Legacy Planning Can Get Sticky

Legacy planning often isn't discussed until it's almost too late. Here are six sticky pitfalls you might face and strategies to steer clear of them.

Lack of communication

Everyone has different expectations. You may assume family members are on the same page, but that's often not the case.

Avoiding it: Host family discussions about your plans. Even if it feels awkward, sharing your intentions with your family can clarify expectations and minimize future disputes.

Not having the right documents

Without the right legal documents in place, your wishes might not be honored. Wills, trusts, and powers of attorney are all essential tools in your estate strategy.

Avoiding it: Consult with a knowledgeable professional to draft comprehensive documents tailored to your situation. Make sure you revisit them periodically—life events like marriage, divorce, or the birth of a child can all shift what you need.

Ignoring tax implications

Most people don't enjoy discussing taxes, but ignoring them can create problems. Estate taxes can take a hefty bite out of your legacy if you're not prepared.

Avoiding it: To ensure more of your assets go to your loved ones instead of the IRS, explore strategies with a tax advisor to minimize your tax burden.

Unclear beneficiary designations

Life insurance policies and retirement accounts often have beneficiary designations that supersede wills. If you haven't updated these designations, they might not reflect your current wishes, leading to unintended consequences.

Avoiding it: Regularly review and update your beneficiary designations, especially after major life changes.

Overlooking digital assets

Your online accounts, cryptocurrencies, and digital subscriptions all have value, and without a plan, they can get lost in cyberspace.

Avoiding it: Create a list of your online accounts and their associated passwords. Share this with a trusted individual, and consider addressing these assets in your estate documents for clarity.

Failing to seek professional help

Many people think they can handle legacy planning on their own. But the laws surrounding it can be complex. One wrong move may lead to significant issues later. <

b>Avoiding it: Don't underestimate the value of professional advisors. Work with yours to build a well-rounded plan that considers all aspects of your legacy.