Top 5 Financial Planning Concerns for Retirees-(5) Estate and Legacy Planning.
Top 5 Financial Planning Concerns for Retirees-(5) Estate and Legacy Planning. Continuing our series on the top concerns of retirees for both financial and non-financial issues, here is the fifth and final Financial Planning concern.
5. Estate and Legacy Planning
Admittedly I am kind of “cheating” or “double-dipping” on this concern as I just posted another article in the Gazette on estate planning issues. That article referred to an opportunity as families come together for the holidays for them to have what is referred to as “the Conversation” with aging loved ones. I view estate planning concerns as integral to financial planning since, in my other “hat” as an estate planning attorney (not for Delaware clients, only those in Virginia, Maryland, or Washington, DC), I help clients coordinate their estate and financial (and tax) planning to get the optimal results in order to get peace of mind. In fact, I prefer to call what I do for them Peace of Mind planning since that is the ultimate goal. But, of course, to get there, we have to discuss and plan for serious issues like disease, disability, dementia, or death (what I refer to as the 4 D’s–and then add in Denial as the 5th D!). These can be difficult discussions to have with clients, and certainly can be even more difficult in the family “conversation,” but not talking about them and planning for them does not mean things won’t happen. Rather, it just means no one will be really ready when those things happen.
It is not just a matter of getting estate planning documents in place. That is an important part of this process, of course, but a truly effective plan includes coordination of financial planning with the estate plan, and awareness by those entrusted in some legal role such as Power of Attorney Agent, Trustee, or Executor, of what you have, where it is, and what happens next. Those are all part of the Conversation and the action that comes from that. This link to a blog entry I wrote gives you more details on this process and provides you with some great free resources to help you get started with the Conversation. https://www.dbllawyers.com/its-not-just-pumpkin-spice-time-its-time-for-the-family-conversation/
One of the tools I provide my estate planning clients is what I refer to as the Peace of Mind Planning Roadmap Organizer. I am happy to share that with you free of charge if you email me at George@SafeHarborFinancialAdvisors.com and just put Roadmap in the subject line.
Don’t forget that part of comprehensive estate planning is not actually the legal estate plan documents, but ensuring that your beneficiary designations on retirement accounts, insurance, annuities, pensions, etc. are accurate and up to date and align with the overall financial and estate plan. Many people don’t realize that their insurance policies and retirement accounts will not pass through their Will or Trust to their beneficiaries without that being affirmatively done (and that is not often the best idea), so having those beneficiary designations reviewed and updated as needed is a critical part of the planning process.
You should work with an experienced estate planning attorney to get your legal documents in place. There are many traps for the unwary and DIY documents in particular can not actually do what you think they will do in some cases. As I tell my clients, there are no do-overs or “mulligans” with estate planning so it is critical that the plan you have in place works when you have the “just in case!”
And if you would like assistance with the financial planning part of the Conversation action plan, please reach out to me to learn more about what a specialized retirement-focused, fiduciary, fee-only financial advisor can do for you. You can start by visiting our website at www.SafeHarbor.financial where you will find information about our cash flow approach to retirement planning, the value of using a Retirement Success Advocate, and a list of our standard projects and fees. Or you can call Safe Harbor at 302-313-6644 or email us at info@safeharborfinancialadvisors.com for an initial no-cost, no-obligation assessment meeting.
Stay tuned for the Top 5 Non-Financial Planning Concerns for Retirees.
Best wishes for a wonderful Thanksgiving to all!
