Annual Financial + Estate Planning Priorities
By Kristin Hovencamp
Over the course of a year, how many times have you forgotten to revise an important document? Often, you can remedy a mistake. With an estate plan, there is a point of no return. Harvard Law School professor and expert in trust and estates, Robert Sitkoff, offers this advice: “Bad things happen, and you have to plan for that. Hope for the best and plan for the worst.”
A year-end checklist can prompt your memory and help keep financial and estate documents current.
Has your family had any major life events that warrant review of your designated beneficiaries? Events can include the birth of a child or grandchild, a change in marital status, or a family member’s passing. IRA beneficiary designations trump a will, so it is essential to keep them current.
Is your last will and testament relevant? Reviewing your will is an excellent habit to form.
Do you have durable powers of attorney in place? Should you become incapacitated, these crucial documents delegate authority to oversee your health, finances, and necessary legal signatures.
Have any changes been made to your retirement accounts? Did you make any significant financial transactions or execute a rollover from a former employer plan? Could potential changes to tax laws affect your estate?
Do you have adequate life insurance, long-term care insurance? Revisit your policies before their annual renewal date. You may want to increase or decrease coverage or discover an option that better suits you or your family.
Are your charitable-giving vehicles accomplishing what you envisioned? Charitable goals can evolve, and your estate should reflect such adjustments.
To avoid unnecessary consequences, review your estate plan at least every five years, more frequently when significant life events occur. Make it a habit and put a yearly reminder in your calendar. “Life is what happens to you while you are busy making other plans.” – John Lennon
Kristin Hovencamp is an Investment Executive and Director of Business Development with HAZLETT WEALTH MANAGEMENT, LLC, which is independent of Raymond James and is not a registered broker/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James does not provide tax or legal advice. Please consult the appropriate professional for guidance with your situation. 675 Sun Valley Road, Suite J1 + J2 Ketchum, Idaho 83340 208.726.0605. HazlettWealthManagement.com