Five Essential Elements for Effective Estate Planning
Posted by Amanda Wojtkowski on June 27, 2024
As you embark on the journey of estate planning, it's a proactive step towards ensuring your and your loved ones' future well-being. To craft a robust estate plan, consider these five essential elements:
1. Holistic Coordination: View your estate plan as an interconnected system where each component — be it a will, power of attorney, trusts, retirement accounts, or life insurance policies — plays a vital role. Align these elements to work in concert, optimizing wealth preservation and reflecting your intentions.
2. Current Beneficiary Designations: Regularly review and update your beneficiary forms for retirement plans, annuities, life insurance policies, and other accounts. These forms often take precedence over your will, so keeping them current is crucial to ensure your assets are distributed according to your wishes.
3. Trust Funding: If your estate plan includes trusts, such as a revocable living trust, ensure they are properly funded. Transferring legal ownership of assets into the trust is necessary to avoid probate, maintain privacy, and expedite the distribution process.
4. Correct Asset Titling: The way you title your assets, whether individually or jointly, can significantly impact their distribution upon your passing. Regularly review asset titles to ensure they align with your estate planning objectives and adapt to any changes in your personal circumstances or the law.
5. Ongoing Plan Review: Treat your estate plan as a dynamic document that requires regular updates. Life events like births, deaths, marriages, divorces, job changes, or relocations can all necessitate revisions to your plan.
For assistance in ensuring your estate plan is comprehensive and up-to-date, our team is here to help. We'll guide you through covering all aspects of estate planning to meet your goals.
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Amanda joined the Firm in January 2018 as a tax staff accountant after interning for the Firm in 2017. She is now a manager and specializes in tax compliance for individuals, trusts, and estates, and also provides tax services to privately held businesses and private foundations.