MYTH No. 4: I don’t have to coordinate my retirement accounts or insurance policies. Many people believe that since their IRA accounts and insurance policies are controlled by beneficiary designation (rather than by the terms of a Will), they do not need to coordinate these assets with their overall estate plan. But these assets – which are often a substantial portion of an individual’s wealth – should not be treated as outliers. IRAs and insurance should be carefully coordinated into an estate plan that incorporates many future contingencies. Furthermore, if an estate plan involves trust planning, it is even more important to get professional advice on the coordination of all beneficiary-designated assets.
