The holiday season is upon us, and for many families, that means increased spending on gifts, travel, and celebrations. Did you know Americans are expected to spend over $800 on gifts this year? While enjoying the holiday spirit is important, it’s also crucial to think about how this short-term spending fits into your long-term financial goals—especially when it comes to your estate plan. At Voorhees Law Group, we’re here to help you plan responsibly while still enjoying the festivities.
- Set a Holiday Budget to Protect Your Financial Future
Overspending during the holidays can be easy, but it’s essential to keep long-term financial security in mind. Before you start shopping, set a realistic holiday budget that aligns with your larger financial goals. Make sure that holiday expenses don’t interfere with your ability to maintain your estate plan, pay for long-term care, or invest in retirement.
If your holiday spending cuts into your ability to maintain the terms of your trust or insurance premiums, it could create complications down the road. Setting a budget helps ensure you’re balancing your short-term enjoyment with your long-term responsibilities.
- Give the Gift of Financial Security
Everyone loves to give gifts, but one of the most meaningful things you can give your family is financial security. Take the time to update your estate plan this holiday season. Make sure your will, trusts, and healthcare directives are up to date and accurately reflect your wishes. This gives your family peace of mind and prevents legal issues down the road.
Consider including long-term care planning in your estate discussions. Having a clear plan for healthcare expenses or caregiving responsibilities will ensure that your family isn’t burdened with tough decisions in a time of crisis.
- Charitable Giving: Incorporate Generosity into Your Estate Plan
The holiday season is the perfect time to think about charitable giving. If you’re planning to make donations, consider how they fit into your estate plan. Options like charitable remainder trusts or donor-advised funds allow you to support the causes you care about while also receiving tax benefits.
A charitable remainder trust provides you with income during your lifetime and then distributes the remaining assets to charity after you pass. Donor-advised funds allow you to contribute now and distribute those funds to different charities over time, which offers more flexibility.
- Annual Estate Plan Review
The end of the year is the perfect time to review your estate plan. Have there been any changes in your family structure or financial situation? Did you welcome new family members, or are you planning for long-term care? Now is the time to make sure your estate plan reflects any updates that have occurred over the past year.
At Voorhees Law Group, we’re here to help you balance your holiday spending with responsible estate planning. Request a consultation to make sure your estate plan is up to date.