By Jeffrey R. Wolfe, Senior Vice President and Manager, Wealth Planning Strategies
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Today is the start of National Estate Planning Awareness Week, which will continue through October 27. As is our custom here at Edwards, we will share some thoughts via a few blogs this week on issues to consider for your estate plan. The goal is to help you understand what estate planning is, and why it is such an important aspect to your financial wellbeing. To kick things off, we’re going to look at ways to better organize your estate plan.
We typically focus on whether you’ve got an estate plan in place at all, which is very important, but it’s equally important to have your planning organized. Often people may have a will or trust “somewhere,” whether that’s in a file cabinet or a safety deposit box. These documents control what happens to your assets, who may act on your behalf should you become incapacitated, and potentially who may care for your minor children, so simply knowing the location of your documents is very important.
If you’ve created a trust as part of your plan, make sure you have titled assets into the trust. All too often clients leave the attorney’s office after signing their documents with a sigh of relief that “well, we got that done.” That’s not the case, though. For your trust to control your assets you must title those assets from your individual and/or joint name to your trust’s name. Doing so puts those assets under trust control, and failing to do so may lead to unintended distributions or the need to probate assets to get them into your trust. Please note, though, some assets cannot be titled into a trust, like IRAs and other retirement accounts. You can make the trust the beneficiary of those assets, but you should speak with your attorney to determine if such a designation makes sense for your planning. In short, make sure you have your assets titled properly.
Not only is it important for you to understand your estate documents, know where they are located and properly title your assets, it’s important to share this information with key individuals. For example, you’ve named someone as your personal representative and/or your successor trustee. Have you informed that person of your request? You should ensure they know of your intentions and confirm they are willing to serve. If not, you may need to update your planning.
While you may not want to share the details of ultimate distributions, it is important to share the location of your documents as well. Your successor fiduciaries will need to know how to locate the documents and perhaps who your tax and legal advisors are so your successors can seamlessly transition into their roles when the time comes.
To help with this process, ask your financial advisor about the Estate and Financial Organizer available through Benjamin F. Edwards. This organizer provides for the accumulation of an abundant amount of information that can help you organize your affairs and provide a starting point for your successors to begin when the time comes to assume their roles.
Creating an estate plan and keeping it up to date is hard enough. Don’t let a lack of organization cause any issues for you or your beneficiaries.
IMPORTANT DISCLOSURES: The information provided is based on internal and external sources that are considered reliable; however, the accuracy of this information is not guaranteed. This piece is intended to provide accurate information regarding the subject matter discussed. It is made available with the understanding that Benjamin F. Edwards is not engaged in rendering legal, accounting or tax preparation services. Specific questions on taxes or legal matters as they relate to your individual situation should be directed to your tax or legal professional.