By Jeffrey R. Wolfe, Senior Vice President and Manager, Wealth Planning Strategies
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Even though holiday decorations have been on the shelves for nearly a month, it’s October, which means it is supposed to be Halloween season! As is our tradition, this is the start of our Scary Financial Mistakes series. You can expect a scary lesson to learn each week this month.
Kicking off the fright is failing to coordinate your estate plan. While many report that less than half of Americans have implemented an estate plan, it’s also very common that folks who have a plan have not coordinated their assets to properly align with that plan.
For example, many people use revocable trust planning as their primary estate plan, but they fail to title their assets into their trust. If you do not retitle your assets into your trust, the trust will not control those assets should you become incapacitated or when you pass away. While most have a pour-over will to move assets into their trust should they fail to proactively do so, one of the biggest benefits of a trust is to avoid probate. If you have a trust, review the titling of your assets to make sure your legacy goals will be met by titling your assets properly.
Another common oversight is failing to review beneficiary designations on your retirement accounts, insurance contracts or annuities. Assets like these are controlled by their beneficiary designation, which means your will or trust will not likely control how those assets will pass. Review your designations to align them with your estate plan.
One more consideration is to share your plan with your loved ones. You don’t have to share terms or asset values, but do share that you have a will or trust. Let them know where the documents are stored or whom they should contact should something happen. Consider alerting your designated successor trustees or personal representatives that you would like them to serve in those roles. You want to confirm your designees are willing and able to serve. In fact, ask your financial advisor for an estate and financial organizer to help consolidate your planning materials.
Hopefully you’ve got an estate plan in place. If you don’t, consider implementing one immediately. But having a plan isn’t the final step—you have to make sure your assets and documentation are organized so that your plan can be implemented as you’ve designed.
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.