2025 Year‑End Estate Planning Checklist: Actions to Consider Before December 31

Why a 2025 year‑end estate planning checklist matters

Every December brings a flurry of gift giving, charitable donations, and last‑minute financial tasks. But this year’s landscape is especially complex. By the end of 2025, Congress has enacted a major overhaul of the estate tax system, raising the lifetime exemption to a record level and introducing new charitable deduction limits. Retirement account rules have continued to evolve, and a federal transparency law now requires many family‑owned companies to report their owners to the government. All of these changes make a 2025 year‑end estate planning checklist essential. Taking proactive steps now can help ensure that your plan remains effective and tax efficient when the calendar flips to 2026.

The purpose of a year‑end review is not to rewrite your entire estate plan each December; rather, it is to make sure that your existing documents align with current law and your personal circumstances. It also gives you the chance to take advantage of annual exclusions and tax‑favored strategies that expire on December 31. Whether you have a comprehensive estate plan in place or you have been meaning to get started, December is the ideal time to focus on estate planning while there is still time to act.

Review and update your documents

The foundation of any estate plan is a suite of documents: a will, one or more trusts, powers of attorney for financial and health care decisions, and advance medical directives. As the year comes to a close, review these documents with fresh eyes. Have you named the right people to carry out your wishes? Are your children now adults or have your relationships changed? Do your documents reference outdated estate tax exemption amounts or formulas that could cause unintended bequests under the new law?

The 2025 year‑end estate planning checklist is a reminder to verify that your will appoints an executor who is still willing and able to serve. If your plan uses a revocable trust to avoid probate, confirm that your assets are properly titled in the trust’s name and that your successor trustee knows their responsibilities. For married couples, ensure that your plan takes advantage of portability (the ability to use a deceased spouse’s unused exemption) and coordinates with the new permanent lifetime exemption. Do not overlook incapacity planning: durable powers of attorney and health care proxies should be updated if your agents have relocated or if state law has changed.

Maximize annual gifts and charitable contributions

One of the most powerful yet simple tools in estate planning is the annual gift tax exclusion. In 2025 the exclusion amount increases to $19,000 per recipient, meaning you can give up to $19,000 to as many individuals as you wish without using any of your lifetime estate tax exemption. For married couples, combining exclusions allows up to $38,000 per recipient. Making these gifts before year‑end removes future appreciation from your estate and can help younger family members pay for education or housing. But unused exclusions do not carry over, so December is your last chance to use the 2025 amount.

Charitable giving has new wrinkles under the One Big Beautiful Bill Act. Beginning in 2026, itemized deductions for charitable contributions will only be allowed for the amount of gifts that exceed 0.5 percent of adjusted gross income, and non‑itemizers will be limited to a $1,000 (individuals) or $2,000 (joint filers) deduction. If charitable causes are part of your legacy, consider accelerating donations into 2025 to maximize current law. Bunching several years’ worth of giving into a single year or funding a donor‑advised fund allows you to claim a larger deduction now and then recommend grants over time. Qualified charitable distributions (QCDs) from IRAs can also satisfy required minimum distributions and reduce taxable income if you are aged 70½ or older.

Understand new RMD and retirement account rules

Retirement accounts often represent a significant portion of your wealth and require special attention at year‑end. The SECURE Act 2.0 continued to tweak rules about required minimum distributions, moving the required beginning age to 73 and creating new catch‑up contribution limits. Most non‑spouse beneficiaries now fall under a 10‑year payout rule, and as of 2025 the IRS has clarified that annual distributions are required when the original owner had begun RMDs. If you inherited an IRA or 401(k), confirm with your advisor whether you need to take a distribution this year to avoid penalties.

For account owners, the year‑end is an opportunity to evaluate Roth conversions. Converting some of your traditional IRA to a Roth before December 31 can lock in current tax rates and create future tax‑free assets for your heirs. The 2025 year‑end estate planning checklist also includes checking beneficiary designations on retirement accounts and life insurance policies. Beneficiary forms override your will or trust, so make sure they reflect your current intentions and that they designate contingent beneficiaries in case a primary beneficiary predeceases you.

Address digital assets and transparency obligations

Increasingly, estate plans must deal with digital assets—everything from photos stored in the cloud to cryptocurrency wallets and online subscriptions. Take time this December to inventory your digital accounts and ensure that a trusted person knows how to access them. Many platforms offer legacy contact or inactive account manager options; selecting those contacts now can prevent the loss of valuable data later. If you own cryptocurrency, compile instructions and private keys, and consider placing them in a secure vault or with a trusted fiduciary.

If you own a family limited liability company or other closely held entity, you should be aware of the Corporate Transparency Act. The law requires most domestic and foreign business entities to file a beneficial ownership information report with the Financial Crimes Enforcement Network. Existing companies formed before January 1, 2025, must file by January 1, 2026, while new entities have 30 days to comply. Failing to file can result in substantial fines. As part of your 2025 year‑end estate planning checklist, consult your attorney to determine whether your entity must file and gather the information needed: names, addresses, birth dates and identification numbers of owners and control persons.

Evaluate long‑term care and insurance needs

The end of the year is a good time to review insurance policies and ensure adequate coverage. Evaluate life insurance, disability insurance and long‑term care insurance in light of your estate plan. Rising health care costs and longer life expectancies mean that long‑term care expenses can erode an inheritance if not planned for. Some families establish irrevocable Medicaid asset protection trusts, which require transferring assets at least five years (or longer in some states) before applying for Medicaid. If you are contemplating such planning, 2025 may be a good time to start.

Finish with a family conversation

Estate planning is not only about documents and tax strategies. It is also about relationships. Before the year ends, schedule a conversation with your loved ones to discuss your plans and wishes. Let your chosen fiduciaries know where to find your documents and digital access information. Discuss your goals with your beneficiaries, especially if your plan includes charitable intentions or if you have established trusts for their benefit. Clear communication can prevent misunderstandings and reduce conflict after you are gone.

Conclusion

This 2025 year‑end estate planning checklist is designed to ensure that your estate plan remains robust in the face of legislative changes and personal milestones. Reviewing documents, maximizing annual gifts, leveraging charitable giving strategies, staying current on retirement account rules, addressing digital assets and transparency obligations, assessing insurance needs and communicating with family—all of these steps help maintain control over your legacy. As December approaches, take time to consult your attorney, accountant and financial advisor to confirm which of these actions apply to your situation. By acting before December 31, you position yourself and your loved ones for a secure and orderly transition in the years ahead.