Year-End Estate Planning Checklist for Kentucky Residents

The end of the year is an ideal time to review your estate plan. Tax laws change, family circumstances shift, and documents that were current five years ago may no longer reflect your wishes. Whether you have a comprehensive estate plan or have been putting it off entirely, this checklist will help Kentucky residents make sure their affairs are in order before the new year.

Review Your Will

If you have a will, pull it out and read it. Ask yourself whether the people you named as executor and guardian for minor children are still the right choices, whether the beneficiaries listed still reflect your wishes, whether any beneficiaries have died, become estranged, or have new circumstances (such as a disability or divorce) that should be reflected, and whether the will accounts for any significant assets you have acquired since it was last updated. If your will is more than five years old, or if you have experienced a major life event (marriage, divorce, birth of a child or grandchild, death of a beneficiary, significant change in assets), it is time for an update. Under KRS 394.040, a valid Kentucky will requires the testator’s signature and two witnesses.

Review Beneficiary Designations

Beneficiary designations on life insurance policies, retirement accounts (401(k), IRA), payable-on-death bank accounts, and transfer-on-death investment accounts pass outside of your will. These designations override whatever your will says. Check every account to make sure the named beneficiaries are current. Pay particular attention to accounts that may still name an ex-spouse — while KRS 394.094 revokes certain beneficiary designations upon divorce, this statute does not cover all account types, and federal law (ERISA) may preempt state law for employer-sponsored retirement plans.

Review Your Powers of Attorney

A durable power of attorney allows someone you trust to manage your financial affairs if you become incapacitated. A healthcare surrogate designation (often combined with a living will or advance directive) allows someone to make medical decisions on your behalf. Under KRS 386A.010 through KRS 386A.260, a durable power of attorney remains effective even after you lose capacity — which is precisely when you need it most. If you do not have these documents, get them. If you do have them, confirm that the agents you named are still available and willing to serve.

Consider Whether a Trust Is Appropriate

Trusts are not just for the wealthy. A revocable living trust can help you avoid probate, maintain privacy, and provide a seamless transition of asset management if you become incapacitated. If your estate includes real property in multiple states, a trust can avoid the need for ancillary probate in each state. If you have a blended family, a trust can protect both your spouse and your children. Review whether a trust makes sense for your situation.

Review Your Life Insurance

Is your life insurance coverage adequate? If you have taken on new financial obligations (a mortgage, a business loan, children’s education expenses), your coverage needs may have increased. Conversely, if your children are grown and your mortgage is paid off, you may be over-insured and paying unnecessary premiums. Review both the coverage amount and the beneficiary designations.

Organize Your Records

Your executor will need to locate your will, trust documents, insurance policies, financial accounts, real estate deeds, and digital accounts. Create a master document listing these items and their locations. Include login credentials for online accounts (or use a password manager and give your executor access instructions). Store this document securely and tell your executor and a trusted family member where to find it.

Consider Tax Planning Opportunities

Year-end is the time for tax-sensitive estate planning moves. Annual gift tax exclusion gifts (”for 2025, up to $19,000 per recipient”) can reduce the size of your taxable estate. Charitable contributions can provide current income tax deductions while furthering your philanthropic goals. If you hold appreciated assets, consider whether gifting them (rather than cash) produces a better tax result. Consult with your tax advisor before year-end to take advantage of opportunities that expire on December 31.

If you need help reviewing or creating an estate plan in Kentucky, contact Buckles Law Office at (859) 225-9540.