End-of-Year Estate Planning

As of the writing of this article, in late October 2024, many of our clients had already begun end-of-year financial planning conversations. Year-end is a great time to review your financial plan and make sure you are still on track with your financial, life, and estate goals.

If you don't already have these plans, now is also a great time to create them! Did you know that helping clients begin and work on their legacy plans is one of a financial advisor's most important jobs? Astonishingly, according to Gallup's research, slightly less than half of U.S. adults (46%) have a will that describes how to handle their money and estate after death.

The unique challenges faced over the past several years have impacted many people's lives in countless unexpected ways, causing changes in personal lives and reprioritizing personal objectives. Additionally, changes in individual and family circumstances can also have a direct impact on your estate plan.

Here are some sample situations that may also require plan updates:

• Marriage or divorce;
• Birth or adoption of a child, grandchild, or great-grandchild;
• Retirement or loss of job;
• Death of spouse or other family member;
• Illness or disability;
• A child or grandchild reaching the age of majority;
• Significant changes in the value of your portfolio and other assets;
• Purchase or sale of property.

Estate planning is an umbrella term used to describe multiple documents that help outline your healthcare desires, how you'd like your assets and possessions distributed, and even who you'd like to care for your children and dependents. Essentially, it is a road map for ensuring your wishes are followed when you pass away or cannot make decisions for yourself.

No one likes to think about their mortality and end-of-life decisions, but estate planning doesn't have to be a grim experience. It can be empowering as you secure your legacy and fulfill your wishes after you are gone. Having an estate plan is among the most important things you can do for your loved ones.

A comprehensive estate plan can help you feel more confident about the future, knowing your loved ones will be taken care of and that the legacy you leave behind is the one you want. Thoughtful planning now can help minimize taxes and ensure your family will have less to worry about when you are gone; failing to make plans for your estate can lead to unintended complications.

No matter the age or circumstance, losing a loved one is difficult. Properly establishing an estate plan can help relieve potential emotional and financial burdens. Failing to plan leaves our loved ones in mourning and may also leave them dealing with unintended, complicated financial or legal issues.

Along with your financial advisor, working with an estate planning attorney and your tax advisor on your estate plan is essential. A competent attorney will help guide you through creating or updating fundamental estate planning documents. These often include a will, health care proxy, and durable power of attorney. Your tax advisor will help with any associated tax issues.

Ultimately, your attorney, financial advisor, and tax advisor should help you communicate your wishes, avoid mistakes, minimize taxes, and adjust your plan over time or as your circumstances change.

For over 30 years, the salaried advisors at Physician Wealth Advisors have been creating customized financial plans and tailored investment strategies precisely to fit the needs of physicians and their families. If you want to see what Physician Wealth Advisors can do for you, call 801-747-0800 and schedule your financial consultation today.

Source: Gallup “How Many Americans Have a Will?” 23 June 2021, https://news.gallup.com/poll/351500/how-many-americans-have-will.aspx