Erin L. Nunes, Esq.
Managing Partner at Surprenant, Beneski & Nunes, P.C.
As an attorney specializing in estate planning and elder law, I’m here to help you navigate the important steps to protect yourself and your loved ones in 2025. Think of this as your personal roadmap to peace of mind, not a complicated legal lecture!
Your 2025 Action Plan for Peace of Mind: A Step-by-Step Guide
Life changes, and so should your plan. 2025 is the perfect time to get your affairs in order or give your existing plan a fresh look. We’ll cover everything from who makes decisions for you to what happens with your social media accounts.
Why is this important?
Without a clear plan, the government might decide who gets your assets, who raises your children, and who makes critical medical decisions if you can’t. This can lead to stress, delays, and unexpected costs for your family. By planning ahead, you ensure your wishes are honored, your loved ones are protected, and your legacy is preserved.
Step 1: Take Stock of Your “Stuff” (and Your Digital Life!)
This isn’t just about what’s in your bank account; it’s about everything you own and everything you access online.
- Physical Assets:
- Homes and Property: Your primary residence, vacation homes, rental properties, land.
- Financial Accounts: Savings, checking, investment accounts (stocks, bonds, mutual funds), retirement accounts (401(k)s, IRAs).
- Valuables: Jewelry, vehicles, art, collectibles, family heirlooms.
- Life Insurance: Policies you own.
- Business Interests: If you own a business, it’s crucial to include it.
- Digital Assets: The New Frontier!
- What are they? Think of anything that lives online or on your devices that has value or sentimental importance. This includes:
- Email Accounts: Gmail, Outlook, Yahoo, etc. – these often hold important communications and access to other accounts.
- Social Media: Facebook, Instagram, LinkedIn, TikTok, etc. – what do you want to happen to your profiles? Memorialized? Deleted?
- Online Banking & Financial Accounts: PayPal, Venmo, cryptocurrency wallets, online investment platforms. Crucially, while the money is physical, access is digital!
- Cloud Storage: Google Drive, Dropbox, iCloud – where are your photos, videos, and important documents stored?
- Subscription Services: Netflix, Spotify, Amazon Prime – do you want these canceled or transferred?
- Websites & Blogs: If you own a domain or have a personal blog.
- Loyalty Programs: Airline miles, hotel points, credit card rewards.
- Digital Intellectual Property: E-books, music, software licenses, online businesses.
- Why are they important? Your digital life holds both financial value and sentimental memories. Without a plan, your loved ones might not be able to access cherished photos, manage online bills, or even close accounts, leading to frustration and potential loss.
Action Item for 2025:
- Create a detailed list of all your assets, both physical and digital. For digital assets, include the platform (e.g., Gmail, Facebook), the type of account, and ideally, where you’ve securely stored login information (see Step 3).
Step 2: Who’s in Charge? Picking Your “Go-To” People
This is about choosing trustworthy individuals to handle your affairs when you can’t, whether due to incapacity or after you’re gone.
- For Financial Decisions (If You Can’t Act): Durable Power of Attorney
- This document lets you name someone (your “Agent”) to manage your finances, pay bills, and make financial decisions if you become unable to do so. This person steps in while you’re still alive.
- For Healthcare Decisions (If You Can’t Speak for Yourself): Healthcare Proxy & Advance Directive
- Your Healthcare Proxy names someone to make medical decisions for you if you’re unable to communicate them.
- An Advance Directive (also called a Living Will) specifies your wishes regarding end-of-life care, such as whether you want certain medical treatments.
- For Your Estate (After You’re Gone): Personal Representative (Executor) & Trustee
- Your Personal Representative (formerly Executor) is named in your Will and is responsible for gathering assets you own individually when you die, paying any debts, and distributing your property according to your wishes.
- If you set up a Trust, you’ll name a Trustee to manage the assets held in the trust for the benefit of your chosen beneficiaries. Trusts can help avoid probate (the public court process), maintain privacy, and potentially offer tax benefits.
- For Your Digital Life: Digital PR/Fiduciary
- This is a relatively new but critical role! You’ll designate someone specifically to manage your digital assets. This person should be tech-savvy and someone you trust to handle your online presence according to your wishes (e.g., memorializing a social media page, closing an old email account, or transferring cryptocurrency).
Action Item for 2025:
- Identify primary and backup individuals for each of these roles. Think about their reliability, responsibility, and ability to handle the tasks, including their comfort level with technology for your digital assets.
