The Importance of Reviewing Your Planning Documents

Don’t wait until it’s too late…failure to review your retirement and estate planning documents can spell DISASTER for your beneficiaries yet this failure is surprisingly common.

Recently, a client discovered that her new husband hadn’t updated his beneficiary forms for his retirement plans. Unfortunately, the client didn’t find out until her husband passed away unexpectedly. A quick review of his important documents after his death revealed this huge mistake.

The good news in this particular case is that her deceased husband’s designated beneficiaries were all aware of his intentions to leave his retirement assets to his current wife. The beneficiaries in this case also plan to honor his wishes the best way they can (however, certain tax ramifications in this case cannot be avoided). Sadly, most stories don’t end this way and loved ones are often caught in the middle of family battles and even mired in litigation lasting several years.

Marriage, divorce, birth or death can occur at any time. Tax laws change or are updated on a routine basis. Even though you cannot predict what will happen and when it will happen, you can review your documents annually and update them as needed when any life changing event occurs or new legislation goes into effect that could impact you or your beneficiaries.

Review your beneficiary forms, custodial agreements, estate plans and anything else you may have in place to provide for and protect your loved ones at least once a year. An annual review will help ensure your assets will still flow the way you want them to and in the most tax efficient manner.

Your retirement distribution expert and tax professional can help you with these types of reviews. These reviews should set FREE services so don’t hesitate to schedule an appointment with your personal advisor(s) if you need guidance or assistance.