The Financial Planner’s Role in Estate Planning

The Financial Planner’s Role in Estate Planning

Estate planning is one of the most important aspects of everyone’s life. Maybe yours also. And why not, as you are going to choose the person who will get everything that you have earned throughout life. You want to handover your estate to the right person while ensuring he/she gets the most out of it, at the right time. 

But, who can help you with proper estate planning? 

You must be saying “estate attorneys”. Yes, you are right. But, estate planning involves many critical aspects that an attorney can’t help you with. For instance, you also need proper inheritance tax planning to ensure that your beloved ones get the maximum benefit of your estate without any trouble. 

A financial planner proves to be the best professional who can help you with almost everything related to estate planning while keeping the estate plan intact. There are many ways a financial planner assists you with your estate planning, and here we have mentioned a few most important ones. If you are uncertain about hiring a financial planner for inheritance planning, these points will be of great help. They will solve your confusion and help you make wise decisions that you will be proud of. So, let’s check how a financial planner can play a significant role in different aspects of your estate planning.

Reevaluate Your Estate Planning Documents 

Estate Planning

Many people never look at their estate planning documents once they are established. This disconnect may lead to several estate planning problems. For instance, your documents may not be drawn up in an intended manner or contain things that have changed over a period. Thus, it is important to have a second look at your estate planning documents. And a financial planner helps you with the same. A financial planner helps read and understand your estate planning documents precisely. He/she can also assist in solving problems in the document if there are any. Moreover, a financial planner puts the document content into layman’s language for better understanding. 

Updating Beneficiary Designations

Beneficiary designations inform the insurance company or financial institution where the money or assets needs to go after your demise. Whether it is retirement accounts, insurance, or investment accounts, all will have beneficiary designations. It is essential to keep checking these beneficiary designations to avoid future troubles. Also, you need to ensure the beneficiary designations are updated as per your current family situation and your choices so that there will be an appropriate beneficiary for your insurance or retirement money.

A financial planner periodically reviews your insurance policies and investment accounts. Also, If the situations in your life change, he/she provides you with a precise suggestion about beneficiary designations. Most importantly, a financial planner to point out an inconsistency between your estate planning documents and beneficiary designations and ensure they are aligned. 

Identifying Things That Can Impact Your Estate Plan

Some major changes in your life can impact your estate planning. A financial planner keeps track of all such modifications or significant life events and informs you how they can impact your estate plan. For instance, in case you are planning for remarriage or divorce, a financial planner will identify some significant changes that may affect your estate plan. You can be worry-free assuming that your financial planner is there to look after your estate plan and the changes.

Dealing With Unnecessary Death Tax

When it comes to managing the death tax on your estate, a financial planner proves to be of great importance. If you are a married couple, the financial planner will check if you are using a credit shelter trust properly when your property exceeds the estate death tax exclusion amount. Moreover, a financial planner works with you in advance and identifies the potential asset challenges that come with the death tax. Using credit shelter trust a planner protects your heirs from future tax bombs on the federal and state level.

Managing Assets in the Other States

Estate Planning

One of the essential roles of financial planners is considering your assets in other states and ensuring their proper documentation. They make sure the assets you owned in other states are having appropriate documents so that those assets will be transferred to the right successor on time. Also, a planner identifies problems with your assets and helps you comply with the particular state’s laws regarding estate planning. 

Assistance With New Changes 

You mostly seek a lawyer for updating or making any changes to the estate planning documents. And a lawyer may only draft a document reflecting the changes you wish to make. He/she may not tell you the impact of those changes unless they have in-depth knowledge of your current situation. However, a financial planner closely works with you and understands your circumstances. Thus, he/she can identify potential risks or impacts of changes you wish to make to the estate planning. A financial planner points out any discrepancies and helps you understand them before you invest money, putting it into writing. 

On a Final Note! 

While an attorney is an indispensable part of your estate planning, it is also essential to consider the role of other professionals like financial planners. They are the people who can keep your estate plan intact and offer you accurate advice. Financial planners ensure that your estate planning directly supports your wishes and circumstances. 

Liza David

Hi, I am Liza David passionate about internet stuff such as blogging, affiliate marketing and most importantly, I like to trade domain and website so if you are inside digital marketing, let's connect for future opportunities.

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