When was the last time you met with your estate planning attorney? If you’re like many people, the answer may be “several years ago.” In fact, some people meet with an estate attorney once, sign their documents, and then put their estate plan away, assuming the job is finished.
But your financial life doesn't stand still, and neither should your estate plan.
Many people may go five or 10 years between meetings with their estate attorney, while they meet with their financial advisor regularly. Your financial advisor often serves as the quarterback of your financial life, helping coordinate investments, retirement income, insurance, taxes, charitable giving, and other financial decisions.
So why not bring your estate attorney into the conversation?
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Put Your Financial Team on the Same Page
Inviting your estate attorney to a meeting with your financial advisor can help make sure everyone understands your goals and that the different pieces of your financial plan work together.
Your advisor may know that you recently purchased a second home, started a business, welcomed a grandchild, received an inheritance, or changed your retirement plans. Your attorney may not know about those developments until years later—if at all.
The same is true in reverse. Your attorney may have established a trust, changed how certain assets should be transferred, or recommended changes to your legal documents that your financial advisor needs to know about.
A joint meeting can help eliminate those communication gaps.
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What May Need to Be Updated?
An estate plan involves much more than a will. It can include trusts, powers of attorney, health care directives, and beneficiary designations. Some assets, including retirement accounts and life insurance policies, can pass according to beneficiary designations rather than the instructions in your will or trust.
Common areas to review include:
Wills and trusts. Have your wishes changed? Are the people you named to receive your assets still the people you want to benefit?
Beneficiary designations. Review beneficiaries on IRAs, 401(k)s, life insurance, and other accounts. These designations should generally be coordinated with your overall estate plan.
Powers of attorney. Are the people you appointed still appropriate to make financial or legal decisions for you if you become unable to do so?
Health care documents. Review your health care directives and related appointments to make sure they reflect your current wishes.
Family circumstances. Marriage, divorce, births, deaths, remarriage, grandchildren, and changes in family relationships can all affect an estate plan.
Another family circumstance to keep in mind is children aging into adulthood. We have an article that discusses what documents need to be updated once your child turns 18. Read more here.
Assets and financial circumstances. A significant change in your investments, real estate, business interests, or overall wealth may warrant a review.
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Make Estate Planning a Team Effort
National Estate Planning Awareness Week is in October, making this an excellent time to take another look at your plan. The National Association of Estate Planning Councils says the observance was established to help Americans understand the importance of estate planning and keeping a plan current.
At Chambers Bay, we take our own advice! We recently also met with an estate attorney to update our documents. There is power in collaboration, and we believe your financial plan and estate plan should work together. We welcome the opportunity to work with your estate attorney and other professional advisors. Instead of having each member of your financial team work independently, consider bringing them together.
At your next meeting with your financial advisor, ask whether your estate attorney should join the conversation. A little coordination today can help make sure your wishes, your finances, and your legacy remain aligned for the future.