October 2020 E-Newsletter: Year-End Estate Strategies
Provided by Gardey Financial Advisors
Year-End Estate Strategies
With one year ending and a new one on the cusp of starting, many people will consider their resolutions—not their estate strategy. The end of the year is a great time to sit down and review your preparations. This “Estate Strategy Resolution” is even more important if you have a complicated estate that may need a higher level of attention after you have passed.
Call a family meeting.
Many people choose not to let their family know of their wishes or even who is appointed to handle the estate. While two-thirds of Americans say that the pandemic has brought them closer to their family, only 28% of those 65 and older have started discussing their estate strategy with their families.1, 2
You may be able to get ahead of any potential family issues down the line by discussing your wishes, what needs to be handled by your estate, and reviewing what you have in place. No one wants to think about their family members passing away, but an awkward conversation now may mitigate future problems.
Get organized.
Ensure that your documents are up to date and remain aligned with your wishes. Two things to consider are a financial power of attorney and a medical power of attorney. Both can play a role should you become too ill to make decisions.2, 3
Also, consider adding "Transfer on Death" or "Pay on Death" to your financial accounts, ensuring that your spouse or surviving relatives can have access to your accounts after you have passed.2, 3
Be flexible.
Tax law changes adjust and change over time. For example, the SECURE Act, which went into effect at the end of 2019, did away with "stretch IRAs." The change forced some to consider a new approach to that portion of their estate. Your estate strategy should be flexible enough to adjust to whatever happens.4
As you talk about your estate with your family and set your preparations in motion, the end of the year is a great time to connect with your financial professional, tax attorney, and estate attorney.
Gardey Financial Advisors may be reached at 989-791-3880 or peaceofmind@gardey.com
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Citations
1 News.BloombergTax.com, August 21, 2020
2 NYTimes.com, September 6, 2020
3 Kiplinger.com, June 16, 2020
4 CNBC.com, June 30, 2020