Hackman and Leslie Allen.

Julia Peters was named as the second successor of Hackman’s estate and has been appointed the personal representative of both Hackman’s and Arakawa’s estates. She took over the duties because the first successor, Michael Sutin, predeceased both Hackman and Arakawa. The day after the court agreed to her appointment and admitted Hackman’s will to probate, notices of her appointment were mailed to Hackman’s three children.

A successor trustee is the person who assumes the responsibility of managing a living trust in the event the original trustee dies or becomes incapacitated. A personal representative is responsible for managing the decedent’s estate. They are responsible for paying debts and taxes, collecting assets and distributing the remaining property to heirs or beneficiaries. This is an unfortunate but accurate illustration of why it is crucial to appoint more than one trustee.

The court documents state the trust assets in the GeBe Revocable Trust and the Gene Hackman Living Trust are to be administered, and the GeBe trust passes through the will to the Gene Hackman Living Trust.

Arakawa’s will details her wishes for her own estate. She wanted all tangible personal property to be distributed to the designated individuals listed in a separate document from her will. The remainder of her estate was then to be transferred to the trustee for Hackman’s trust, if she outlived him.

While the couple certainly expected Hackman, 30 years older than his wife, to die first, their estate plan served them well. So far, this is an excellent example of an estate plan that maintains privacy and honors wishes after death.

Reference: USA Today (March 15, 2025) "Gene Hackman and wife Betsy Arakawa named each other in their wills"

How Young Is Too Young to Have a Will?

Being young and healthy is unfortunately no protection against an early death, which is why all adults aged 18 and up and especially parents need to have an estate plan, including a will, says a recent article, “You’re Young and Barely Making Ends Meet. Why You May Need a Will,” from Barron’s.

Only about 22% of young adults aged 29—44 and nearly 15% of adult Gen-Zs, aged 19—28, have estate plans. This poses risks for their spouses, if they are married, and their children, if they are parents.

A last will and testament is used to distribute your assets upon death. This is the best-known aspect of estate planning. Still, it’s only one of several documents, including a living will, also known as an advance directive, which designates who may make medical decisions on your behalf in the event of incapacity. While someone in their 20s or 30s may not have children, they may still enjoy activities like rock climbing, bungee jumping and engaging in physically demanding pursuits. People in their 20s and 30s are statistically more likely to be injured in car accidents, skiing, or while travelling.

This doesn’t mean anyone should limit their activities. However, it does mean young adults need to have estate plans in place to express their wishes in case of incapacity or death and protect themselves and their loved ones. Once these documents are prepared and executed, parents or the individual named in the living will are allowed to communicate with doctors, access medical records and be involved in a young adult’s care. Otherwise, decisions may be made by doctors and not family members.

Young adults with small children need a will to name a guardian who will be responsible for raising their children in the event both parents die unexpectedly. If there is no will, or if the will doesn’t include a guardian, a court will decide who will raise the children.

Every adult should also have a power of attorney. This gives a person of your choice the legal ability to manage your finances, including paying bills. A power of attorney can be customized to permit your agent—the person named in the POA—to perform specific actions but not others. For instance, you may want the person to be able to access accounts and pay bills, but not to sell your Pokémon card collection.

Another important aspect of an estate plan is to verify the beneficiaries named on various types of accounts. Any assets with a named beneficiary, such as an IRA, investment account, or insurance policy, will not need to go through probate and can be transferred directly to the beneficiary. However, if the IRA you opened at your first job named your last girlfriend as the beneficiary and you’ve since broken up, make sure to change the name on the account. The beneficiary designation overrides the will, so it won’t matter if you left all your assets to your fiancé; your former partner will still inherit the account.

Estate planning attorneys assist individuals at all ages and stages of life with their estate planning needs. The estate plan you need in your 20s and 30s differs from the one you need in your 60s. However, at any age, an estate plan is essential for being a responsible adult.

Reference: Barron’s (March 15, 2025) “You’re Young and Barely Making Ends Meet. Why You May Need a Will”

What are the Changes in Estate Planning for 2025?

Federal laws about estate taxes aren’t the only ones that estate planning attorneys must stay up to date with. There are changes to state estate laws, inheritance laws, and, more recently, issues surrounding digital assets that require attention. A recent article from Dermatology Times, “Anticipated Changes in Estate Planning for 2025 What Dermatologists Need to Know,” contains information not just for doctors, but for everyone.

