Start the Year Right: Estate Planning & Business Resolutions for 2025

1. Reviewing & Updating Your Estate Plan

Many people assume that once they’ve created an estate plan, they don’t need to think about it again. However, life changes quickly, and an outdated estate plan can create unnecessary complications for your family and loved ones.

When Should You Update Your Estate Plan?

It’s important to review your estate plan at least once a year, or whenever you experience a significant life event, such as:

• Marriage, divorce, or the birth of a child
• A major financial change, like purchasing a home or starting a business
• The passing of a beneficiary or executor
• Relocation to a different state, as estate planning laws vary by location
• A change in your wishes regarding asset distribution or guardianship

What Should You Review?

• Your Will & Trusts: Ensure your assets are distributed according to your current wishes.
• Beneficiary Designations: Update life insurance, retirement accounts, and investment accounts.
• Powers of Attorney & Healthcare Proxies: Confirm the right people are designated to make medical and financial decisions if you become incapacitated.
• Real Estate & Business Interests: Make sure they are properly structured within your estate plan to avoid probate and maximize tax benefits.

Taking the time to review and update your estate plan now can prevent stress, confusion, and legal issues down the road.

2. Setting Up or Restructuring a Business for Tax & Liability Protection

If you own a business or are thinking about starting one in 2025, now is the perfect time to evaluate your business structure to maximize protection and financial benefits.

Are You Using the Right Business Structure?

• Your business entity determines your tax obligations, liability protection, and overall financial efficiency. Consider whether a:
• Sole Proprietorship is still working for you, or if an LLC or corporation would offer more protection
• LLC (Limited Liability Company) would better separate your personal and business assets to protect against lawsuits
• S Corporation or C Corporation could provide better tax benefits as your business grows
• Partnership Agreement needs updating if you have multiple owners

Why Does Business Structure Matter?

• Liability Protection: The right entity protects your personal assets from business debts and lawsuits.
• Tax Benefits: Certain structures allow for deductions, lower tax rates, or pass-through taxation.
• Growth & Succession Planning: A well-structured business makes it easier to transfer ownership in the future.

If you’re unsure whether your business is structured properly, now is the time to consult an attorney and an accountant to ensure your setup aligns with your financial and legal goals.

3. Reviewing Property Ownership & Refinancing Real Estate

For homeowners, real estate investors, and business owners, real estate is often one of the biggest financial assets. The start of the year is an ideal time to:
🏡 Review how your real estate is owned and whether changes should be made
💰 Consider refinancing your mortgage for better rates or financial flexibility
📜 Ensure real estate is integrated into your estate plan properly

Should You Transfer Real Estate Into a Trust or LLC?

• Primary Residences: Placing a home in a revocable living trust can help avoid probate.
• Investment Properties: Transferring rental or commercial properties into an LLC can provide liability protection and simplify ownership transitions.
• Multiple Owners: If you co-own property with family or business partners, reviewing your ownership agreements is crucial to avoid future disputes.

Refinancing Considerations

Interest rates and loan terms change, and refinancing might help you:

• Lower your mortgage rate and reduce monthly payments
• Access home equity for other investments
• Adjust your loan term to better align with your financial goals

A quick legal review can ensure that your property ownership structure supports your long-term financial security.

Start the Year Off Strong

Taking a proactive approach to your estate plan, business structure, and real estate holdings will give you peace of mind and financial security in 2025. Whether you need to update documents, form a new business, or protect your real estate investments, Pelletier Law is here to help.