How Thoughtful Estate Planning Can Reduce Stress

Key takeaways:
  • Thoughtful estate planning can help your loved ones feel supported during a difficult time.
  • Organizing your financial life today can reduce the stress you and your family experience tomorrow.
  • Knowing your trust advisor will be there for your family can give you peace.

 

Estate planning isn’t only about ensuring your wishes are carried out when you’re no longer here. It’s also about making sure your loved ones feel supported. You can do this by establishing an estate plan that won’t lead to unfavorable tax consequences or conflict between beneficiaries. In addition, by taking care of a few details today, you could help lower your family’s stress during a difficult time.

Here are three thoughtful estate planning tips that can bring clarity to your loved ones when they need it most.

Catalog your Assets and Resources

Unfortunately, it’s not uncommon for someone to pass and take their financial information with them. Yes, we can go through past tax returns to look for clues, but the findings are typically spotty. Family members often end up burdened with the search, which can be stressful and time-consuming.

To avoid putting your family in this situation, consider creating a document or booklet that includes the following:

  • Assets (including whom can help them access accounts)
  • Digital assets and passwords (i.e., how to access them)
  • Liabilities
  • Income (including Social Security and pensions)
  • Long-term care policy information
  • Key contacts (g., attorney, accountant, trust officer, close family members and friends)

To assist you in cataloging your assets and resources, we’ve created a fillable guide titled “A Letter to My Loved Ones.”

This guide is meant to help your loved ones find and access your financial accounts, connect with your advisory team and locate important documents. Of course, you should also let your loved ones know it exists. Be sure to provide a copy to your trustee or attorney or accountant so they know it’s available too. Don’t forget to update this resource every few years or more frequently if your circumstances change.

Consolidate your Accounts

Maintaining multiple accounts with several different financial providers can be a headache for several reasons; rarely is it worth the very modest amount of interest you gain. Attempting to bring your assets back and close accounts can be a significant undertaking. This can be an especially burdensome task for a family member or trustee, as it often requires a certificate of death or order of incapacitation.

A good practice is to think twice before you open another account. And if you have assets spread out across multiple accounts, consider taking steps to consolidate these now.

Introduce your Advisory Team to your Family

If you work with a trust company or estate planning professional, this person, along with your attorney and other advisors, can be there for your family in a difficult time. In addition to administering your trust or estate, these professionals can guide your family through immediate next steps, such as notifying beneficiaries or making funeral arrangements.

But if your family members don’t know these individuals, they may be unsure of where to turn. Introducing your loved ones to your advisory team gives them peace of mind knowing they’ll have a familiar face to call.

Little-known ways a trust advisor can support your family in a difficult time:

  • Serves as a neutral mediator between beneficiaries
  • Clearly explains your trust to beneficiaries
  • Educates beneficiaries about responsible wealth management
  • Seamlessly coordinates with other advisors

Plan Today to Support your Family Tomorrow

Incorporating these three tips into your estate planning process can be a way to help your family feel even more supported. Although these actions may seem relatively minor, taking care of these details can serve as a meaningful final gift for your family.

A thoughtfully prepared estate plan can alleviate stress for all involved, including you. If you haven’t established a plan or updated your existing one, our estate planning professionals can help. To start the conversation, reach out to an Adams Brown trust advisor today.