Retirement Gal

All Things for a Secure Retirement

  • Home
  • About
    • Terms of Use
  • Contact

Estate Housekeeping

  • Estate Planning
Share:

The start of the year offers a great opportunity to take stock and reflect on any major changes that have happened to your life in the past year. Perhaps you got married (or divorced), added a new child to your family, bought a house or decided to retire. The myriad happenings of everyday life may mean that it’s time to review and revise your estate plan accordingly.

If you haven’t done so already, now is the time to consider the following:

  • Who have you assigned as the beneficiaries on each of your accounts? As a rule it’s a good idea to check this at least annually with all account custodians (IRA, 401(k), pension, deferred compensation, life insurance, annuity, etc.). You may think, “But I’ve done this already and nothing has changed.” I still recommend checking anyway, as companies and their human resource departments can make mistakes, so make sure it’s not with your account. Furthermore, sometimes people only list primary beneficiaries and neglect to name contingent beneficiaries. If you find this is the case with your account, be sure to provide contingents. Otherwise in the absence on an appropriate beneficiary assignment, your heirs will be subjected to the custodian’s default policies.
  • Do you have financial and healthcare/medical powers of attorney drawn up? These are legal documents which are required, in order to have someone else – a trusted person you have chosen – act in your place to make appropriate medical and financial decisions for you should you lose capacity. Illness and incapacity can be sudden and come at any age. Without durable powers of attorney your loved ones will be relegated to a court of law to obtain authority to handle your affairs.
  • Check your accounts for proper titling. This is especially imperative if you have a trust, and extends to other assets, such your primary residence. Furthermore, if your trust is in one name but you have accounts that are titled differently it could cause problems for your heirs that the time of your death. For example, say your legal name is Robert John Wood. You go by Jim Wood. You have a few accounts under Jim Wood and others under R. John Wood. Plus your Trust is called the Robert John Wood Trust. This lack of consistency may cause a nightmare for your heirs upon your death. The primary document of identification when someone dies is their death certificate. The death certificate holds the legal name of the deceased and that is what must be submitted as proof of death to any company before they will pay the beneficiary. If the titles/names do not match the process will be grossly delayed.
  • If there have been any changes to your family status, it’s a good idea to notify your estate planning attorney so that revisions can be made to your plan. Annual review of your estate plan is recommended, even if it is only a call to your estate planning attorney to double check on any changes in the law that might apply to you.
Designated Beneficiaries Estate Planning Trust Will
January 20, 2017 Melanie

Post navigation

New Definition of Retirement? → ← Dead Last (…or first depending on how you look at it)

Connect with Us

RSS
Facebook
Facebook
Google+
Google+
http://retirementgal.com/estate-housekeeping
Twitter
Visit Us
Follow
LinkedIn
YouTube
Follow by Email
Financial Perspectives

More from Us

As part of Financial Perspectives, we share our unique view through these other affiliated blogs:
Financial Perspectives
Investment Edge
Retirement Corner
The Sharp Chartist

Recent Posts

Love and Money

Love and Money

Share: Happy Valentine’s Day. In the spirit of the day, I’m sharing the following article discussing how not to let money issues get in the way of love. Considering that […]

More Info
The Big Three

The Big Three

Share: Sharing from Marketwatch.com. A recent study from the Boston College Center for Retirement Research identified three major risk to retirement plans, namely out-of-pocket medical expenses, [...]

More Info
A Consolidated Effort

A Consolidated Effort

Share: The era of working for a single employer for the length of your career—40-plus years and receiving a pension—is a distant memory. On average, an American worker holds more […]

More Info
It’s Not All Yours

It’s Not All Yours

Share: Sharing from MarketWatch.com… Many Americans have benefited throughout the years by not having to pay taxes on contributions paid into our traditional 401(k) plans and IRA accounts and on [...]

More Info
Smoothing Out the Transition

Smoothing Out the Transition

Share: In a recent Gallup poll, almost half of those who are not yet retired (46%) projected they won’t be financially comfortable when they stop working. And in another poll, [...]

More Info
85% is the New 90% for Tax Year 2018

85% is the New 90% for Tax Year 2018

Share: Not sure if all the changes due to the Tax Cuts and Jobs Act have left you short-changing your income tax withholding? If you failed to withhold sufficient taxes […]

More Info
Should You Max Out Your 401(k) Contribution?

Should You Max Out Your 401(k) Contribution?

Share: Last year, the IRS increased 401(k) contributions for 2019 to $19,000 annually (versus the maximum contribution limit of $18,500 for 2018). That means that workers looking to max out […]

More Info
Widow’s Walk

Widow’s Walk

Share: At 15%, widows’ poverty rate is three times that of elderly married women, according to new data from the Center for Retirement Research at Boston College. Why the disparity? […]

More Info
Paved With Good Intentions

Paved With Good Intentions

Share: The turn of the calendar is often seen as a fresh start, where we resolve to make changes that improve our lives. Along with health and fitness, improvements to […]

More Info
Make the Right Choices for Your Retirement

Make the Right Choices for Your Retirement

Share: As we close out the year, it never hurts to be reminded about what it takes to continue securing your retirement. Here are some wise words from wiserwomen.org… Once […]

More Info

Disclaimer

The information provided on the Blog is provided for informational purposes only and should not be used as a substitute for personalized professional financial advice. Participation in any way with the Blog does not constitute an investment advisory, financial or retirement planning engagement. You should consult with your investment adviser or another financial professional before making any investment decisions. While all information on the Blog is gathered from sources that we deem to be reliable, we cannot guarantee the completeness and/or accuracy of such information. From time to time general investment guidance may be given in the Blog in response to questions asked by readers of the Blog. There is no guarantee as to the risk, returns, and performance of any investments referenced herein.

Copyright Retirement Gal and Financial Perspectives | Terms of Use