Will the High Federal Estate Tax Exemption End?

The federal estate tax exemption is now $13,990,000. However, it is scheduled to drop to $seven million on Jan. 1, 2026, unless a new tax law changes the expiration date. As it stands now, anyone may gift nearly $14 million (or almost $28 million for a married couple) without paying federal gift or estate tax. Once the New Year's Eve parties end in 2026, the gift and estate tax limit will decrease to approximately $7 million, applicable to gifts made during your lifetime or at your death. Federal gift and estate tax rates are 40%, which makes this exemption particularly valuable to high-income earners.

There is no way to know what will happen to these exemptions, so planning for a worst-case scenario is worthwhile. One strategy is simply gifting assets expected to appreciate to an irrevocable trust, with family members as beneficiaries. They could be a spouse, children, grandchildren, or future descendants. Such a trust also provides creditor protection, especially important when estates are large.

Inherited Retirement Accounts and Required Minimum Distributions

If you inherited an IRA before 2020, you’re exempt. However, anyone inheriting an IRA after 2020 may be subject to new Required Minimum Distributions (RMDs) starting January 1, 2025. The exceptions include being the spouse or a minor child or being less than ten years younger than the original account owner, and being disabled or chronically ill. Otherwise, you’ll have to withdraw the entire account by the tenth anniversary of the original owner’s death.

A few more details were added to this rule. If the deceased account owner was already taking Required Minimum Distributions (RMDs), the heir of the IRA is also required to take annual distributions. Suppose the original owner wasn’t required to take annual distributions upon death. In that case, the beneficiary can take withdrawals at intervals of their choosing, if the entire account is depleted within the ten years. Penalties for failing to take Required Minimum Distributions (RMDs) as required are high, so it is essential to consult with your estate planning attorney to ensure compliance with IRS rules.

Local Estate Taxes

Your estate planning attorney can guide you through the estate taxes in your state. Some states also impose inheritance taxes. The rate of the inheritance tax depends upon the relationship between the heir and the decedent. The estate typically pays the estate tax, and the heirs pay the inheritance tax. Some states impose both inheritance and estate taxes, while others do not.

Estate Issues Concerning Cryptocurrency

As more people invest in cryptocurrency, this intangible new asset class needs to be incorporated into the estate plan. You’ll want to name a digital executor who is familiar with this brave new world, as it has its own unique language and skill set. Someone who doesn’t know the difference between a cold wallet and an NFT won't know how to protect their digital wealth.

Talk with your estate planning attorney before too much of the year slips away. It takes time to plan and execute estate plans, and waiting until the fourth quarter of 2025 may not provide enough time to implement a plan to protect your estate.

Reference: Dermatology Times (March 21, 2026) “Anticipated Changes in Estate Planning for 2025 What Dermatologists Need to Know”

Estate Planning for Creators, Artists and Writers

There is no shortage of articles about legal battles over the control of famous artists’ works and their estates. There are many lesser-known artists, including content creators, graphic designers, photographers and others in creative fields, who should consider pointers in a recent article from New York State Bar News, “Estate Planning for Artists: How to Plan and Protect Your Legacy,” about protecting their legacies.

The creative person’s estate includes original works of art. However, it also includes intellectual property, copyrights, trademarks and the rights to derivative works. For instance, an artist who sells artwork on the popular Redbubble website maintains ownership of their art. However, they still need to protect their art and their estate.

Artists often own studios or businesses to manage their works and rights. Their estate plan should be drafted by an experienced estate planning attorney who understands the value of their creative property, as well as the studio or business assets.

Copyrights last for the life of the author plus an additional 70 years, so an estate plan needs to address the intellectual property ownership of the artist during their lifetime and after death. New revenue-generating opportunities may emerge after the artist’s death, even if it seems unlikely while they are alive. Elvis Presley could be said to be more popular now than he was during his lifetime. While this is an extreme example, many artists are recognized only after they have passed away.

The artist should ensure that they name an executor who shares their passion for their art, as well as possesses the skills to manage their creative legacy and administer their estate. It’s wise to name a successor in case the primary executor is unable to serve in this role when the artist dies.

