Since the passage of the Tax Cuts and Jobs Act, people have felt confident that they’ll be spared an estate tax hit when they die. This might not be the case at all.
Our lives are increasingly digital. Many of us have gone largely paperless with bank and other financial statements. Bills of all kinds arrive by email and are paid online. Our photos, music, movies, and documents sit on phones and computers and are backed up to the cloud. We spend substantial portions of our days on Facebook, using Gmail, listening to Spotify, networking through LinkedIn, scrolling through Twitter, buying on Amazon, and on and on. Well, what happens to all this when we pass away?
Creating a will or trust is a vital part of anyone’s estate plan, but it’s not where the planning ends. Ensuring that the beneficiaries you’ve listed on 401Ks and other retirement accounts, insurance policies, annuities, etc., are coordinated with those estate planning documents is essential to the success of that plan.