When people hear the words estate planning, they often think about writing a will.

A will is important, but it is only one piece of the puzzle.

The truth is, some of the biggest estate planning issues have nothing to do with legal documents. They happen because beneficiary designations, retirement accounts, and tax planning are not reviewed together.

Estate planning is about protecting your family, making your wishes clear, and helping your loved ones during a difficult time. It also helps make sure the financial plan you've worked so hard to build is carried out the way you intended.

A Good Estate Plan Covers More Than Legal Documents

Many people spend years saving for retirement and building their nest egg. They create a plan for income, investments, and taxes. But they often forget to make sure those plans work with their estate plan.

A complete estate plan may include:

• A current will or trust
• Up-to-date beneficiary designations
• A financial power of attorney
• A healthcare power of attorney
• An advance healthcare directive

Each piece serves a different purpose. Together, they can help provide clarity for you and your loved ones if something unexpected happens.

Did You Know?

Retirement accounts, such as IRAs and 401(k)s, and many life insurance policies generally pass directly to the person listed as the beneficiary. In many cases, those beneficiary designations take precedence over instructions in a will. That is why reviewing them regularly is an important part of an overall financial plan.

Don't Forget Your Beneficiaries

One of the most common estate planning oversights is forgetting to update beneficiaries.

Major life events such as marriage, divorce, the birth of a grandchild, or the loss of a loved one are all good reasons to review your beneficiary designations.

Keeping these forms current helps ensure your accounts reflect your current wishes.

A Common Oversight

Imagine a couple who updated their will after retiring but forgot to review the beneficiary on an old IRA.

Years later, the account passed according to the outdated beneficiary designation instead of what they expected.

Situations like this are one reason it is important to review your estate plan and your financial accounts together.

Estate Planning and Tax Planning Work Together

Estate planning is not just about passing on your assets. It is also about how those assets may be transferred.

The decisions you make during retirement can affect both your financial plan and the people who may inherit your assets. Strategies such as Roth conversions, tax-efficient retirement withdrawals, and charitable giving may help support your long-term goals, depending on your situation.

Because every family's circumstances are different, it is important to evaluate these decisions as part of a broader financial plan.

A Quick Estate Planning Checkup

Ask yourself these five questions:

☐ Have I reviewed my beneficiary designations within the last few years?

☐ Do my family members know where my important financial and legal documents are kept?

☐ Do I have current financial and healthcare powers of attorney?

☐ Have I discussed my wishes with the people who may need to carry them out?

☐ Does my retirement income plan still fit with my estate plan?

If you answered "no" or "I'm not sure" to any of these questions, it may be worth reviewing your plan.

The Greatest Gift Is a Clear Plan

Your legacy is about more than money.

It is about helping your family feel prepared during a difficult time. It is about making important decisions today instead of leaving uncertainty for the people you care about most.

While no plan can address every situation, having your financial, tax, and estate planning strategies working together can help provide greater clarity and confidence.

When Was the Last Time You Reviewed Your Estate Plan?

If it has been several years since you reviewed your estate plan, or if your family has experienced a major life change, now may be a good time to revisit it.

At MY Wealth Management, we do not prepare legal documents or provide legal advice. Instead, we help clients coordinate their retirement income strategy, investment plan, and tax planning with their estate planning attorney and CPA. Our goal is to help ensure these important pieces work together as part of a comprehensive financial plan.

A thoughtful review can help identify opportunities to update beneficiary designations, improve coordination among your financial professionals, and confirm that your current plan still reflects your goals.

As always, if you have questions about your retirement or estate planning, we are happy to have a conversation.

Thanks for being a part of MY Wealth Watch!
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​Keeping wealth in focus,

The MY Wealth Management Team