Estate planning requires careful consideration over the course of years.Estate plans need to be updated to ensure they fulfill their intended roles. Failing to monitor a client’s life events is a common estate planning mistake. Advisors should make sure parents have wills and name guardians for their children. Wishes should be put in writing, since you can’t assume verbal wishes will be honored. Marriage and divorce can mean changing beneficiary designations on retirement accounts and life insurance policies. Joint assets may need to be retitled. Advisors should note when a client’s financial status changes for better or worse. An increase in wealth can complicate passing assets to heirs, while a decrease frequently requires simplified estate plans. An inheritance plan should be made when a client opens a business. Advisors need to check beneficiary designations on retirement accounts, annuities and life insurance policies. Make sure beneficiaries know where important documents can be found, including online accounts and passwords. Assets need to be retitled if a trust is set up. Remember that estate plans, like other aspects of financial planning, require review and change.
