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The reality is that many any people are afraid to talk about life insurance, wills, and estate planning because they do not want to think about their demise.
The ever avoided conversation about Estate Planning doesn’t have to be scary or intimidating. An Estate Plan is a Legacy Plan that preserves the wealth we worked hard to create. It includes existing assets or cash through life insurance. An estate plan ensures that wealth we created lasts beyond one generation.
Having an estate plan in place reduces the likelihood of families having to deal with the financial burden of loved ones’ death. It also minimizes or eliminates arguments over the final affairs and assets.
The fact is that adults need proper legal documents to protect them and those who depend on them. Parents with minor children need to have at least a Last Will and Testament and guardian nominations.
However, there is a misnomer that it requires lots of money or assets to have an estate plan. Estate planning is not about having lots of money; it’s about keeping control over what you have worked hard to attain. Otherwise, the government (state law) will make those decisions for you.
So, let’s get excited about building a Legacy plan to create generational wealth by using these three easy areas of the estate planning process.
Designation
In the event of you are incapacitated and can’t handle your own medical, financial, or legal affairs while hospitalized or disabled, choosing a trustworthy and responsible person to step in to manage things is crucial.
If you have minor children, designate a temporary guardian to care of your children so that they will not be placed with someone you don’t know, trust or in the wrong hands.
Having disability insurance or life insurance with living benefits can protect your family’s financial stability. The financial benefits replaces lost income during unexpected illnesses or accidents that cause short term, long term, or permanent disability. Contact your trusted insurance agent for affordable options and eligibility requirements.
Asset Allocation
It’s not a question of if, but when we are going to pass on. A Last Will and Testament or Living Trust allows you to determine who and how your assets will be allocated, transferred, and managed over time. If a Will or Trust is not in place, the state can make the decisions for your property and children.
It is crucial to properly designate beneficiaries of life insurance, retirement accounts, and trusts. Never leave minors as beneficiaries on these accounts. Those funds could be held up in court for years or at least until they turn 18 years of age.
If a significant amount of money will be left through assets or life insurance, a Living Trust allows you to control how the funds will be disbursed to the beneficiary. Contact an experienced estate planning attorney to discuss your options for designing a Living Trust that fits your desires.
Transfer of Tradition
Most people overlook the significance of transferring tradition. It is essential to leave your family with something tangible that they can cherish for generations such as a letter to loved ones, a photo album, or recorded video giving your insights and advice.
Also, protect your online legacy. Leave your usernames and passwords to all of your social media accounts to a trusted family member or friend to shut them down.
Review and update your Legacy Plan at least every 3 to 5 years or when life changes occur. Life changes include moving to another state, additional of children or grandchildren, change in marital status, divorce or death of a spouse, or receiving a substantial inheritance.
It’s time to get excited about building your Legacy Plan!
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