SWFG: The Importance of Reviewing your Estate Plans
The Holidays are often a time to spend moments with your family and loved ones. This is why we believe it is a fitting time to speak about the importance of reviewing your estate plans, and how it can affect your loved ones.
The most common way to transfer assets to your heirs could also be a messy one.
- Do you have an out of date Will that doesn’t relate anymore to your property or estate?
- Are your records scattered all over the place?
- Do you have banking, email and social media passwords that no one else knows?
All of these can lead to a mess that someone else will have to clean up.
How do we solve for this?
Having estate plans which you review every five years or so is a great start. Here are some reasons why we believe this is important (in no particular order):
- Your Wishes not being Fulfilled
- State Law Changes
- Financial Institutions disliking Stale Documents
- Federal Estate Laws Changing
- Executors or Trustees become Inappropriate
Your wishes not being fulfilled. We look out for your best interest and wishes, and we know each year these may change. A new addition to the family, a new home, new investments or a passing of a family member are a few of the numerous explanations for why your wishes may change.
State law changes. Simply put the laws can differ from state to state. Also, there is a chance the current legislation might change.
Financial institutions disliking stale documents. If a power of attorney is more than eight years old, it might not be received well by a bank or brokerage house. The institution may want to get an affidavit from the attorney who originally created the document to attest to its validity.
Federal estate laws changing. Recent years have seen major changes to estate law, from the SECURE ACT to changes in federal exclusions and gift taxes.
Executors or trustees becoming inappropriate. An individual may have aged, moved away or passed away. This important individual needs to be capable of executing your affairs for years to come.
An additional note to consider: if you have beneficiary designations (commonly seen on an IRA or 401K account), those beneficiaries take precedent to any wishes you proclaim in your will. Similarly, accounts held in joint will go to the co-owner before any wishes in your will.
We’ve recently had conversations with our clients about having their will, power of attorney and health care directive reviewed if they have not done so recently. Periodically, we contact our clients to make sure these documents are up to date, an appropriate trustee or executor is
assigned, as well as identifying the importance of reviewing these documents.
Stribling~Whalen Financial Group takes advantage of a great online tool to capture “life” documents, record and online passwords called Everplans. If you have questions about this tool, or are interested in using this tool, please let us know.
As always, thank you for the introduction of your friends and family that so many of you have made. We are honored to serve you! As a service to our clients, we are happy to act as a sounding board for your friends and family. If any of them should need a second opinion on their financial situation, introduce them to www.striblingwhalen.com or call us at 678-989-0048.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Stribling~Whalen Financial group and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
