Ignore the winds of political change swirling around you, and instead focus on keeping your own matters in order.
Your 2025 Legal Checklist
1. Review Your Will and Ancillary Documents
Decide if you need to review your will and ancillary documents such as powers of attorney. If you have had significant changes in agents, family, wealth, or residence, then you need to meet with your attorney to discuss the impact on your planning. If your documents are five or more years old, then you need to review them to make sure they have the most recent language.
2. Understand the Reclassification of Hospital Status
Check out the CMS final rule that allows you to appeal a hospital’s reclassification of your hospital status from inpatient to outpatient receiving observation services. This could have real healthcare implications for you. A reclassification is a denial of hospital stay under Medicare Part A, which could negatively impact you if you need care in a skilled nursing facility (42 CFR Parts 405, 476, and 489).
3. Throw Out Your Ladders
If you are over 70, throw out your ladders. Your balance, strength, and coordination have declined, meaning you have an increased risk of falls and serious injuries when you are using a ladder.
4. Check Your Medications
Check your medications against the Beers Criteria for Potentially Inappropriate Medication Use in Older Adults. It is a list of potentially harmful medications whose side effects, drug interactions, or adverse impact on kidneys could outweigh the benefit of taking the medication. If you find your medication on the list, then schedule an appointment to visit with your doctor to discuss.
5. Speak to Your Attorney About Your Irrevocable Trust
If you have an irrevocable trust and want to modify it, check with your tax attorney or CPA first. That is because some trust modification could result in gift tax liability.
6. Familiarize Yourself With Tax Regulations
Speaking of taxes: familiarize yourself with the final regulations regarding basis consistency between an estate and the recipient of property from a decedent. On September 17, 2024, the IRS issued final regulations on the topic. When someone dies, the property in their estate receives a basic step-up (or, rarely, a step-down). The basis reported by the decedent’s executor to the IRS must match the basis reported by the individual who inherited the property.
7. Learn More About IRAs
If you have inherited, or expect to inherit, an IRA or qualified retirement account, you need to know about the IRS’ final regulations on the required minimum distribution rules. These apply for distribution calendar years beginning on or after January 1, 2025. Most beneficiaries subject to the 10-year rule must take their RMD for 2025. They may, but are not required to, take missed RMDs for the years 2021–2024. The retirement account must be fully distributed within 10 years of the account owner’s death.
8. Check Your Non-Compete Agreement
For those of us still working, you want to keep up with the ever-changing landscape of non-compete agreements. The Federal Trade Commission issued a final rule that blocked them, but that rule was in turn blocked by a Texas federal district court.
9. Prepare for Medicaid
Planning to qualify for Medicaid in Texas and still keep your house? Generally, a residence is not counted for means-tested benefit planning. But one couple tried to stretch the rules a bit too far. They used their otherwise countable assets to buy one-half of their daughter’s home and then claimed the property was exempt when they applied for Medicaid. An appellate court knocked that out, ruling that an applicant must occupy the residence prior to filing his or her Medicaid application.
Hammerle Finley is Here to Answer Your Legal Questions
If you or a loved one have any questions about being prepared in the new year, schedule a consultation with our team of expert attorneys today.
In the meantime, this list should be enough to get you started in 2025. Make it a good one!
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