Having a plan for communication is advantageous for creative and “regular” estates. If multiple family members need to sign off on something, such as if a copyright comes into possession of more than one heir, getting everyone together to review and agree on a document can be challenging.

To enforce intellectual property rights, artworks must be registered with the U.S. Copyright Office. Doing this on an ongoing basis while the artist is alive will make it easier for heirs to defend the estate. If this is not done during the artist’s lifetime, it will be challenging, if not impossible, to do so when the artist is incapacitated or after they’ve died.

Contracts, consignments, sales, gifts and loans must be drafted to include intellectual property rights as narrowly as possible. The records of these transactions must be maintained even after the contract has been concluded to document the license. The records may also be useful for heirs to locate or determine ownership of physical artwork.

If the artist has a prenuptial or postnuptial agreement, it may include language concerning the retention of intellectual property rights by the artist in the event of a divorce. Joint ownership of artwork with a hostile ex-spouse can be as difficult as outright theft to an artist’s legacy management.

Careful record-keeping may not be a creative person’s favorite activity. However, using and retaining detailed records will be worthwhile for both the artist and the estate. Inventories of completed work, documenting intentions for incomplete artwork or artwork the artist doesn’t wish to release, as well as gifts or exchanges with other artists, and information about digital records, along with instructions on how to access them, will make the executor’s job easier.

Dying intestate, or without a will, is never a good idea, especially when there are multiple heirs. If a person dies without a will and there is property in their estate that has not been disposed of under a trust, an administration proceeding must be filed, and the property will be distributed according to the state’s laws. For an artist, this can undermine the management of their work and lead to a loss of control over their intellectual property. The artwork could go to people who don’t care about it or don’t know how to manage it.

An estate plan is as essential for the creative person as it is for someone who can’t draw a stick figure. Having a will, trust, power of attorney and healthcare documents protects individuals, their families and their legacies.

Reference: New York State Bar News (March 6, 2026) “Estate Planning for Artists: How To Plan and Protect Your Legacy”

How Does a No-Contest Clause Protect Your Will?

In a perfect world, you create your will with the guidance of an experienced estate planning attorney, your heirs inherit their legacy and everyone lives happily ever after. In the real world, however, it doesn’t always work out that way. Every year, families scrap over inheritances, says a recent article from Market Watch, “Avoid drama with your will by adding this to your estate plan.”

What can you do? Consult with your estate planning attorney about the possibility of including a no-contest clause in your estate plan. This can deter heirs from challenging your will by creating a no-win situation if they challenge the will in court. When a no-contest clause is included in the will, the beneficiary risks losing their entire inheritance.

The goal is to avoid challenges resulting from an emotional response to grief, which is not unusual, or a long-standing family resentment emerging after the death of a parent. People who are quick to pursue litigation will think twice with a no-contest clause.

Is it possible your heirs might challenge your will? Even if the likelihood is low, it’s worth adding the clause. Estate litigation is lengthy, expensive and emotionally draining. Second marriages, economic disparities among siblings, or estranged offspring provide fertile grounds for will challenges. However, even happy families sometimes find themselves in court battles when large inheritances are at stake.

Another factor: seniors who live longer than expected may have heirs who thought they were receiving a substantial inheritance. When there’s a smaller inheritance, the surprise can lead to litigation. Unfortunately, the cost of estate litigation can significantly reduce the value of an inheritance, making it even smaller.

Warren Buffett’s advice to talk about your estate plan with your adult children is a straightforward and sound approach for most families. Offspring taken by surprise in a time of emotional turmoil are more likely to become contentious.

You don’t have to reveal every detail to your heirs. Howwever, you can educate them about the contents of the will and the estate in general. Letting them know about the no-contest cause and your reasons for adding it may preempt strong reactions if they don’t learn about it until after you’ve passed, and they can’t get answers to their questions.

If the family is a blended one, someone is going to be left out entirely, or there are nuances, such as one person inheriting outright while another receives distribution through a trust over time, there’s the possibility of a challenge. If you plan to give assets to someone who isn’t a family member, like a charity or a close friend, the family may unite to challenge the will.

