As the start of a new year, January offers a fresh beginning, making it the ideal time to focus on long-term goals, including estate planning. For many people, the thought of creating an estate plan may seem overwhelming or unnecessary, especially when life feels busy or there are other financial priorities. However, starting your estate planning in January can set the foundation for a secure future for both you and your loved ones. Here’s why January is the perfect time to begin estate planning.
1. A Fresh Start for Your Financial Future
The beginning of a new year offers a clean slate, making it an excellent time to take stock of your financial and personal situation. Estate planning is not just about drafting a will; it’s about ensuring that your assets are protected, your healthcare decisions are in order, and your loved ones are cared for when you’re no longer able to make decisions. Starting your estate plan in January gives you the opportunity to evaluate your goals and priorities for the upcoming year and beyond.
Many people also make New Year’s resolutions to get their financial houses in order. Estate planning fits perfectly within these resolutions, allowing you to make meaningful progress in securing your legacy while giving you peace of mind.
2. Take Advantage of the Tax Year
One of the key elements of estate planning is minimizing taxes, both during your lifetime and upon your passing. January is a perfect time to start because it coincides with the beginning of the tax year. This allows you to evaluate your estate from a tax perspective and incorporate strategies such as gifting, creating trusts, or structuring your assets in a way that reduces your overall tax burden.
By starting early in the year, you also have ample time to maximize tax-saving opportunities for the year, such as contributing to tax-advantaged accounts or implementing a charitable giving strategy that aligns with your long-term goals.
3. Avoid the Holiday Rush and Stress
Estate planning requires time and thoughtfulness, which can feel like a challenge during the busy holiday season. January, on the other hand, is typically quieter, making it a more conducive time to focus on the details of your plan. Without the distractions of holiday celebrations or the pressures of year-end deadlines, you can take a calm, measured approach to developing your estate plan.
This more relaxed environment also allows you to work closely with your attorney to ensure that all aspects of your estate are addressed thoroughly, from wills and trusts to power of attorney and healthcare directives.
4. Reflect on Your Life’s Changes
The start of the year is often a time for reflection. It’s an opportunity to assess where you are in life and what you want for the future. For many, this involves considering life changes, such as the birth of a child, a recent marriage, the purchase of a home, or the retirement of a spouse. These milestones often prompt people to think about their estate planning needs.
In January, you can use this reflective time to identify any changes that may require updates to your current estate plan or to establish one for the first time. For example, if you’ve recently had a child, you’ll want to ensure that your will includes provisions for guardianship and financial support. Similarly, if you’ve gotten married, you’ll want to ensure that your spouse is properly included in your estate planning documents.
5. Set Long-Term Goals for Peace of Mind
Estate planning isn’t just about distributing assets; it’s about making sure your wishes are respected and your loved ones are taken care of. January is an ideal time to establish long-term goals for the future, whether it’s for your family, your business, or your charitable interests. Setting these goals in January ensures that you have a plan in place, no matter what the future holds.
Starting early also gives you the time to fine-tune your strategy. Estate planning isn’t a one-time event—it’s an ongoing process that can evolve as your life circumstances change. By beginning in January, you allow yourself the necessary time to review your plan periodically and make adjustments when necessary.
6. Benefit from Professional Guidance
Estate planning can be complex, with many factors to consider, from legal requirements to tax implications. By starting in January, you’ll have time to consult with a qualified estate planning attorney who can guide you through the process and answer your questions. Working with an experienced attorney ensures that your plan is legally sound and tailored to your specific needs.
At the beginning of the year, professionals like estate planning attorneys are often more available to meet with clients, making it easier to schedule consultations and begin the process of creating or updating your plan.
7. Ensure Your Family is Prepared
No one can predict the future, but by creating an estate plan, you ensure that your loved ones are prepared for whatever may come. This peace of mind is invaluable, as it prevents confusion and potential disputes during difficult times. Starting your estate plan in January can help ensure that your family has the tools and resources they need to carry out your wishes without stress or delay.
Start Your Estate Planning Journey Today
January is the perfect time to start your estate planning. Taking this proactive step early in the year will ensure that your loved ones are cared for, your assets are protected, and your wishes are honored in the future.
At Borakove Osman LLC, we are here to help you navigate the estate planning process with ease. Whether you’re starting from scratch or updating an existing plan, our experienced attorneys will work closely with you to create a comprehensive plan that fits your unique needs. Contact us today to schedule a consultation and start the new year with the peace of mind that comes from having a well-thought-out estate plan in place.
Borakove Osman LLC is your trusted partner for estate planning for young families in Wisconsin. Serving all of Wisconsin, including Madison and Dane County, we are dedicated to providing high-quality legal advice and representation to help you secure your family’s future.