Do you own anything? If you answered yes, then you have an estate and it’s a good idea to plan for it. Many believe that estate planning is only for the wealthy…those with mansions, fine cars, and plenty of money. However, an estate consists of any property we own…land, houses, cars, bank accounts, jewelry, etc. If you want these assets transferred to your loved ones, with minimal trouble and complexity, take the time to do some estate planning. Also, an estate plan can minimize or eliminate family squabbles and hurt feelings when you’re gone by defining exactly what your wishes are.
What is an Estate Plan
An estate plan is the legal process and documents that protect assets and personal property and defines exactly how you want those assets to be distributed when you’re gone. It not only defines your wishes, but also names the person(s) that will speak and act on your behalf when you’re not here to do it yourself.
What is Included in an Estate Plan
A well-done estate plan includes a will, power of attorney, medical power of attorney, a living will and possibly a trust. These documents are the specific directions that you create to do things that you are unable to do either because of incapacitation or death. They specifically docum
ent your wishes and who is legally able to carry out those wishes if you are unable to do so.
What are Five Important Functions of an Estate Plan
Asset protection-An effective estate plan may minimize or eliminate unnecessary taxes and legal fees associated with the probate process
Expedite asset distribution-Minimize or eliminate the delays of probate
Document your specific instructions and wishes-Avoid confusion and family disagreements associated with no, or an incomplete estate plan
Appoint the person(s) that will carry out your instructions and wishes-Allows you to name a responsible, trustworthy person(s) to carry out your wishes during your lifetime and after
Maintains privacy-Probate is a public process. Anyone can see what you owned and who you left it to when you passed away. If you’re okay with anyone knowing your family’s business, this isn’t an issue. Most however, prefer to keep it private
Tips for Getting Started on Your Estate Plan
Document your as
sets, both financial and personal as well as all your liabilities
Ask for a referral to a reputable and experienced estate planning attorney
Consider your beneficiaries, both people and institutions you care about
Don’t just start the process, finish the process
How Your Investments and Insurance Can Help with Estate Planning
Effective estate planning extends beyond the plans and documents that are generated because of the process. Titling of accounts, what you own, and who you work with are crucial components of an effective estate planning process.
A simple change from an individual account registration to a Payable or Transfer on Death account registration may allow your loved ones to promptly receive their inherited assets and avoid the delay
and expense of probate.
If you decide to create a trust, don’t forget to fund the trust. This means titling assets in the name of the trust. Again, work with experienced financial and legal professionals to decide what should and what shouldn’t be titled to the trust.
If you are financially able, converting tax-deferred accounts (traditional IRAs) to tax-free accounts (Roth IRAs) can help you maximize the value of the assets that you pass down and minimize the tax burden that may come with them.
Being adequately insured, life and long-term care will help preserve your assets for future generations and provide additional assets that may help pay final and other miscellaneous expenses.
Finally, an experienced financial professional can help you grow and protect the value of your estate while also serving as your guide to getting the information you need and connecting you to various other legal and tax planning professionals.
Of course, LakePointe Advisors is prepared to help and there is never a charge for an initial conversation. We would be privileged to have a no-pressure, no-obligation conversation to see if we fit with what you need.
Live Well-Retire Better™
is a non-traditional financial planning process that was developed based on my philosophy that you don’t have to choose between enjoying the
pleasures of life while working and saving for a comfortable retirement. Although nothing is guaranteed, with commitment, discipline, and careful planning, you can enjoy the comforts of life now, AND when you retire.
If you’d like to talk about The Live Well-Retire Better™ method of financial planning, or have questions or concerns, please set up a call. There is never a charge or any obligation for an introductory conversation.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.
Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker-dealer and Registered Investment Advisor. Cetera is under separate ownership than any other entity.
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