This letter should include an inventory of assets and a list containing names, addresses, and phone numbers of your various advisors (for example, your attorney, accountant, financial professional, or banker). Consider drafting and regularly updating a letter of instruction to your children and/or fiduciaries.Consider writing a memo to direct the specific pieces of "Tangible Personal Property" (furnishings, jewelry, automobiles, collectibles) you want to leave to certain individuals, if this is allowed in your state and is part of your will or trust.Read Viewpoints on : Estate planning for the digital era Create a list of your digital assets and name a successor to handle them.Review and update life insurance policies and/or retirement plan beneficiaries.Carefully review the detailed letters of instruction from the estate planning attorney, and work with your financial advisor and attorney to take action, such as updating beneficiaries, retitling assets, etc.Check with your plan's governing documents to understand its beneficiary designation policy.Īs you put the finishing touches on your estate plan, here are some important steps to consider: Tip: Some retirement plans may automatically designate your spouse as the beneficiary unless you name another beneficiary and your spouse has consented to the designation in writing. Remember, having beneficiaries designated on an account, such as a brokerage account, 401(k), or IRA, allows the account to pass outside probate, enabling your beneficiaries to avoid the time and expense of the probate process. If the beneficiary designation on your accounts names the heirs directly, it would give them unfettered access to the assets immediately. For example, your will or revocable trust may have provisions to leave your assets to an irrevocable trust for your heirs that gives you the ability to control the ultimate distribution of the assets upon your death. Many times beneficiary designations are not set up properly, resulting in the distribution of those assets differently than intended. This allows ownership of the account to be transferred to a designated beneficiary upon the owner's death. "Many people are not aware that beneficiary designations supersede the will or trust, making this a critical step in determining what happens to your assets after you die."Ī beneficiary is an individual who receives the benefit from an estate, trust, retirement account, life insurance policy, or account with a transfer on death (TOD) designation. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest."One of the biggest mistakes people make at the end stages of the estate planning process is not updating their beneficiaries," says Sander Bleustein, vice president, advanced planning at Fidelity Investments in Naples, Florida. There are no guarantees that working with an adviser will yield positive returns. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). All investing involves risk, including loss of principal. This is not an offer to buy or sell any security or interest. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. SmartAsset does not review the ongoing performance of any RIA/IAR, participate in the management of any user’s account by an RIA/IAR or provide advice regarding specific investments. SmartAsset’s services are limited to referring users to third party registered investment advisers and/or investment adviser representatives (“RIA/IARs”) that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. Securities and Exchange Commission as an investment adviser. SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S.
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