By D’Angelis Wealth Management
No one likes to think about dying. However, the legacy planning process requires you to look ahead and consider the financial details your loved ones might have to handle after your death.
Creating your estate plan can be complex, so there’s always a chance you could leave out a detail or two by mistake. Here’s a closer look at five of the most overlooked and mishandled details.
1. Up-to-Date Beneficiary Designations
One of the most important parts of legacy planning is keeping beneficiary designations current. These are some of the most common types of accounts that allow an account holder to designate a beneficiary:
- Life insurance policies
- Retirement accounts
- Transfer-on-death (TOD) accounts
If beneficiaries aren’t updated before the account holder dies, the funds may go to someone other than the intended person.
Here’s an example. Suppose you list your spouse as a beneficiary on your life insurance policy and retirement accounts. You divorce and remarry. You update your will to leave your assets to your new spouse, but you forget to update beneficiary designations on the accounts themselves.
If you die before updating your accounts, the funds may be awarded to your former spouse—the beneficiary actually listed on the account—regardless of what your will says.
To reduce the risk of this unfortunate predicament, you should make a habit of revisiting your estate plan with a legacy planning attorney after major events like divorce, death, and remarriage.
2. Online Financial Accounts and Passwords
Most people don’t leave their bank account out of their estate plan. However, if you have a crypto wallet, PayPal or Venmo accounts, or accounts with investment apps, you should provide your loved ones with a list of your accounts and login information. If you don’t do this, your loved ones may have no way to access the funds after your death.
3. Old or Forgotten Accounts
For many people, it’s all too easy to forget about smaller retirement plans from past jobs, older savings bonds, and even small investment accounts. During the legacy planning process, double-check that you’ve included all of your accounts.
If you neglect to name one or more accounts in your estate plan, the funds may go unclaimed. This problem is far more common than you may think. The New Jersey Unclaimed Property Administration (NJUPA) and similar agencies in other states hold millions of dollars in unclaimed funds.
4. Subscriptions and Automatic Bill Payments
One of the main goals of legacy planning is to preserve as much of your wealth as possible for future generations. If you don’t create a list of automatic payments for your heirs, your estate may be reduced as funds continue to leave your account.
These are some of the most common types of subscriptions and payments people may forget:
- Streaming subscriptions
- Credit cards
- Utilities
- Charitable donations
For the executor of your estate, it can also be confusing to see money disappearing from your account after your death. By taking the time to note all automatic payments as part of the legacy planning process, you can save your loved ones considerable stress.
5. Joint Accounts and Co-Signed Financial Obligations
If you share a joint bank account with someone, the account terms may dictate that after your death, all funds go to the other holder. In a similar vein, if you co-signed a loan, the other co-signer may be left fully responsible.
When you’re aware of these common challenges, your legacy planning lawyer can help you adjust your estate plan so you don’t accidentally disinherit someone or saddle them with a debt they can’t pay.
Let Us Help You Tackle the Legacy Planning Process
Your financial situation is unlike anyone else’s, and that means your legacy plan should be unique to you. At D’Angelis Wealth Management, we’re personally invested in the success of each one of our clients, and we can help you avoid some of legacy planning’s most common pitfalls.
If you’re ready to start legacy planning or you just have questions, get in touch with us. To schedule a meeting, call (551) 284-9844or email michael.dangelis@lpl.com.
About D’Angelis Wealth Management
D’Angelis Wealth Management is a family-owned, independent financial advisory firm located in Bergen County, New Jersey, just 16 miles from New York City. With over 85 years of combined experience, the firm specializes in comprehensive financial planning for pre-retirees and retirees. D’Angelis Wealth Management offers tailored strategies to help clients balance asset growth with stability as they seek to preserve their wealth while pursuing their ideal financial future.
Founded on the principles of trust, integrity, and personalized service, D’Angelis Wealth Management is committed to treating each client like family. Their mission is to create strong, lasting relationships while guiding clients toward financial clarity and independence. By employing a disciplined and precise advisory process, the firm develops customized financial plans that incorporate downside capture strategies to balance growth and safeguard retirement assets. This step-by-step approach includes understanding clients’ unique goals, crafting tailored solutions, implementing strategies, and continuously monitoring progress.
Leveraging the expansive resources of LPL Financial, D’Angelis Wealth Management provides a full spectrum of services, including financial planning, income planning, asset management, tax planning, estate planning, and more. Through their family-oriented and accessible service model, they empower clients to preserve wealth, gain financial confidence, and enjoy a stable and fulfilling retirement.
To learn more about D’Angelis Wealth Management, visit their website or call (551) 284-9844.