October is Estate Planning Awareness Month—a good reminder that estate planning is about much more than deciding who receives your assets after you are gone.
A well-designed estate plan helps ensure that your wishes are carried out, your family is protected, and the wealth you have worked hard to build is transferred as efficiently and intentionally as possible. Just as importantly, it should work together with your investment strategy, tax plan, retirement income strategy, and family goals.
At Client First Capital, estate planning is an important part of the comprehensive financial planning relationship we provide to our clients. If you have not reviewed your estate plan recently—or if you have questions about whether your current plan still reflects your wishes—we encourage you to take advantage of this service.
Estate Planning Is More Than Having a Will
Many people think of estate planning as simply having a will. While a will is important, a comprehensive estate plan can address much more.
Depending on your circumstances, your plan may include trusts, beneficiary designations, powers of attorney, healthcare directives, charitable planning, and strategies for transferring wealth to the next generation. It can also address how and when assets should be distributed and who will be responsible for making important financial and healthcare decisions if you are unable to do so yourself.
For families with significant assets, the coordination between these elements becomes particularly important. A beneficiary designation that does not match the intent of your trust or overall estate plan, for example, can produce an outcome that you never intended.
Your Estate Plan Should Evolve With Your Life
One of the biggest estate-planning mistakes is creating a plan and then forgetting about it.
Your financial life can change significantly over time. Perhaps your retirement assets have grown, you have purchased or sold property, your family circumstances have changed, or you have established a charitable interest. Tax laws and estate-planning strategies also change.
Even relatively small changes can create a reason to revisit your plan.
We generally recommend reviewing your estate-planning documents and beneficiary designations periodically and whenever you experience a significant life event. The goal is not necessarily to change your plan—it is to make sure the plan you have continues to accomplish what you want it to accomplish.
Related: Estate Planning Is More Than a Will: 5 Levels Every Family Should Consider