A no-contest clause isn’t a guarantee there won’t be a challenge after you’ve died. However, it’s a simple thing to insert into your will and reduces the risk. Consult with your estate planning attorney about whether your state allows them—Florida does not—and explore other strategies to minimize estate litigation.

Reference: Market Watch (March 14, 2026) “Avoid drama with your will by adding this to your estate plan”

Should You Have a Revocable Trust?

There are many good reasons to include a revocable trust as part of your estate plan, according to a recent article from Columbus Monthly, “Planning Ahead: When to Consider a Revocable Trust.” You might think trusts are only for the wealthy. However, that’s not true. An experienced estate planning attorney can easily establish a trust to protect assets and direct their distribution. Distribution can occur while you’re living or after you’ve passed away.

Trusts also distribute assets to beneficiaries outside of probate, which avoids the delays and costs associated with probate and, even better, keeps your private business confidential between you and your beneficiaries. When a will is probated, many courts require an inventory of assets. The will becomes part of the public record, and anyone—including ex-spouses, local realtors, thieves and angry relatives—can read your will and learn about your bequests.

A tip from the professionals: ensure an estate planning professional establishes your trust. Every state’s laws are different and what your brother-in-law in Idaho did might not work in Virginia.  You should also ensure that the trust is properly funded. If you don’t fund the trust, it won’t work as you intended.

Revocable trusts are used to pass assets after you’ve died. The language of the trust is tailored to your specific wishes. For instance, you may want your children to inherit a certain amount of money every year or only when they have reached goals, such as completing college.

Trusts can be created to fund education, serve as a deposit for a home, or initiate distributions upon reaching a specific age. This is especially beneficial for parents of young adults, who understand that giving a twenty-five-year-old their entire inheritance all at once may not be as beneficial as making partial distributions over a twenty-year period.

One example of a well-structured trust is a woman who owns land that has been in her family since 1947. There are two houses on the property. The land has been placed in a trust to manage the property, and the trust language stipulates that multiple generations can continue to reside there until there are no family members who wish to live on the property. At that point, the trust allows the trustee to sell the property and distribute the proceeds to the living beneficiaries.

Trusts are also useful when a person becomes incapacitated and needs someone else to access the assets owned by the trust to manage the person’s financial affairs. A home, bank account, or all a person’s assets can be placed in a trust, and then the trustee can manage the person's affairs without needing to go to court and file for guardianship.

Whether or not you need a trust should be discussed with an experienced estate planning attorney. It has applications for protecting heirs in the event of a second marriage, incapacity and controlling assets. Your attorney will determine the type of trust that best suits your unique situation.

Reference: Columbus Monthly (March 10, 2025) “Planning Ahead: When to Consider a Revocable Trust”

Lacking a Strong Estate Plan, Family Battle Destroys Farm

Farms passed from generation to generation require careful estate planning to keep them in the family. Without a good estate plan, the property becomes the subject of estate battles, family fractures and even forced sales. The recent article, “How Inadequate Estate Planning Led to Likely Sale of Family Farm” from Morning Ag Clips, explains what happened to one family.

A mother who owned a farm left a will that gave life estates to her son and daughter, and upon their deaths, the will directed their respective shares to pass to their children. The son’s share would pass to his two sons and the daughter’s share would go to her own daughter and son. The mother and the son passed away and the son’s two boys weren’t interested in farming. They filed a lawsuit to partition the farm and divide the proceeds. Partition refers to a court-ordered process for dividing jointly owned property when co-owners can’t agree on its sale.

The surviving sister (their aunt) objected, as she was still alive, still owned her life estate in half the property and lived on the property. She maintained that the property could not be partitioned until after her death. The court, however, found that the mother’s will created a tenancy in common between the siblings rather than a joint tenancy with the right of survivorship. When the brother passed away, his sons inherited his half of the farm. The court ruled that they had a legal right to seek partition of the entire property despite their aunt still being alive and living on the farm.

If the two sons move forward, their aunt faces a tough choice. She can buy them out if she has the funds to do so, or the entire property will be sold. If it’s sold, she will lose her home and the family legacy at the same time.

Here’s how a better estate plan could have prevented this scenario:

Survivorship protections. The will could have created a joint survivorship life estate, so that upon the first sibling’s death, the other would have inherited full ownership. This would have delayed the transfer to the next generation until the second sibling had passed.

