A new year brings with it an opportunity to reassess goals and address pressing items we may have been putting off. Creating a new estate plan or updating an existing one is important, yet is a frequently overlooked task on many to-do lists. The topic of death is one most people want to avoid. However, avoiding the topic does not give you the opportunity to choose how you would like to direct your estate and, even more drastically, can cause family strife and an undue tax burden.
After the difficult decision of asset distribution, you will need to appoint an executor. For many people, this could be a complicated decision. The role of executor, sometimes called a personal representative, is to ensure that your wishes are carried out and assets properly distributed. Understandably, this can be complex and time consuming. Simply defaulting to naming your eldest child, close family member, or good friend may not always be appropriate.
To protect your assets and ensure that your long-term wishes are carried out, utilizing a trust may be the best approach. The decision to name a corporate trustee is one that should be evaluated when creating your estate plan. A corporate trustee can ensure fidelity to your goals while providing impartiality and expertise. In addition, corporate trustees can alleviate the stress put on an individual friend or family member and help to reduce family strife.
You have built a legacy with the people and purposes that are important to you. Maximizing the benefit of that legacy should include consideration of potential federal and/or state estate or inheritance taxes. The degree to which your estate may be reduced by estate or inheritance taxes depends upon the value of your estate, your marital status, your state of residence, the state(s) in which your assets are located, and planning. There are many potential strategies that can be used to reduce the estate tax liability, from annual gifting to the establishment of trust solutions.
Finally, it is easy to overlook some of the minor aspects of your financial affairs, such as information on bank accounts, cell phone passwords, and the location of personal records or estate documents. D.A. Davidson Trust Company has created a comprehensive tool to assist you in compiling this information in one single location. By completing the What My Family Should Know booklet, you can eliminate hardships in the handling of your financials affairs. We suggest you keep the booklet in a safe place and make your personal representative aware of its location. Make sure to update it annually.
Remove “establish an estate plan” from your to-do list for the coming year. If the topic of estate planning is overwhelming, an experienced Trust & Fiduciary Advisor can provide guidance so that you and your family can lead comfortable, secure, and fulfilling lives. Reach out to D.A. Davidson Trust Company for more information.
This material is being provided for educational and informational purposes only. D.A. Davidson & Co. is a registered broker-dealer and registered investment adviser that does not provide tax or legal advice. Information contained herein has been obtained by sources we consider reliable but is not guaranteed and we are not soliciting any action based upon it. Any opinions expressed are based on our interpretation of the data available to us at the time of the original article. These opinions are subject to change at any time without notice. Copyright D.A. Davidson & Co., 2025. All rights reserved. Member FINRA and SIPC.