The Gift That Keeps on Giving
Your Year-End Legacy Resolution
As the year winds down, most people are thinking about New Year’s resolutions. But there’s another resolution that deserves your attention—one that’s arguably more important: your Legacy Resolution.
Everyone has assets worth protecting. Even if you think you don’t, you do. The question is: will you decide how those assets are distributed, or will the state decide for you?
Why Estate Planning Matters
Let’s be honest—estate planning isn’t most people’s idea of fun. But it’s essential to ensure your assets transition as smoothly as possible to your loved ones. According to a 2023 Caring.com survey, 67% of Americans don’t have a will. That means two-thirds of us are leaving critical decisions about our assets and loved ones to chance—and to the state.
Without proper planning, the state steps in with its own timeline, fees, and logic. Consider what happens when there’s no plan: A family waits 18 months in probate court to access their father’s bank accounts—accounts needed to pay his final medical bills and mortgage. Meanwhile, legal fees consume thousands of dollars that could have gone to his children. The choice is yours: plan it yourself or let the state plan it for you.
Five Simple Steps to Secure Your Legacy
Review and update your estate plan. If you don’t have one, get one now. Estate plans should be reviewed regularly to reflect life changes. A divorce 15 years ago, a new grandchild, a moved state—any of these can render an old plan obsolete or even harmful.
Evaluate your life insurance coverage. Liquidity matters, especially when it’s needed quickly. Depending on when you purchased your policy and current interest rates, you may be able to reduce premiums or increase coverage. If you lack permanent life insurance, consider securing it now—it’s far better than leaving your family to fundraise in a crisis. Real scenario: A successful business owner passed away suddenly at 52 with no life insurance. His family had to launch a GoFundMe campaign to cover funeral expenses while his business assets sat frozen in probate. Preventable and painful.
Update beneficiary designations. Ensure all financial accounts have Transfer on Death (TOD) or Payable on Death (POD) designations, and verify that retirement accounts list current beneficiaries. Common mistake: A woman’s $500,000 IRA still listed her ex-husband as beneficiary—a designation made 20 years earlier that was never updated after her divorce. Despite her will leaving everything to her children, the ex-husband received the entire IRA. Beneficiary designations override your will.
Establish or update your advanced directives. Create a living will and healthcare power of attorney to document your medical wishes and appoint someone to make healthcare decisions if you’re unable to. Without these, family members may face agonizing decisions without knowing your preferences—or worse, end up in legal disputes over your care. Consider this: Without advanced directives, family members may disagree about medical treatment during a crisis, leading to court intervention, emotional turmoil, and decisions that may not align with your values.
Align everything. Review steps 1-4 to confirm they work together cohesively. Conflicts between your estate plan and beneficiary designations can create costly delays and disputes.
Your Next Step
The greatest gift you can give your loved ones this holiday season is a well-organized legacy plan. It starts with taking action today.
Need help? Contact us for an independent, comprehensive review of your estate and legacy plan.