Year-End Estate Planning: 5 Steps Before December 31
Year-End Estate Planning: 5 Steps Before December 31
As the year winds down, most people are thinking about holiday plans — not estate plans. But the weeks before December 31 are actually one of the best windows to make smart moves that protect your family and reduce your tax exposure. At Dickey Law Group, we encourage every client to treat year-end as a planning checkpoint.
Here are five steps you should take before the calendar flips.
1. Review and Update Your Will and Trust
Life changes fast. If you got married, had a child, lost a loved one, or bought property this year, your existing documents may no longer reflect your wishes. A will or revocable living trust that hasn't been updated in several years could distribute assets to the wrong people — or leave gaps that force your family into probate court.
Pull out your will and trust documents. Read them with fresh eyes. Ask yourself:
- Are the named beneficiaries still the people I want to receive my assets?
- Is my chosen executor or trustee still the right person for the job?
- Have I acquired new property or accounts that aren't covered?
If anything feels off, schedule a review with your attorney before the holidays.
2. Use Your Annual Gift Tax Exclusion
Every year, the IRS allows you to gift a certain amount per person without triggering gift tax or reducing your lifetime exemption. For 2026, the annual exclusion is $19,000 per recipient ($38,000 for married couples who elect gift-splitting). Under IRC § 2503(b), these gifts don't even need to be reported on a gift tax return as long as they stay within limits.
If you've been meaning to help a child with a down payment, fund a grandchild's education, or simply transfer wealth to the next generation — do it before December 31. Once the year ends, that exclusion is gone. You can't carry it over.
3. Make Charitable Contributions That Reduce Your Taxable Estate
Charitable giving isn't just generous — it's strategic. Donations made before year-end can reduce both your income tax liability and the size of your taxable estate. If you're over 70½, a Qualified Charitable Distribution (QCD) from your IRA lets you donate up to $105,000 directly to a charity without counting the distribution as taxable income.
For larger estates, consider establishing a donor-advised fund or a charitable remainder trust. These tools let you lock in a deduction now while distributing funds to your chosen charities over time.
4. Audit Your Beneficiary Designations
Beneficiary designations on life insurance policies, retirement accounts, and payable-on-death bank accounts override your will. That means if your ex-spouse is still listed as the beneficiary on your 401(k), they'll receive those funds — regardless of what your will says.
Year-end is the perfect time to log into every account and confirm:
- Each beneficiary is correct and current
- Contingent (backup) beneficiaries are named
- Designations align with your overall estate plan
This simple audit can prevent devastating surprises for your family.
5. Schedule a Planning Session for the New Year
Even if you don't make changes right now, booking a consultation for January puts you ahead of the curve. Tax laws shift, exemption amounts change, and your personal circumstances evolve. Starting the new year with a fresh review ensures your plan keeps pace.
At Dickey Law Group, our year-end consultations cover everything from trust funding to tax projections to guardianship updates. We'll make sure nothing falls through the cracks.
Don't Let the Year End Without a Plan
The deadline is real. Gifts not made, donations not completed, and documents not signed before December 31 can't be fixed retroactively. A few hours of planning now can save your family months of stress — and potentially thousands of dollars — later.
Contact Dickey Law Group today to schedule a consultation. We serve families throughout The Woodlands, Spring, Conroe, and the Houston metro area. Call (832) 521-4414.