The final months of the year bring a natural deadline energy to financial planning — and estate planning is no exception. There are actions that must be taken by December 31 to be effective for the current year, and there are structural reviews that are most naturally done before the calendar resets.
Here is a practical checklist of the year-end estate planning priorities we walk through with our clients each fall.
1. Complete Your Annual Gifting
The $19,000 annual gift tax exclusion expires on December 31. If you have not made your annual gifts — to children, grandchildren, or irrevocable trusts — they must be completed before year-end to count for the current year. There is no carryover.
For couples who want to take advantage of the $38,000 per-recipient limit through gift-splitting, your CPA will need to file a Form 709 gift tax return reflecting the election, even if no tax is owed.
If you make gifts to an irrevocable trust, your trustee must issue Crummey letters to the trust beneficiaries within a reasonable time after the gift. Crummey letters are the mechanism that qualifies the gift for the annual exclusion — without them, the gift may not qualify. Verify with your attorney that this process is being handled correctly.
2. Review Beneficiary Designations
Year-end is an appropriate time to confirm that your beneficiary designations are current on all retirement accounts (IRAs, 401(k)s, 403(b)s), life insurance policies, and annuities. Pull the actual forms, not just your memory of what you think you designated.
Look for: former spouses, deceased individuals, outdated trust names, and designations that are inconsistent with your current estate plan.
3. Verify Crummey Letters
f you have irrevocable trusts — such as an ILIT, SLAT, or dynasty trust — confirm that the trust’s withdrawal provisions are being properly administered whenever gifts are made. Trustees should provide beneficiaries with timely Crummey notices explaining their withdrawal rights and retain documentation in the trust’s records. Proper administration and documentation help support annual exclusion treatment for these gifts.
4. Review Your Charitable Giving
Year-end is also the deadline for charitable contributions that generate a current-year income tax deduction. If you intend to fund a donor-advised fund, contribute appreciated securities to a charity, or make year-end charitable gifts, those contributions must be completed by December 31.
If your DAF balance is higher than needed for the year’s grantmaking, consider whether year-end is a good time to make additional grants to organizations you care about.
5. Assess Life Insurance Coverage and Structure
Before year-end, revisit your life insurance policies. Has your estate grown significantly this year? Has a policy lapsed or underperformed its illustrations? Is an ILIT properly funded to pay next year’s premiums through annual exclusion gifts?
If changes are needed — new coverage, revised ownership, updated beneficiary designations — the earlier you initiate those conversations, the better. Life insurance changes take time.
6. Check for Law Changes
Federal and state tax laws can change, and year-end is a natural time to confirm whether any legislative developments affect your planning. Your CPA, estate attorney, and financial advisor should all be part of this conversation. 2026 brings an important change to federal estate planning. Legislation enacted in July 2025 increased the federal estate and gift tax exemption to $15 million per individual for 2026, with future inflation adjustments beginning in 2027. While this provides greater flexibility for many families, estate plans should still be reviewed to account for changing asset values, state estate tax laws, and individual family circumstances. Your CPA, estate attorney, and financial advisor should work together to determine whether any adjustments are appropriate.
7. Schedule Your Next-Year Planning Review
The best year-end action you can take is committing to a formal planning review in the first quarter of the new year. Schedule it now, before calendars fill up. An annual review with your full planning team — estate attorney, CPA, and financial advisor together — ensures that your plan stays current and that no opportunity falls through the cracks.
The Cost of Waiting Until December 31
Many of these tasks require coordination between multiple professionals and can take time to execute properly. Crummey letters need to be drafted and delivered. Gift transfers need to be processed. Charitable contribution documentation needs to be obtained. Waiting until the last week of December creates unnecessary pressure and risk.
Start the year-end process in October, and finish it with time to spare.
Vertex Planning Partners walks clients through a formal year-end estate planning review each fall. If you would like to ensure nothing is missed this year, contact us at vertexpartners.com to schedule your year-end planning session.