If you’re a business owner or high-net-worth individual, you’ve likely spent time with attorneys, CPAs, and financial advisors to build your estate plan. You have trusts, wills, insurance policies, business agreements, and maybe even a buy-sell agreement.
That’s a great start. But here’s the issue: Just having these documents isn’t enough.
If your estate plan is built in silos and not reviewed together over time, they can end up conflicting with each other leading to avoidable taxes, family disputes, and costly legal problems.
Real-World Mistakes That Could’ve Been Prevented
A client’s Will left everything to his current wife—but an old 401(k) still listed his ex-wife. The account went to the ex because beneficiary designations override wills. A simple update could’ve avoided a painful, permanent mistake.
A business owner died with a 15-year-old buy-sell agreement based on outdated valuation. The agreement forced the sale of his shares at a fraction of the current value, and there was no insurance in place to fund the buyout. His family got far less than they should have, and even had to wait years to be paid out.
A couple started gifting assets to their children and funding a family investment account, but none of this was coordinated with their trust or tax advisor. When the second spouse passed, confusion over ownership and outdated trust language caused delays, an IRS audit, and lost step-up in basis—creating a large, unnecessary tax bill for the kids.
These aren’t rare occurrences. Unfortunately, we hear about versions of them all the time.
These aren’t “we’ll deal with it later” issues. They’re critical risks that can undo years—sometimes decades—of effort and planning. The good news? They’re almost always preventable.
How to Avoid This Costly Mistake
Life changes—so should your estate plan documents. Marriage, divorce, business growth, grandkids, selling property… each one is a trigger to review and update your plan. At Life Moves Wealth, we review these every 3–5 years or sooner if life events happen.
Don’t let your CPA, attorney, and advisor operate in silos. Coordinate their advice and decisions. We love bringing everyone to the same table when there’s a major decision or potential risk on the table.
They control where retirement accounts and insurance go, regardless of what your will or trust says. We revisit these designations every year and any time your family structure or major assets change. When a trust is part of your plan, we make sure it’s filled with the right assets so it actually works the way it’s designed.
Your business likely doesn’t look the same as it did five years ago—so why should your agreements? We recommend a business valuation every few years and a fresh review of your buy-sell and operating agreements after periods of sizable growth, partnership or key personnel change, or slowdown.
Store all important estate plan documents in one place, and make sure key people know how to access them. We store secure digital copies for clients and encourage families to share access with those named in their documents.
Bottom Line
You’ve worked too hard to let poor coordination sabotage your financial legacy.
It’s not about having more documents—it’s about having the right ones, all working together.
If it’s been a few years since you’ve reviewed your estate plan strategy, or if you’re unsure whether your legal and financial plans are aligned, let’s talk. A second set of eyes might be the best investment you make this year. Schedule your no-obligation consultation.
Disclosures
Life Moves Wealth Management is a registered investment advisor offering advisory services in the States of Arizona and Indiana, and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.
The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site.
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Author: Dale Shafer II, CFP®, CBEC®, APMA®
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