According to recent data, the majority of American investors in committed relationships say they trust their significant other and that both partners share the same retirement goals. However, over half of them have not yet put an estate plan in place.
According to Ameriprise Financial’s “Couples, Money & Retirement” report, which was released earlier this year, 95% of couples agree they are honest and transparent with each other about their finances, with 91% reporting that they share the same financial values.
Even so, many have not reached an agreement when it comes to a number of emotionally-charged decisions related to money.
The survey polled over 1,500 American couples with $100,000 or more in investable assets, primarily between the ages of 45-70 who have retired within the last 10 years or who plan to retire in the coming decade.
The report found that while 93% of couples agree on when to retire and share similar goals for retirement, 24% shared that they have not reached a consensus on how much money they will need to save or how much they wish to spend on children and grandchildren, both in the present and as part of their estates. 52% of couples surveyed also shared that they have not set up an estate plan.
Marcy Keckler, who is the senior vice president of financial advice strategy at Ameriprise Financial as well as a certified financial planner, has this advice to offer for couples who still need to set up an estate plan:
1. Don’t be intimidated by the concept of estate planning
“Estate planning is for everyone, no matter their wealth or complexity of their financial situation,” says Keckler. “At some point, all of us will need an estate plan.”
She explains that estate planning is about making decisions about what you want to happen after you die or if you become incapacitated (even temporarily) and can’t make health-related or financial decisions on your own.
2. Engage professionals
“A qualified financial adviser and estate planning attorney can help you initiate important, yet often emotional conversations and ensure you have decisions documented to cover a variety of potential scenarios that may arise.” Keckler continues, “Guidance from professionals can ensure your wishes for the legacy you want to leave your heirs and other loved ones are carried out.”
She recommends choosing professionals who are willing to collaborate. According to Keckler, one of the biggest mistakes couples can make is specifying beneficiaries in a will but forgetting to update their accounts in order to identify the correct beneficiary.
Keckler points out that financial advisers and attorneys can work together to make sure you have done everything necessary for your plan to be executed according to your wishes.
3. Once you complete your estate plan, be proud of yourself
“Estate planning is an important part of protecting your family and financial legacy,” says Keckler. “It’s a big accomplishment that should be celebrated once it’s completed.”
Her advice is to make sure that you know where the original documents as well as physical or digital copies of documents are in the event they become needed.
“If you have a doctor or hospital of choice, send them a copy, so they can keep it on file,” she says. “This can save valuable time and stress you or a loved one would otherwise spend trying to find them in an emergency.”
4. Revisit your estate plan at least every five years, and more frequently if a big life event happens
“Estate plans need to be updated as your life evolves to ensure they reflect your wishes,” shares Keckler. “Moments in life such as the birth of a child or grandchild, major shifts in income, a divorce, acquisition of new property and a child reaching the age of 18 are a few examples of when your estate plan may need to be revisited.”
For help with your estate plan, contact us at Wilson and Wilson Estate Planning and Elder Law, LLC at 708-482-7090.
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