Essential Estate Plan Considerations for 2025

Be Careful Relying on Life Insurance to Provide for Loved Ones

Since life insurance offers quick liquidity, it’s often used as a valuable tool in many estate plans. However, relying on life insurance exclusively instead of as part of a broader estate plan tends to leave gaps. For example:

• Complications for Minor or Special Needs Beneficiaries: Proceeds left directly to minors or individuals with special needs often require court intervention, delaying access to funds and complicating their use. Establishing a trust—such as a special needs trust—ensures funds are managed responsibly and without jeopardizing government benefits.
• Limited Scope for Long-Term Goals: Life insurance provides a safety net. Although, it may not cover long-term needs like estate taxes, education, or spousal support. Weaving it into a comprehensive estate plan creates a stronger strategy that supports your family’s current and future financial security.

In regards to life insurance policies, it’s also key to remember that they might hide critical details in the fine print. Unfortunately, a simple lapse in coverage, a small oversight on an application, or adventurous hobbies like scuba diving, mountaineering, or even surfing could jeopardize a claim when it’s needed most.

Craft An Estate Plan That Covers Every Angle—Not Just Financials

Remember this year that estate planning isn’t just about passing down wealth. It’s about providing security during life’s unpredictable moments. For example, naming a trusted guardian for your children makes certain that they’re cared for according to your wishes. Similarly, creating healthcare directives lets your loved ones know exactly how to act if you’re unable to make decisions yourself. These thoughtful steps bring peace of mind and protect the people who matter most.

Additional Estate Planning Tips for the New Year

• Update Your Will: Review and revise your will to reflect changes in your life or the law.
• Organize Important Documents: Compile deeds, account statements, and insurance policies in a safe and accessible spot.
• Reassess Your Retirement Accounts: Check contribution levels, beneficiaries, and overall strategies to confirm your retirement plans align with your goals.
• Plan for Digital Assets: Address digital accounts (social media profiles, cryptocurrency, online subscriptions) by designating a digital executor or providing access instructions.
• Evaluate Estate Tax Implications: Assess your estate’s potential tax liabilities, then explore strategies to minimize them (gifting or donating).
• Discuss Your Plan: Communicate with your family openly to prevent misunderstandings and clarify your intentions.

With Law Stein Anderson by your side this year, you can turn intentions into action by creating a plan that secures your family’s future. Our expert attorneys are here to help you review essential estate plan considerations that cover every angle—from financial security to family care. Contact us today to take the first step toward a thoughtful, comprehensive plan in 2025.