Many people think estate planning involves the creation of a living will, and while a will is a critical part, there are other steps involved in a well-planned estate.
Surrounding yourself with a competent team of professionals to assist with your estate planning is key. Depending on your estate, you could need to enlist the help of an attorney, tax professional and/or a financial planner.
I am a financial advisor based in the East Bay area and offer many services, including offering estate planning advice. While I have clients nationwide, I truly have a passion for working with my community and have helped numerous people from San Leandro, Oakland and the entire East Bay area reach their financial goals.
It’s not an easy or particularly enjoyable task, but everyone with a family can have greater peace of mind when they have a well-established estate plan. Today, we’ll look at a few tips for estate planning from a financial perspective which will hopefully give you a better idea of the next steps to take when forming your plan.
Update All Beneficiaries
When you form a living will, you might think the language in the will supersedes beneficiaries listed on life insurance, retirement accounts and/or other investment accounts in your portfolio, but if the beneficiary on your will is different than the one on file for those accounts then the will likely won’t be enforced.
By keeping your beneficiaries updated, you can ensure the funds go to the correct people and avoid legal complications relating to the estate.
Take Stock
When I sit down with clients to begin estate planning, most people are surprised to learn how much you actually must account for. The first step in determining where your assets will be allocated is listing all those assets, and for many people this is a more in-depth process than they might realize.
Of course you will inventory your monetary interests like investments, accounts and ownership interests but you also must list all tangible assets like houses, cars, artwork and more. In a complete estate, everything must be accounted for, so having an accurate inventory is key.
Build Your Team
It’s important to surround yourself with the right people to ensure your estate is completely planned for. An attorney can provide assistance with proper documentation of your intentions and ensure everything is in order legally. Your accountant also plays an important role because there are numerous tax implications relating to estate planning, and being unwise about the way you plan your estate can mean your beneficiaries suffer extreme tax penalties.
Finally, it’s important to seek the advice of an experienced financial professional to ensure your estate continues to grow and to use different means of investment to equally divide your estate. Each person’s financial situation is unique, and there are multiple ways to leave an inheritance which can ensure an equal share across the board.
Instead of having to sell tangible assets or businesses to split up the proceeds, a financial advisor can use a combination of insurance products and investments to ensure your wishes are met without disturbing existing entities.
Ready to get started planning your estate today? Contact me for local, professional and customized assistance with your estate plan.
*Securities and advisory services offered through MWA Financial Services, Inc., a wholly owned subsidiary of Modern Woodmen of America. Member: FINRA SIPC.
