Why should people consolidate multiple bank and investment accounts as part of estate planning?

In short

Many clients accumulate multiple accounts at different banks over the years, creating unnecessary complexity.

Peter Raskin, Financial Planner at Raskin Planning · Estate Planning as an Expression of Love and Responsibility (Ep. 148) · Wealth Is In The Details Podcast · answer at 17:44

Key takeaways

• Many clients accumulate multiple accounts at different banks over the years, creating unnecessary complexity.

Quote to remember

“When we make the world easier for our heirs, when we make the world easier and more secure, we're showing them that we love them.”

— Peter Raskin

The full answer · about 4 min

Many clients accumulate multiple accounts at different banks over the years, creating unnecessary complexity. Consolidating to one or two accounts is a gift to executors and heirs, especially as people age and cognitive capacity declines, making it simpler for surviving family members to settle the estate and manage affairs.

Key facts

• Executor or personal representative job typically lasts 6 to 18 months
• Probate process can take 3, 6, 8, 18, or 24 months depending on complexity
• Federal estate tax threshold: $15 million for single individuals, $30 million for married couples
• Many clients have multiple accounts across different banks, ranging from 6 to 9 or more accounts
• Powers of attorney should be updated within 5 years

People, companies and topics mentioned

More answers from this episode

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• 15:05How can a revocable living trust help avoid probate and protect heirs?
• 15:50What is the difference between a revocable living trust and an irrevocable trust?
• 25:09What protections should be considered if children lack financial capacity or face personal risks from inheritance?
• 27:19How can trusts protect elderly people from financial elder abuse?