Summer Is Made for Sun, Fun and Estate Planning Conversations

A mom and daughter sit together outside on a bench.

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A staggering $84 trillion will switch ownership from now till 2045, according to a report from Cerulli Associates. Though nearly $12 trillion of that will go to charity, the rest will be transferred directly to heirs.

Summer isn’t just a time for sunshine and travel — it’s also when families come together, making it the perfect time for conversations that matter the most.

As your family gathers over the next few months, it creates an opportune time to engage in conversations about estate planning and ensure you, your assets, your family and your legacy are protected.

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The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

Understand what you own and how assets transfer

There is no sense of growing your estate if it will just be eaten up by income taxes, so it’s paramount that you understand what investments you own today and how they transfer to loved ones upon passing.

It’s common to think, “I have a living trust. Everything will be fine.” However, this is not true because not all assets pass through a living trust and can’t be registered in a living trust.

Additionally, not all assets are taxed the same way, so you need to understand not just how they pass on to loved ones but how they will be taxed to them.

Build a thoughtful estate plan

Once you know your investments and understand how they transfer upon passing, it’s essential to create a will to name beneficiaries and guardians for any minor children.

Different states vary on the types of will that are valid, so it’s important to understand the applicable laws.

A complete estate plan includes a living trust, an advance directive for your medical care wishes, a designated power of attorney, a pour-over will and more.

Keep your plan up to date

Estate planning is fluid and dynamic and needs to have eyes on it at all times.

The first thing you should do is check to see if your living trust is up to date with the current laws. It makes sense to check in with the person who put together your trust every few years to ensure it’s up to date.

The second step is to gather the statements of your investments that should be in your trust to confirm that they are.

These assets include checking, savings and CD accounts, as well as investment accounts that are not registered in the form of a retirement account, such as an IRA, 401(k), 457 plan, etc.

Assets in retirement, annuity and life insurance accounts are passed down through a beneficiary designation. Periodically check and update these beneficiary designations as needed.

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Print copies of these financial statements and store them in a safe place. It’s smart to also scan them to your computer so they are saved digitally.

Finally, ensure that other family members know where these documents live in case they need access.

Re-evaluate and discuss

As life circumstances change, make time to update your estate plan and discuss the updates with your loved ones.

Honest conversations with loved ones about the elections you made help to ensure a smooth transition. Losing a loved one is difficult, and conversations ahead of time can help limit any conflict between beneficiaries regarding assets.

Conclusion

These steps ensure that your assets are passed on to loved ones in an efficient and protected manner.

While you gather with loved ones this summer, use that time to have important planning conversations. The most important part of an estate plan is getting started — and there’s no better time than now.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Eric is a prominent figure in the Long Beach community, where he has made significant contributions both professionally and philanthropically. As the President and Founder of Octave Wealth Management, Eric has steered his financial planning practice to new heights since its rebranding and expansion in 2024. His career, which began in 1997, has been marked by a steadfast dedication to excellence, reflected in the success and growth of his practice.