- Discuss these roles with the people you choose to ensure they are willing and understand your wishes.
Step 3: Put It On Paper! Essential Legal Documents
These are the core documents that make your wishes legally binding.
- Last Will and Testament:
- This document spells out who receives your assets after you pass away. It also allows you to name guardians for minor children and officially appoint your Personal Representative.
- Trusts (Revocable Living Trust, Irrevocable Trust, etc.):
- Trusts are powerful tools that can help your assets bypass probate, provide privacy, and offer more control over how and when your beneficiaries receive assets. They can also be crucial for asset protection and Medicaid planning.
- Durable Power of Attorney:
- As discussed in Step 2, DPOAs are vital for managing your legal and financial affairs during your lifetime, especially if you become incapacitated.
- Advance Directive/ Living Will:
- Clearly state your medical treatment preferences.
- Digital Asset Instructions (Separate Document!):
- DO NOT put passwords directly in your Will! Your Will becomes a public document. Instead, create a separate, securely stored document (or use a secure password manager) that lists all your digital assets, usernames, and passwords (or clear instructions on how to access them). This document should be kept in a secure location and only accessed by your designated Digital Executor.
- Include instructions for each digital account: Do you want your social media accounts memorialized, deleted, or do you want content downloaded? Do you want specific files saved from cloud storage?
Action Item for 2025:
- If you don’t have these documents, make it a priority to work with an estate planning attorney to draft them.
- If you have them, review them! Have your family dynamics changed? Have you acquired new assets (especially digital ones)? Do your chosen “go-to” people still make sense?
- Start compiling your Digital Asset Instructions. This is an ongoing process, as your online life evolves.
Step 4: Review Beneficiary Designations
Many assets pass directly to named beneficiaries, overriding your Will.
- Examples: Life insurance policies, retirement accounts (401(k)s, IRAs), bank accounts with “Payable on Death” (POD) designations, and investment accounts with “Transfer on Death” (TOD) designations.
- Why it matters: If your Will says your sister gets everything, but your ex-spouse is still listed as the beneficiary on your life insurance policy, your ex-spouse will receive those funds.
Action Item for 2025:
- Contact all your financial institutions and insurance providers to confirm your beneficiary designations are up-to-date and align with your overall estate plan.
Step 5: Consider Elder Law Specifics (Planning for Long-Term Care)
Elder law focuses on the unique needs of older adults, including long-term care planning, asset protection, and navigating government benefits.
- Medicaid Planning: As long-term care costs rise, understanding how to qualify for Medicaid (a government program that can help pay for nursing home or in-home care) while protecting your assets is crucial. This often involves specific types of trusts and gifting strategies.
- Asset Protection: Strategies to protect your wealth from future long-term care costs or unexpected events.
- Guardianship Alternatives: Explore less restrictive ways to support decision-making for a loved one, like supported decision-making agreements, rather than a full guardianship.
- Protection Against Financial Abuse: Take steps to safeguard your loved ones from scams and exploitation. This includes setting up durable powers of attorney and regularly reviewing accounts.
Action Item for 2025:
- If you or a loved one are concerned about long-term care costs or protecting assets, consult with an elder law attorney to explore strategies like asset protection trusts or Medicaid-compliant annuities.
- Be vigilant against financial scams and discuss these risks with elderly family members.
Step 6: Communicate and Secure Your Plan
Having a plan is great; making sure your loved ones know about it (and can find it!) is even better.
- Tell Your “Go-To” People: Let your Personal Representative, Agent, Trustee, and Digital PR know where your important documents are stored and who to contact (like our firm!) when needed.
- Secure Storage: Keep original documents in a fireproof safe, a safe deposit box (ensure your Executor has access or instructions), or with your attorney. Digital asset instructions should be in a very secure, but accessible, location.
- Regular Review: Life isn’t static. Review your plan every 3-5 years, or sooner if there are major life changes (marriage, divorce, birth of a child, death in the family, significant financial changes, or changes in tax laws).
Action Item for 2025:
- Inform your key individuals about your plan and the location of your documents.
- Schedule a reminder for yourself to review your plan annually or after any significant life event.
Let’s Make 2025 Your Year of Preparedness!
Taking these steps might seem daunting, but it’s one of the most thoughtful gifts you can give yourself and your family. Our firm is here to simplify this process, answer your questions, and ensure your plan is tailored to your unique situation.
Call us today to schedule your complimentary 2025 Estate Planning Review! Let’s work together to create a plan that provides you and your loved ones with lasting peace of mind.