J.P. Morgan Wealth Management Wealth Advisor Jacob Pottschmidt shows how an estate plan can help create peace of mind for you and your family.
Chicago-based J.P. Morgan Wealth Management Wealth Advisor Jacob Pottschmidt helps his clients plan for their families' financial future.
Estate planning is often misunderstood. People often think it shouldn't happen until later in life or is overly complicated. Confusion comes from not knowing what estate planning really is: creating a roadmap for your loved ones. It can also evoke fears. Most of us don’t want to think about our mortality or discuss it with family or friends. But the process can be simplified and viewed more positively with the right guidance. And the time to start is now.
Chicago-based J.P. Morgan Wealth Management Wealth Advisor Jacob Pottschmidt helps his clients define their wishes for the future when they start planning, regardless of their stage of life. We sat down with Pottschmidt to dispel common myths, better understand estate planning’s benefits, and learn how working with an advisor can help enhance your and your family’s financial future.
Myth: Estate planning is challenging.
“Most people understand the importance of having a plan for their finances looking ahead to retirement, but thinking beyond that can be daunting. It can be difficult to make decisions for after you pass because it feels very far off and scary. People also might not want to burden their loved ones.
“My job as an advisor is to make the process as simple as possible and walk clients through it step by step. Our clients are extremely busy, so we help liaise with a client’s attorney, tax specialist, family members and other partners to help make the process seamless. Someone might feel that they fully understand their estate planning wishes, but we need to ensure the plan is documented properly and clearly communicated to the right stakeholders. This is where an advisor can really add value.”
A wealth advisor can help make the estate planning process as seamless and simple as possible for their clients.
Myth: You don’t need to create an estate plan until after you’ve built wealth.
“A common misconception is that people don't need to worry about estate planning until after they've reached a certain asset threshold, but everyone should have a plan so that their wishes are respected after they pass and to eliminate surprises for loved ones. Financial situations, family dynamics and laws related to estate planning can always evolve, so we encourage our clients to have a plan early on. But know that the plan can change as their life and wishes change.”
Myth: Once you make an estate plan, it’s final.
“Plans evolve. Everyone should use any sort of life event as an excuse to revisit their plan. This can include the birth of a child, kids going to college, a career change, marriage, divorce or the passing of a family member. But even without a life event, people should refamiliarize themselves with their estate plan periodically in case their goals have shifted. This is where working with an advisor can be incredibly valuable. We make sure that a client’s plan is up to date and help them free up time to focus on other things.”
As life evolves, your estate plan should evolve with it.
Myth: Estate planning should be a personal conversation only between a financial advisor and the client.
“Estate planning is personal, but it’s critical to bring the right people together, including your spouse, children and any other beneficiaries. Proper estate planning helps avoid surprises for loved ones when someone passes. It’s important for your spouse and children to understand your wishes, where important documents are located and each of their roles as a beneficiary.
“When someone passes, financial decisions often need to be made quickly. It’s important the family knows who’s in the driver’s seat and that they have the necessary information to make decisions. Necessary information includes account information and contact information for a financial advisor, accountant, attorney and anyone else involved in the estate plan. In some situations, it’s also important to give family members context on the decisions you’ve made when developing the estate plan to avoid any questions or resentment after you pass. It’s important for your beneficiaries to be good stewards of your estate plan and to be ready for the responsibility.”
It’s crucial to bring the whole family into estate planning conversations.
Myth: The most important aspect of an estate plan is its tax efficiency.
“We often see people wanting to begin their estate planning process by focusing on the most tax-efficient plan possible. But the real first step is to outline goals for your wealth and the impact that you want it to have in the future. We encourage our clients to have conversations with their families to create a mission statement for their wealth. Plans for transitioning wealth should be part of this. If you dive into planning without a larger goal in mind, your plan may be tax-efficient but not truly reflect your personal wishes. We work with our clients to bring their family together to help them create a plan that aligns with their goals now and into the future.”
J.P. Morgan Wealth Management financial advisors are dedicated to educating their clients and helping them reach their goals. Throughout our “Build Your Wealth” article series, these advisors will provide valuable insight into ways you can help enhance your financial future.
Learn how to build healthy financial habits, how investing in your passions can pay off, smart ways to give back, best practices when distributing money through multiple generations and smart tips for business owners in the previous articles in this series, with more great content to come.
Take the first step by connecting with an advisor near you at this link.
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Certain advisory products may be offered through J.P. Morgan Private Wealth Advisors LLC (JPMPWA), a registered investment adviser. Trust and Fiduciary services including custody are offered through JPMorgan Chase Bank, N.A (JPMCB) and affiliated trust companies. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMS, CIA, JPMPWA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co.
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