By Jeremy A. Wechsler, Esq.
Investment Advisor Representative
[email protected]
Are we done with freeze warnings and winter yet? Between that and allergy season, I think we are all ready for the weather to calm down. On a positive note, it’s an exciting time in Philly, as we have the Flyers and 76ers in the playoffs—Go Philly!!
This past weekend, I begrudgingly did some spring cleaning. Definitely didn’t enjoy it in the moment, but it felt good to finally tackle a few things I had been putting off. It reminded me of estate planning—everyone’s favorite subject (said in a very sarcastic voice).
Let’s be honest, nobody is rushing to update their estate plan. But just like that closet that slowly gets out of control over time, the same thing happens with your planning.
For many retirees, estate planning becomes something that was “done years ago” and then left alone. The problem is, life doesn’t stay the same. Assets grow, tax laws change, family dynamics evolve—and what once made sense may no longer reflect your goals or your current situation.
Some spring cleaning can go a long way. Start with the basics:
- Do you have a Power of Attorney, and has it been updated within the last 10 years?
- Are your beneficiary designations current (IRAs, 401(k)s, annuities, life insurance, etc.)?
- Take a look at your Last Will & Testament (or trust)—are your beneficiaries still accurate, and are you comfortable with your Executor?
- Are your assets titled correctly? For example, if you believe your home is jointly owned, does the deed actually reflect that?
These are simple items, but they matter more than people realize.
When it comes to estate planning, many folks want to leave their estate in good order and with less taxes, but they overlook the value of life insurance. Many people assume that once they stop working or their kids are grown, life insurance is no longer relevant. In reality, it can play a powerful role in a well-structured estate plan.
For starters, life insurance can provide tax-efficient wealth transfer. Proceeds are generally income tax-free to beneficiaries—and in Pennsylvania, also exempt from inheritance tax.
It can also help equalize inheritances. If one child is receiving a business, real estate, or another specific asset, a life insurance policy can help ensure other beneficiaries are treated fairly—without forcing a sale or creating tension.
Certain policies, particularly permanent life insurance or universal life, can also provide flexibility for long-term care planning. Some policies allow you to access a portion of the death benefit during your lifetime to help cover care costs. If care is needed, you have a resource. If not, the benefit still passes to your heirs tax-free.
And perhaps most importantly, life insurance creates immediate liquidity at death as the funds don’t go through probate. That can help cover expenses, taxes, or simply give your family breathing room.
The key is making sure everything works together. Estate planning isn’t just about documents—it’s about coordinating your assets, your tax strategy, and your overall goals.
So as you’re thinking about spring cleaning this year, don’t stop at the house. Take some time to review your estate plan. A few thoughtful updates now can make things significantly easier—and more efficient—for the people you care about most.