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The end of the year is a natural time to reflect on your finances and family circumstances. December 31st is also the deadline for qualifying annual exclusion gifts and certain charitable gifts. 

As the busy holiday season approaches, now is the ideal time to get ahead of any financial and estate planning to-dos on your desk. At Sessa & Dorsey, we use the following end-of-year estate planning and financial checklist to get our clients ready for the new year. 

5 Financial Actions to Complete by Year’s End 

1. Maximize Your Annual Retirement Contribution
Are you on track to reach your maximum retirement contributions? Maximum contributions vary depending on your retirement plan and age. 

If you are 50 years or older, you can make catch-up contributions of up to $8,000 to certain plans, including: 

• 401(k) 
• 403(b) 
• SARSEP 
• Governmental 457(b) 

Catch-up contributions are designed to help you increase your savings as you approach retirement. Between the ages of 60 and 63, you can make even higher catch-up contributions of up to $11,250 per year.  

If you are unsure which rules apply to you, we are happy to coordinate with your financial advisor. 

2. Make Use of 2026 Annual Gift Exclusions 
In 2026, you can gift up to $19,000 to any individual without needing to report it on a gift tax return. The recipient typically will not owe any taxes on the gift and does not need to report it. If you give under $19,000, you do not need to report it either. 

If you are married, you and your spouse can each “split” gifts for a total of $38,000 without incurring a taxable gift. (We should note, however, that splitting requires filing a Form 709, unless each spouse gives from their own funds.) 

If you plan to give a larger gift to a child, grandchild, or other relative, remember that the federal estate tax exemption in 2026 is now $15 million. We can coordinate with your financial and tax advisor to help you plan for how you can best support the next generation in your family. 

3. Take Your Required Minimum Distributions 
Required Minimum Distributions (RMDs) are the minimum amount you must withdraw each year from tax-deferred accounts. This does not include designated Roth accounts, which do not require withdrawals until the owner is deceased. 

In 2026 and 2027, RMDs must begin the year you turn 73. You can withdraw more than your RMD, but remember that withdrawals are included in taxable income (excluding Roth contributions and other non-deductible contributions). The first RMD can be delayed until April 1st of the following year, so you do have time, but there is no harm in planning ahead. 

4. Make a Qualified Charitable Distribution from Your Retirement Account 
If you are in the spirit of giving, consider making a Qualified Charitable Distribution (QCD) directly from your IRA to a charity of your choice. QCDs allow you to satisfy all or part of your required minimum distribution without adding to gross income. 

If you have a large IRA, remember that you can only make QCDs up to $111,000 per year in 2026. This doubles for married couples with appropriate IRA accounts, who can give up to $222,000 per year. 

5. Review Income Projections & Year-End Finances 
If your income includes fluctuating bonuses, investment changes, and business profits, take a moment before year-end to review it with your financial and tax advisor. Depending on your income projections, it may make more sense to accelerate or defer income or deductions into 2026 or 2027. Reviewing during this time allows you to consider selling underperforming investments to offset gains before December 31st. 

5 Estate Planning Actions to Take in Q4 

Beyond your finances, it is also wise to review your estate planning documents before the end of the year. Consider the following: 

1. Make Sure Your Adult Children Are Set Up for Success 
If your children are 18 years or older, now is a good time to ensure they have: 

• Durable Power of Attorney 
• Advance Directive/Designation of Health Care Agent 
• A basic Will 

Once a child turns 18, parents no longer have automatic authority to access their medical information or manage their finances. These documents allow your child to name a trusted person to act on their behalf if needed. 

If you have special needs children, you will need to establish a supplemental needs trust in your estate plan to provide for them without interfering with any benefits they should receive. 

2. Evaluate Your Fiduciaries & Estate Instructions 
Take some time to review your estate planning documents, and reevaluate who you have named in the following roles: 

• Personal Representatives/Executors under your Will 
• Trustees 
• Guardians named for minor children
• Agent/Attorney-in-Fact under your Durable Power of Attorney 
• Health Care Agent under an Advance Directive 

Sometimes it makes sense to remove or replace someone in an estate-planning role, whether due to illness, changes in financial circumstances, relocation, or a change in relationship. If you would like to make any changes to these roles, contact your estate planning attorney for assistance. 

While you are evaluating your fiduciaries, also check if any personal directions or instructions in these documents should change as well. If you created these estate planning documents years ago, certain decisions may no longer reflect your wishes today. 

At Sessa & Dorsey, we aim to draft documents to be flexible enough to last for years. However, things can always change, and we can help you update your estate plan for 2027. 

3. Check Trust Distributions to Prepare for Tax Season
If you serve as a trustee or receive distributions from a trust, now is an important time to check in. 

For trustees: Review your trust’s records to confirm that required distributions have been made. Verify that the trust has enough cash on hand to cover annual expenses and any additional net income distributions it may be required to pay out. 

For beneficiaries: If you received distributions from a trust, it will likely be reported on a Schedule K-1 after the trust files its income tax return. You will need the Schedule K-1 before you file, so plan your filing time accordingly. 

4. Update Your Inventory of Assets
Have your assets changed? Take some time to update inventory lists. Consider any large purchases or sales, significant changes in investments, or any inheritances you may have received. 

Be sure to include intangible and digital assets, too, including intellectual property, royalties, bank account numbers, and online accounts that should be passed on to beneficiaries.  

5. Confirm Your Beneficiary Designations
As you prepare for tax season, take a moment to review your beneficiary designations on retirement accounts, bank and brokerage accounts, and life insurance policies.

Many people name beneficiaries when they open a new account or start a new job, then never revisit those choices. This could have been ten, twenty, or even thirty or more years ago. However, beneficiary designations generally control who receives these assets, regardless of what your Will or Revocable Trust says. 

A periodic review checks that your designations reflect your current wishes. If your family has changed or you have updated your estate plan, we recommend revisiting your beneficiaries. 

Close the Year with Confidence

A few thoughtful steps this season could make the new year easier for you and your family. Whether you need to create an estate plan or update an existing one, we are here to help you meet your goals. 

Contact Sessa & Dorsey in Baltimore County, Maryland, at (443) 589-5600 to get started.