Estate Planning

For some people, financial planning is mainly concerned with how best to go about building a nest egg, and how to make it last through retirement. But for many, there is a desire to ensure their estate delivers benefits beyond their own retirement, and produces a lasting legacy even after they have passed.

If you wish to leave a legacy, whether it’s for family and loved ones or a charitable institution, then you need an estate plan to ensure your legacy is carried out in line with your wishes. Without such a plan, strangers (the state, lawyers or individuals that don’t have your interests in mind) could determine what happens to your estate.

Several estate planning concepts may apply to your particular situation. Examples of topics that a good advisor can help you navigate include:

Wills: Wills are the cornerstone of an estate plan, allowing you to determine what happens when you die, including who will take care of your minor children and/or pets. Wills determine who will receive any assets you own, which reduces the potential for family disputes after you are gone. Without a will, the state will determine how your property is divided. Different types of wills range from a simple will to a testamentary will, or joint wills and living wills.

Creating Powers of Attorney (POA): Whether it’s to manage specific assets, like your investments, bank accounts or real estate holdings after you’re gone; or whether it’s meant to help others make health-care decisions in your best interest in case you are ill or incapacitated, you should have a POA in place.

Choosing Executors: The Executors of your estate wield strong powers that determine how your estate is finally dealt with upon your passing. Advisors can help you understand the importance of choosing an executor(s) for your estate, and what criteria you should consider when appointing someone to discharge this all-important role – especially if minor children/guardians are involved.

Designating beneficiaries: If you don’t choose beneficiaries for your assets carefully (or not at all), your estate assets could end up in the hands of individuals who you never intended.

Considerations for dependent's needs: A well-designed estate plan will ensure that all of the needs of your dependents (be they minors, adult children, siblings, persons with special needs or aging parents) are taken care of in accordance with your desires.

Minimizing estate taxes and reducing probate fees: The lack of a well-designed estate plan could significantly reduce the amount of assets passed on to your heirs.

Protecting your estate: When you pass, many of your assets – like long-term investments, property and other tangible assets – will likely need care, protection and management until they are finally disposed of. In the absence of an estate plan, your assets may not receive the level of protection they require.

Health and welfare considerations: A comprehensive estate plan includes directives to your executors and POA-holders about what to do in case your health (mental or physical) deteriorates. Without those instructions, decisions could be left up to medical professionals or state-appointed representatives.

Coordination: It is important to make sure all components of the estate plan are in sync with the will to ensure proper distribution of your estate.