Asset alignment is a crucial step in ensuring your estate plan functions as intended. It involves making sure all of your assets are properly titled and beneficiary designations are filled out in compliance with your estate plan. This is one of the most critical parts of the estate planning process, as it helps prevent complications and ensures your wishes are carried out smoothly.
To clarify key terms:
Asset Alignment: The process of structuring your assets to align with your estate plan.
Asset Inventory: A comprehensive list of your assets, their value, and how they should be titled or beneficiaries designated.
Asset Verification/Confirmation: Documentation that confirms changes have been made, such as account or policy numbers, proof of retitling, or updated beneficiary designations.
Proper asset alignment includes retitling bank and brokerage accounts and updating beneficiary designations for retirement and life insurance policies. Unique assets may require a more strategic approach, making it highly advisable to consult with your estate planning attorney.
Managing multiple accounts can be complex, which is why consolidation plays a vital role in effective estate planning. Lost or forgotten assets are at risk of going through probate—a process we aim to avoid. By consolidating and properly aligning your assets, you ensure a seamless transition for your loved ones.
The importance of asset alignment and maintaining an up-to-date asset inventory cannot be overstated.
