Estate Planning Resolutions: 5 Steps to Secure Your Family’s Future

As the new year begins, it’s the perfect time to focus on safeguarding your family’s future. While many of us set resolutions like improving our health or finances, estate planning is an often-overlooked area that can provide long-term security and peace of mind for you and your loved ones.
Whether you’re creating a will for the first time or reviewing your current estate plan, these five estate planning resolutions will help you take control of your legacy in 2025.
1. Review and Update Your Will
Life changes, and so should your will. Significant events such as marriage, divorce, the birth of a child, or acquiring new assets can affect your estate plan. Start the year by reviewing your will to ensure it reflects your current wishes.
Key areas to focus on:
- Beneficiaries: Are the people named in your will still accurate? Have there been changes in your relationships or family structure?
- Assets: Have you acquired new property, investments, or other valuable assets that need to be included?
- Executors: Ensure the person you’ve appointed as your executor is still willing and able to fulfill this role.
If you haven’t created a will yet, make 2025 the year you take this critical step to protect your family.
2. Assign or Update Guardianship for Minor Children
If you have young children, one of the most important decisions you’ll make in your estate plan is assigning guardianship. This ensures that your children are cared for by someone you trust if the unthinkable happens.
- Appoint a Guardian: Choose someone who shares your values and has the capacity to care for your children.
- Name an Alternate Guardian: Have a backup plan in case your first choice is unable to serve.
- Communicate Your Decision: Discuss your choice with the potential guardian to ensure they’re willing and prepared for the responsibility.
Failing to name a guardian could leave this decision in the hands of the courts, which may not align with your wishes.
3. Review Beneficiary Designations
Many financial assets, such as life insurance policies, pensions, and retirement accounts, allow you to name beneficiaries directly. These designations often override your will, so it’s essential to review them regularly.
- Ensure Consistency: Verify that your beneficiary designations align with the provisions in your will.
- Account for Life Changes: Update beneficiaries after major life events like marriage, divorce, or the birth of a child.
- Consider Contingent Beneficiaries: Name secondary beneficiaries in case your primary beneficiary cannot inherit.
Taking this step prevents disputes and ensures your assets go to the right people.
4. Plan for Inheritance Tax
Inheritance tax can significantly reduce the value of your estate if not properly managed. Proactive tax planning can help minimize this burden on your beneficiaries.
- Understand Tax Thresholds: In the UK, estates over £325,000 may be subject to inheritance tax at 40%.
- Use Gifting Allowances: Take advantage of annual tax-free gift allowances to reduce the size of your taxable estate.
- Consider Trusts: Trusts can be an effective way to manage and protect assets for your beneficiaries while reducing tax liabilities.
- Seek Professional Advice: Work with an estate planning expert to explore options for minimizing inheritance tax.
Proper tax planning ensures more of your assets go to your loved ones, not the government.
5. Organize and Safeguard Your Estate Documents
Your estate plan is only effective if your loved ones can access it when needed. Make it a resolution to organize and securely store all related documents.
- Centralize Your Documents: Store your will, deeds, insurance policies, and financial records in one secure location.
- Inform Your Executor: Let your executor know where to find these documents and provide clear instructions for accessing them.
- Consider Digital Copies: Back up your estate plan digitally for added security and accessibility.
Keeping your documents in order prevents delays and confusion for your family during an already difficult time.
Final Thoughts
Estate planning is not a one-time task but an ongoing process that evolves with your life. By setting these resolutions and taking proactive steps, you can ensure your family’s future is secure and your wishes are respected.
If you’re ready to create or update your estate plan, contact Simply Wills for expert guidance tailored to your unique needs. Make 2025 the year you take control of your legacy!