End-of-Year Planning: Why Reviewing Your Estate Plan & Business Compliance is Essential

End-of-Year Planning: Why Reviewing Your Estate Plan & Business Compliance is Essential

As the year winds down, it’s time to focus on critical tasks that often get pushed aside during the hustle of daily life. Whether you’re an individual securing your family’s future or a business owner managing growth, end-of-year planning is essential to ensure everything is in order for a fresh start in the new year.

Two crucial areas to prioritize are:

1. Estate Planning: Securing Your Legacy

The end of the year is a perfect time to review your estate plan and ensure it reflects your current goals and family situation. Changes like marriage, divorce, the birth of a child, or the loss of a loved one may require updates to your estate documents. Here’s what you should review:

• Last Will and Testament: Ensure it accurately reflects your wishes. Are the beneficiaries and executors up to date? Learn more about why a will is essential for estate planning.
• Trusts: If you have a trust, ensure it aligns with your current financial and personal goals.
• Healthcare Directives and Powers of Attorney: Make sure your healthcare proxy and financial power of attorney are current. Get more details on how healthcare directives protect your future.
• Beneficiary Designations: Double-check beneficiaries on retirement accounts, life insurance policies, and financial assets, as these designations override what’s written in your will.

Updating your estate plan ensures your wishes are honored and minimizes potential disputes or confusion for loved ones.

2. Business Compliance: The Beneficial Ownership Information (BOI) Report

If you own an LLC, corporation, or other business entity, you have new compliance obligations this year. Beginning January 1, 2024, the Corporate Transparency Act (CTA) requires most small businesses to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). This requirement is part of a federal effort to increase transparency and combat financial crimes.

Here’s what you need to know:

• Who Needs to File? Most LLCs, corporations, and similar entities are required to file. Exceptions include large companies with more than 20 full-time employees and $5M+ in revenue.
• What Information is Required? You’ll need to report the name, address, date of birth, and government-issued ID (like a driver’s license) for each beneficial owner and company applicant. Learn more about the BOI report filing process and the information required.
• Deadline: For entities created before January 1, 2024, the filing deadline is January 1, 2025. For those created on or after January 1, 2024, you must file within 30 days of formation.
• Penalties for Noncompliance: Failing to file or providing false information can result in fines and penalties.

If you haven’t addressed your BOI Report requirements, now is the time to act. Consulting with an attorney or tax advisor can help you navigate this process smoothly.

A Combined Effort for Peace of Mind

Estate planning and business compliance go hand in hand. If your business is part of your estate, ensuring compliance with laws like the CTA protects its value for your heirs. Addressing these areas now can help you avoid headaches and potential legal issues later.

Don’t let the year slip away without taking stock of your estate and business plans. At Mid-America Law Practice, LLC, we specialize in helping families and business owners navigate these essential tasks.

📞 Call us at 314-818-8807
📧 Email us at info@midamericalaw.com
📅 Schedule a 15-minute complimentary estate planning consultation today!