VIEWPOINT: Estate planning is a key component of financial wellness

As we enter National Estate Planning Awareness Week (Oct. 21-27), this is a good time to help the public understand what estate planning is and why it is such a vital component of financial wellness. A Roper poll commissioned by the American Institute for Certified Public Accountants found that two-thirds of Americans over age 65 […]

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As we enter National Estate Planning Awareness Week (Oct. 21-27), this is a good time to help the public understand what estate planning is and why it is such a vital component of financial wellness. A Roper poll commissioned by the American Institute for Certified Public Accountants found that two-thirds of Americans over age 65 believe they lack the knowledge necessary to adequately plan for retirement, and nearly one-half of all Americans are unfamiliar with basic retirement tools. These findings have been validated by recent studies, including a national poll by the Bipartisan Policy Center, which showed a poor understanding of what retirement actually looks like. Further, many Americans are unaware that a lack of estate planning and “financial illiteracy” may cause their assets to be disposed of to unintended parties by default through the complex process of probate. The U.S. House of Representatives established this awareness week for the third full week of October each year in partnership with the National Association of Estate Planners & Councils (NAEPC) in order to share how careful estate planning can greatly assist Americans in preserving assets built over a lifetime for the benefit of family, heirs, or charities. The work of estate planning involves many considerations, including the safekeeping of important documents, documentation of assets, preparation of legal instruments (for example: wills, trusts, powers of attorney), insurance, charitable giving, designation of beneficiaries, and how a person will be cared for during their lifetime. Creating your estate plan during your lifetime can prevent beneficiaries from being subjected to complex and time-intensive legal and administrative processes. It can also greatly reduce confusion or even animosity among family members and heirs upon the death of a loved one. If you seek advice and guidance with regard to your estate-planning needs, please view the NAEPC website (https://www.naepc.org) and search for an accredited estate planner (AEP)(https://www.naepc.org/designations/estate-planners) or estate planning law specialist (EPLS) designation holder (https://www.naepc.org/designations/estate-law/introduction) in your area. These practitioners have taken steps to further the requirements of their primary discipline by obtaining and maintaining professional designations backed by ongoing continuing education, ethics, membership, and maintenance requirements. As additional resources, you may wish to contact an estate planning council (https://www.naepc.org/membership/find_council) in your community for a referral or view the NAEPC brochure, A Consumer’s Guide to Collaborative Estate Planning (https://www.naepc.org/assets/national/files/Update%20Consumer%20Tri%20Fold%2010_2023.pdf). For information on how to incorporate charitable giving into your estate plan, visit the 5forCNY website at 5forCNY.org    
Tom Griffith is VP of development at the Central New York Community Foundation and serves on the board of directors for the National Association of Estate Planners & Councils (NAEPC).
Tom Griffith: