he start of a new year always brings a refreshed opportunity to evaluate your goals and take
stock of your financial health. Many of our clients use the month of February to refine their estate plans as a gesture of
supporting their legacy and loved ones for years to come. While you evaluate how to optimize
your estate plan, here are some ideas for you to consider:
1. Prepare the Heirs (and involve the professionals)
According to Institute for Preparing Heirs, over 70% of generational wealth transfers fail in the
first iteration, and nearly 90% of inherited wealth will not even reach the grandchildren. The best
antidote to ensuring your legacy is to adequately prepare your heirs. Key family figures, such as
your spouse and/or adult children, need to be involved, or at the very minimum informed, of your
estate plan. Choosing to involve professionals, such as CPAs or Wealth Planners may help
provide a neutral perspective and mitigate potentially uncomfortable conversations.
2. Consolidate and Secure
Estate planning includes organizing and protecting your documents in a secure location while
also allowing the right people to have access. This can be in a secured, password-protected filesharing platform with login information kept in a safe location.
3. Stay Proactive with Policy
Tax law changes may affect investing, estate planning, and charitable giving. Check with us to see if there may be any impacts to your long-term plan. You may want to stay proactive and make strategic adjustments ahead of any
proposed legislation if needed.
4. Consider Any Changes
It’s important to review your estate plan to ensure it is still in alignment with your legacy.
Whether there have been marriages, divorces, births, deaths, adoptions, or other major life
changes, you want to be sure that your estate plan reflects the most accurate representation of
the legacy you want to leave.
5. Charitable Giving
There are various tax benefits to supporting your favorite causes and you want to ensure that
your plan reflects the most updated tax laws. Whether it is non-grantor trusts, qualified
charitable distributions (QCDs), or bunching donations in a donor-advised fund, make sure your
loved ones and beloved charities are supported for the long run.
Estate planning is fundamental to any financial plan. If you would like to refine your legacy or
have any other questions, give me a call. I look forward to being of service.
If you would like to learn more about creating a financial plan for your family. Please watch our
Generational Wealth webinar is attached below.
Kind Regards,
Don Hershberger
Founder and President, PWM
Please note, changes in tax laws may occur at any time and could have a substantial impact upon each
person’s situation. While we are familiar with the tax provisions of the issues presented herein, as
Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should
discuss tax or legal matters with the appropriate professional.
Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating
to the deductibility of various types of contributions to a Donor-Advised Fund for federal and state tax
purposes. To learn more about the potential risks and benefits of Donor Advised Funds, please contact
us.
Every investor’s situation is unique and you should consider your investment goals, risk tolerance and
time horizon before making any investment. Prior to making an investment decision, please consult with
your financial advisor about your individual situation.
Any opinions are those of the author and not necessarily those of Raymond James.