Critical Mistakes You Want To Avoid

I recently helped a couple, let's call them John and Mary. They came to me to have their investments reviewed, I also asked them to bring in their estate planning documents. They were confident that they had everything in order.

But as we dug deeper, we discovered a few critical issues—they hadn't titled some of their most important assets as directed by their estate planning attorney.

John and Mary had significant investments in a brokerage account, but the account was still in John's name only. This meant that if something happened to John, Mary would face a lengthy probate process to access those funds." Additionally, they did not have beneficiaries on one of their IRA’s.

This is a common issue that can have serious ramifications. Here are three key points to consider ensuring your investments align with your estate planning documents:

1. Review Account Titles:

Make sure all your investment accounts are set up correctly. This could mean joint ownership, transfer-on-death designations, or placing them in a trust.

2. Update Beneficiaries:

Regularly review and update beneficiary designations on your retirement accounts, life insurance policies, and other investments. This helps ensures that your assets go directly to your intended heirs without unnecessary delays.

3. Coordinate with Your Estate Plan:

Work with your financial advisor and estate planning attorney to ensure that all your documents are in sync. This includes your will, trusts, power of attorney, and healthcare directives.

By taking these steps, you can avoid the pitfalls that John and Mary almost faced. They were relieved to know that with a few adjustments, their assets would be distributed as they intend and easily accessible to each other and their heirs.

Remember, estate planning is not just about having the right documents; it is about making sure everything works together seamlessly. If you have any questions or need help reviewing your estate plan and investments, don't hesitate to reach out.

Steward Partners Investment Solutions, LLC (“Steward Partners”), its affiliates and Steward Partners Wealth Managers do not provide tax or legal advice. You should consult with your tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.

The case study presented is provided for illustrative purposes only. Past performance is no guarantee of future results. The information has been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. These strategies do not guarantee a profit or protect against loss and may not be suitable for all investors. Each customer’s specific situation, goals, and results, may differ. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.

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