Estate and legacy planning is about much more than keeping your will up to date, but often that’s as far as people get when they think about their estate. We talk about legacy planning for end-of-life planning with our clients. In those conversations, we examine your hopes not only for yourself but for your family, your community and your concerns about what might happen in the future.
Our estate and legacy planning is tied into your comprehensive financial plan. By knowing your whole financial picture we can discuss gifting strategies during your lifetime and facilitate estate and legacy planning by regularly reviewing your existing gifting and estate plans and working collaboratively with your estate attorney to create new plans as needed.
The primary purpose of an estate plan if to help you examine your financial needs and assets in order to make sure that your heirs are provided for in a way that meets your goals for when you are gone.
Everyone has an estate plan. It’s either one that you have created or one that the state creates for you. At death, virtually all assets are distributed in the following ways:
A second marriage, a family cabin, a child with special needs, a partial interest in a piece of real estate (a family farm etc.) are examples of how the distribution of assets can become complicated.
You should also designate beneficiaries on your retirement accounts. Here's why:
Your retirement account(s) may be some of your largest assets so it is important to choose wisely. Upon death, your retirement account(s) likely pass directly to the beneficiaries you have named, which means they don’t typically flow through your will. This is important to understand especially if you have named beneficiaries that you may feel are not ready to make good money decisions yet or ever. Even if your will has made provisions for the beneficiaries in your life that are not ready to handle the inheritance, the retirement account will bypass the will and pass the assets directly to those unprepared beneficiaries you have elected.
It’s not uncommon to want to leave a gift for your children and family members at your death. We find that clients who are in a position to share their wealth with others often plan to do so through their Last Will & Testament.
However, the reality of the situation is, many of our children have financial needs now. Would it be more helpful to your children, or more enjoyable for you, if you were able to give during your lifetime? There are options to share your gift in a way that is both generous and financially wise.
