National Estate Planning Awareness Month
October is National Estate Planning Awareness Month. Have you created or updated your estate plan?
Plan for tomorrow (today).
That seems like sensible advice, doesn’t it? Yet a surprising number of people leave no estate plan in place for their survivors. It makes a certain amount of sense. Nobody likes talking about death. But this is exactly why you should make an effort to create and maintain an estate plan: you simply won’t be there to settle matters when the time comes.
Everyone has an estate.
Someday, it will be someone’s job to account for the things you leave behind when you die. This goes for homeowners and renters, those who are retired, those who are working full-time, and everyone from every walk of life.
Everyone needs an estate plan.
Without your instructions, it could be decided in court. If you don’t leave behind an estate plan, your family could face major legal issues and, potentially, bitter disputes. Your estate plan may include wills and trusts, life insurance, disability insurance, guidance on the care for children and other dependents, powers of attorney, a living will, medical directives, anatomical donation directives, a pre-or post-nuptial agreement, extended care insurance, charitable gifts, debts, passwords, digital assets, and more.
Why not just a will?
While your will may state who your beneficiaries are, they may still have to seek a court order to have assets transferred from your name to theirs. Estate planning can include items like properly prepared and funded trusts, which could help your heirs to avoid probate. Probate can be an expensive process and lock up assets during the time they’re needed most.
Beneficiary designations on qualified retirement plans and life insurance policies usually override bequests made in wills or trusts. Many people never review the beneficiary designations on their retirement plan accounts and insurance policies, and the estate planning consequences of this inattention can be serious. Having an estate plan means keeping the estate plan updated, as time passes or changes happen in your family.
Where do you begin?
We recommend that you speak with a qualified financial professional – one with experience in estate planning. Please contact us so that we can refer you to a good estate planning attorney and a qualified tax professional, and from there assist you in drafting your legal documents.
Time For Your Financial Health Check
A financial health check? Uh oh. Even the words can evoke feelings of dread. But here we are, midway through 2017. So…how are you doing?
I can practically see the wheels turning in your head:
That’s right. I was going to make changes. Make a budget, pay off debt, save more, dance my way into financial freedom…So what happened?!
I know how you feel. It’s very easy to get sidetracked from our well-intentioned goals. Life just seems to get in the way at times, doesn’t it? If you’ve fallen off the financial wellness wagon – or are barely hanging on by a thread – here are a few ideas to help you get back on board.
1. Take a deep breath (seriously – it’ll reduce your anxiety) and work your way through the list, one step at a time.
2. Think about the past six months. Have you experienced any important life changes? These may impact the goals you originally set. Be willing to reframe your goals based on your current circumstances or set entirely new ones, if necessary. Some examples:
· You made a job transition and need to determine what to do with your current retirement plan account balance
· You had a child and need to update your will
· Your spouse wants to be a stay-at-home parent, so your income stream is going to be lower
3. Pull out that budget sheet you crafted so carefully in January. Open up your checkbook or bank statements and start doing the math. Do you see any problem areas? Are you spending more than you earn? The second you start attuning to the issues, the more likely you are to actually deal with them.
4. Start looking at the other goals you set. How’s the debt repayment plan coming? Has it been derailed by a bad spending habit that’s popped up? Brainstorm ways you might be able to curb it.
5. Ask for help. Find a friend to be your financial accountability partner or make an appointment with a financial planner. There is power in a community of people encouraging you to take positive steps forward.