Estate planning is a pivotal aspect of financial planning. However, it is often overlooked because most people think it is for the rich. But estate planning should be considered by everyone as it can help in securing the future of your loved ones.
You might think that only the best estate attorneys can aid you with estate planning. In that case, you should know that even your financial advisor can help you out.
Read this article to find out how your financial advisor can help you with estate planning.
1. Reviewing Beneficiary Designations
Beneficiary designations are common in insurance policies, retirement accounts, and investment accounts. It helps in determining what will happen to your financial assets after your demise.
The beneficiary designations need to be reviewed from time to time. Your financial advisor is responsible for taking care of your insurance policies and investment accounts.
Therefore, your financial advisor will be able to identify discrepancies between your beneficiary designations and estate planning paperwork.
2. Double-check Estate Planning Documents
Your financial advisor can help in translating the legal documents into simple words. It will help you understand the terms and conditions on the paperwork, which you might have misunderstood.
● They can help in pointing out situations where your estate plan might be at risk. The financial advisor will have a proper idea about your financial intentions.
● So, they will be able to recommend some changes that can make your estate plan more effective.
3. Pointing Out Life Changes Impacting Estate Plan
You might go to your financial advisor after every massive life event to find out what it means for your finances. So, they will be aware of the significant events in your life, such as divorce or remarriage.
In such a situation, the financial advisor will be able to point out how these events are impacting your finances. They will also help you do the necessary things, such as taking social security benefits that should be done as part of your estate planning.
4. Retirement Planning
Estate planning also revolves around ensuring that your retirement plans are concrete. The financial advisor will be able to provide you instructions regarding handling your retirement accounts.
● You should ask your financial advisor to explain your beneficiary details. It is also crucial for you to understand tax benefits.
● The financial advisor should be able to guide you regarding financial goals and budgets. People often think that estate planning becomes important only after your death.
However, estate planning also helps you during your lifetime. Therefore, you should choose a financial advisor to aid you with your retirement plans.
5. Planning Long-term Care
Estate planning is done with long-term care in mind. Some people choose trusts or insurance to cover medical expenses in the future.
● On the other hand, some people wait till they need the care to begin Medicaid planning. A financial investor’s job is to help you with financial ramifications to receive long-term care.
● A financial advisor should provide you with worthwhile solutions according to your financial situation. However, it is crucial for the financial advisor to examine the impact of their recommendations on your estate plan.
Tips To Select A Financial Advisor
Your estate plan needs proper advice from a financial advisor. However, you need to be careful about selecting a financial advisor.
1. Consider The Reputation
Before hiring a financial advisor, you should find out about the reputation of the financial advisor. The financial advisor can be trusted if they have a good reputation among clients. You should check the reviews received by the financial advisor before hiring them.
If a financial advisor has good reviews, they can be trusted with giving accurate advice. However, bad reviews are an indication to look for other financial advisors. You should also verify how many years of experience the financial advisor has.
2. Compare The Charge
You might think that a financial advisor charging a higher fee will ensure that the financial advisor can be trusted. However, it may not be true all the time. You need to find out more about the financial advisor before taking their services.
● You should talk to more than one financial advisor before hiring one of them. The goal should be to find a financial advisor who offers quality services at an affordable rate.
● You can even take recommendations from people you know to end up with an efficient financial advisor.
It might be your first time finding an estate lawyer. So, you can take advice from your financial advisor and find a good estate lawyer. It is crucial for you to involve only trusted people in your estate planning.
Even though you should not take legal advice from your financial advisor, they can help align your estate planning activities with your estate planning wishes.