by Ryan McKeown, CPA, CFP®, Financial Advisor, Wealth Enhancement Group

Most of us don’t want to think about the time when we won’t be around anymore for our loved ones and our loved ones certainly don’t want to think about when we won’t be around for them either. While difficult to do, it is highly recommended that you share your estate plan and financial plan with those who will be responsible for, and perhaps even the beneficiaries of your estate when you do pass on. If you have not created an estate plan or financial plan yet, it may be helpful, with the guidance of a qualified financial advisor, to help facilitate that discussion so that all options are considered. Some of the most well-executed estate plans have come with complete discussions with the entire family to get all of the issues out now while they can still be addressed, instead of after the fact when no changes can be made.
 
In having these discussions, it is also important to note where important documents such as wills and insurance policies can be found. It would be helpful to create a list of all bank, investment, retirement, and insurance accounts and their beneficiaries as well. Remember that any account, such as an IRA, generally has a designated beneficiary. Any account with a beneficiary designation does not pass through your will, but rather to who is listed as beneficiary on the account. Your will and beneficiary forms can be entirely different, and perhaps not even listing who you might like to receive a particular asset. There are even significant tax benefits in naming certain individuals or entities beneficiaries as well.
 
A list of your professional advisors (financial advisor, accountant, and attorney) should also be made so the individuals responsible for handling your estate know who to contact to make sure all matters are handled correctly. Make sure to emphasize that in most cases, it is best for all of your professional advisors to be able to communicate with each other. They all have different areas of expertise, and while they may have significant knowledge in one area of your situation; they may not always see the entire picture to do the most effective job. More importantly, emphasize that no documents should be signed before consulting with the appropriate professionals. Sign the wrong form or check the wrong box and it could mean an unexpected tax bill. Lastly, let the people responsible for handling your estate know that they should contact your professional advisors immediately following your death. In certain situations, there are deadlines that need to be met in order to take advantage of special provisions in the tax code.
 
Two things are certain in life: death and taxes. With good communication and a solid plan, at least the taxes will be a little easier to handle. A team of professional can help get you on the right track to make this discussion a reality.