Using a trust. Instead of using a life estate and the remainder through a will, the farm could have been placed into a trust, which would have provided more specific directions on how the farm was to be managed, utilized and distributed across generations.

Using an LLC. The mother could have transferred the farm into an LLC (Limited Liability Company) and heirs would have inherited the LLC. Provisions could have been added to prevent partition and allow the farm’s sale only if at least a majority of the family agreed to the sale.

Maintaining multi-generational entities, such as family farms, closely held businesses, real estate and other assets, requires skilled estate planning. To keep a farm or business in the family requires an experienced estate planning attorney with knowledge of how to protect both short-term and long-term goals.

Reference: Morning Ag Clips (March 6, 2026) “How Inadequate Estate Planning Led to Likely Sale of Family Farm”

Optimize Estate Planning and Update Financial Baseline to Secure Your Future

Revisiting estate planning and financial strategies in the first quarter of the year can yield long-lasting benefits, according to a recent article from Kiplinger, “10 Ways to Refine Your Financial Plan for a More Secure Future.” No matter how busy you are, these ten steps are a good use of your time.

Conduct an annual financial review. Gain a clear view of your financial situation to make informed decisions. Is your net worth the same as it was last year? How have your assets and liabilities changed? Has recent market volatility or a large purchase impacted your overall financial situation? An objective look from a bird’s-eye view shows whether you’re still on track to reach your goals or if you’re retired, ensuring that you’re still on the right path.

Review your philanthropic plans. Whether you’re donating a wing to a local hospital or making monthly donations to local charities, review your giving over the last twelve months. Are you taking advantage of tax benefits through strategies like Donor-Advised Funds (DAFs), or should you consider using Charitable Trusts instead? Consult with your estate planning attorney to ensure that your generosity also benefits you and your family if that is an objective.

Review budgets and spending habits. Having discretionary income doesn’t necessitate a free-for-all. Understanding income and spending is fundamental to financial health at any level. Examine last year’s expenses and separate out one-time costs, such as installing a new roof or incurring large medical bills. Once you’ve identified spending habits, map out a plan for the rest of the year. Treating money with intention is more rewarding.

What’s your illiquid compensation? If you establish a 10b5-1 plan, you can execute stock transactions during open trading windows, mitigating legal risk and balancing your corporate responsibility with personal priorities. This type of plan allows you to schedule trades in advance and align transactions with both near-term and long-term goals. Know the value of any non-cash compensation and how much of your net worth it represents.

Is it time to rebalance your portfolio? If you haven’t rebalanced your portfolio in the last year, now is the time to do so. Be sure your asset mix is still what you wanted. The nature of markets and fund managers makes it impossible to avoid shifts entirely.

Maximize tax-advantaged accounts. Don’t leave money on the table. Accounts like 401(k)s, IRAs, HSAs and 529 plans all work to maximize tax advantages. However, it is only if you’re making contributions strategically. If your income is too high for direct contributions, or if you have a lower income, consider Roth conversions for IRAs and 401(k) plans.

Check your risk management. Insurance isn’t as sexy as investment portfolios. However, the protection is worth the investment. Make sure your wealth is protected with the correct insurance and a good estate plan.

Review estate planning and make annual exclusion gifts. Your estate planning attorney can explain how using your annual exclusion can help reduce estate tax exposure and benefit your loved ones. You can give $19,000 to as many people as you want annually without triggering any gift taxes or reducing your lifetime estate tax exemption. Making these gifts earlier in the year allows for more growth over time, making it a smart move for generational wealth transfers.

Tax planning season. If your finances are complex and your assets extensive, tax-saving strategies need to be revisited annually, and the first quarter is the most likely time. Let’s say you expect to have significant capital gains; charitable giving or tax-loss harvesting earlier in the year can help offset those tax liabilities.

Talk with your family about money. If your goal is to leave a legacy, you’ll want to discuss your values, philanthropy and creating a legacy with your family regularly, as well as stewarding wealth across generations. A habit of regular check-ins about finances will help establish a shared vision for both short-term and long-term goals.

Reference: Kiplinger (March 6, 2025) “10 Ways to Refine Your Financial Plan for a More Secure Future”