Estate planning can be a sensitive process. Every decision you make will impact your legacy and loved ones. That’s why it’s recommended to work with different professionals to avoid costly mistakes.
So, should a financial advisor be among the professionals you hire?
Yes, they should. Having a financial advisor on your estate planning team can benefit you significantly, as they can help with:
Gathering assets
You should include all your assets in your estate plan. Forgetting one may create complications for your beneficiaries. While you can take inventory of your assets, a financial advisor can help ensure you have listed all tangible assets, such as houses, furniture, vehicles and jewelry, and intangible ones like intellectual property, stocks, life insurance policies, retirement plans and digital assets.
Additionally, they can help you assign values to each asset. They will assess your documents in-depth and work with other experts to include the fair market values of all assets.
Creating a personalized estate plan
It can be challenging to create an estate plan that meets your goals since you lack the expertise to do so. However, you can make your work more manageable by working with a financial advisor. They will spend adequate time with you to learn more about your needs and those of your family to help you draft an estate plan that prioritizes such needs.
Dividing the estate fairly
While you have the exclusive right to distribute your assets according to your criteria, a financial advisor can guide you on the most equitable way to do so without triggering high tax liability for your beneficiaries.
A financial advisor can be an advantageous member of your estate planning team. You should also consider legal guidance throughout the process to validate your decisions.