Year-End Estate Planning Checklist: What to Review as You Prepare for the New Year

Guidance from a Birmingham, Alabama estate planning attorney.

As you prepare for the New Year, it is natural to reflect on your priorities, set fresh goals, and get organized for what lies ahead. One important task that often gets pushed aside is reviewing your estate plan. Unfortunately, outdated or incomplete documents can leave loved ones with confusion, court involvement, and unnecessary stress.

The start of a new year is an ideal opportunity to ensure your estate plan still reflects your wishes—and to put one in place if you have not done so yet. Below is a practical estate planning checklist to guide your review as you enter the New Year with clarity and confidence.

1. Inventory Your Assets and Liabilities

A solid estate plan begins with a clear understanding of what you own, what you owe, and to whom those obligations are owed.

List all assets, including:

• Real estate

• Bank and investment accounts

• Retirement accounts

• Cryptocurrency

• Businesses

• Personal property such as automobiles, boats, airplanes, jewelry, artwork, heirlooms, and antiques

  
  

Assign an approximate value to each item.

List all liabilities, including:

• Mortgages

• Personal loans

• Credit card debt

  
  

Estimate the amount owed for each.

Once complete, calculate your net estate value by subtracting your liabilities from your assets. This information helps determine what planning tools may be appropriate.

2. Define Your Estate Planning Goals

Estate planning is about ensuring your wishes will be followed.

Consider the following:

• Who are your beneficiaries (individuals, charities, or both)?

• How and when should assets be distributed?

  • Special planning for minor children or individuals with special needs

  • Holding assets in trust until a certain age or milestone

• Is asset protection important for your beneficiaries?

• Who should serve as a guardian for minor children?

• Do you want to avoid probate? If so, why (privacy, cost, delay)?

• Who should make financial and medical decisions if you become incapacitated?

  
  

If you own a business, business succession planning is critical:

• What happens if you are unable to run the business?

• What happens if you pass away?

  
  

3. Work With an Attorney to Draft or Update Key Documents

A complete estate plan typically includes several core documents:

Last Will and Testament

• Appoints a personal representative (executor)

• Specifies who inherits assets and in what proportions

• Names guardians for minor children (A Declaration Nominating Preneed Guardian of Person and Property of Minor Child(ren) is used in Florida)

  
  

Revocable Living Trust (if appropriate)

• Avoids probate and maintains privacy

• Allows management of assets during incapacity

• Provides customized distribution instructions

  
  

Durable Power of Attorney

• Appoints someone to manage financial matters if you are incapacitated

  
  

Advance Directive for Healthcare, including:

• Living Will – outlines medical wishes and life-sustaining preferences

• Healthcare Power of Attorney – names someone to make medical decisions on your behalf.

  
  

HIPAA Authorization

• Allows your chosen decision-makers to access your healthcare information so they can make informed choices if you cannot speak for yourself.

  
  

Outdated documents can be just as harmful as no documents at all, so regular review is essential.

4. Review Beneficiary and Payable-On-Death Designations

Beneficiary designations override your will, making them one of the most common sources of unintended results.

Review and update:

• Life insurance policies

• Retirement accounts

• Checking and savings accounts

• Money market accounts

  
  

Life events such as marriage, divorce, births, or deaths should always trigger a review.

5. Review How Your Accounts and Property Are Titled

Just like beneficiary designations, the way your accounts and property are titled determines who will receive them when you pass away. If an account or piece of property is jointly owned with rights of survivorship, the surviving owner will automatically become the sole owner at your death—regardless of what your will says.

Be sure to review the ownership of:

• Bank accounts

• Investment accounts

• Deeds to real property

• Titles to automobiles, boats, and airplanes

  
  

If you are considering adding a family member to a bank account to help pay bills, think carefully before doing so. In many cases, using a durable power of attorney is a better solution. It allows your chosen agent to manage the account on your behalf without unintentionally giving that person full ownership of the account at your passing. This also preserves your ability to designate multiple beneficiaries.

6. Evaluate Life Insurance Needs

Life insurance is often a key piece of an estate plan.

Work with a financial advisor to determine:

• Whether life insurance is necessary

• The appropriate type and amount of coverage

  
  

Confirm that your beneficiary designations align with your overall plan.

7. Incorporate Tax Planning

Estate planning is not tax planning—but taxes cannot be ignored.

With your attorney and accountant, consider:

• Potential state and federal estate tax exposure

• Strategies to minimize taxes, such as:

  • Annual gift tax exclusions

  • Charitable giving strategies

    
    

8. Document Key Information for Trusted Individuals

Your plan only works if the right people have the right information.

Provide guidance to your:

• Personal representative

• Trustee

• Financial power of attorney

• Healthcare agent

  
  

Consider using an organizational tool—like our Family Blueprint—to document:

• Important contacts

• Account information

• Instructions for managing your affairs

  
  

Make sure trusted individuals know how to access this information when needed.

9. Review Your Digital Assets and Online Accounts

In today’s world, your estate plan should include more than physical property and financial accounts. Your digital life also needs to be protected and accessible.

Consider documenting:

• Email accounts

• Social media accounts

• Online banking and investment logins

• Cloud storage

• Cryptocurrency wallets and keys

• Subscription services

• Important digital files or photos

  
  

Decide who should have access and include instructions for managing, closing, or transferring these accounts where appropriate. Some platforms allow you to name a legacy contact or authorized user—take advantage of these tools where available.

10. Safely Store Your Estate Planning Documents

Improper storage can derail even the best plan.

Best practices include:

• Keeping originals in a secure, fire-resistant location

• Ensuring your personal representative knows where your original will is stored

• Providing copies to your personal representative, trustees, and agents

  
  

11. Communicate Your Plan

Estate planning is not just paperwork—it is communication.

Discuss your plan with:

• Family members

• Your personal representative, trustee, and agents

  
  

Clear communication can greatly reduce confusion, disputes, and hurt feelings later.

12. Review and Update Your Estate Plan Regularly

Estate planning is not a “one and done” project.

Revisit your plan every few years or after major life changes such as:

• Marriage or divorce

• Births or deaths

• Significant financial changes

• Moving to a different state

  
  

Your Next Step

If your review reveals gaps—or if you are ready to get started—our office is here to help ensure your estate plan reflects your wishes and protects what matters most. When you are ready, we would be honored to walk with you through each step of building or updating your estate plan.

About the Author

Colin McMichen is an experienced attorney and the founder of Provident Law / Estate Planning LLC, a Birmingham, Alabama-based firm. With a focus on estate planning and probate law, Colin is dedicated to helping individuals and families in Alabama and Florida navigate complex legal matters with confidence.