Planning Gaps

Designations

Legacy planning conversations aren't always easy, but they are some of the most important discussions to have. While families may live miles apart throughout the year, the holidays often bring everyone together. Beyond celebrating traditions and making memories, it's also an ideal opportunity to discuss a family's long-term financial future. Identifying planning gaps now, long before the holidays, can help ensure everyone is prepared to review key decisions when gathered together, giving a family greater clarity and confidence for generations to come.

One of the most common planning gaps we uncover during a life insurance policy audit is an outdated beneficiary designation. Major life events such as marriage, divorce, or the death of a loved one are obvious reasons to revisit beneficiary designations. However, the plan should also evolve as a family grows to include future generations or blended families. While minor children generally should not be named directly as beneficiaries, those designations may be updated as they become adults. Children reaching adulthood, as well as the birth of new children or grandchildren, are important milestones that should prompt a review of not only the life insurance portfolio but the overall estate plan.

Ownership designations deserve regular attention as well. Whether a life insurance policy is owned by an individual, a trust, or a business, it's important to ensure those arrangements continue to reflect intentions. Individual owners and beneficiaries should have appropriate contingents in place. If a trust is the owner or beneficiary of a policy, the named trustee should be reviewed periodically to confirm that the right person is serving in that role. Likewise, collateral assignments should be evaluated to ensure they are removed once the underlying obligation has been satisfied.

A life insurance policy is more than a financial asset; it's an important part of a family’s legacy. Regular reviews help ensure the family’s wishes are carried out, loved ones are protected, and planning remains aligned with their goals as life changes. The best time to update a plan is before something triggers its execution. If it has been a few years since a policy review, or if a family has experienced significant changes in life, now is the perfect time to revisit the strategy with an advisory team.

We welcome any questions or opportunities to assist you or your clients in achieving identified goals. We take pride in serving a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.