The life insurance component solved the second part of the conundrum by enabling assets to pass to each spouse's biological children income-tax free. "With this in place, they could enjoy a comfortable retirement without worrying about inadvertently disinheriting their children," noted Wilson.
Although beneficiary designations typically supercede a will, the couple was also advised to meet with an attorney to create the necessary wills to ensure their legacy goals were met.
"It is important to dive deep into family dynamics when meeting with clients, to understand what their true wishes are and why," Wilson stressed. This couple "knew what they wanted," but not what could potentially happen to derail their plans. "We built a plan for them that accomplished their goals as well as provided flexibility. ... Beneficiary arrangements for retirement plans and life insurance can be changed and updated relatively easily if the situation changes."