Planning for the Future

Estate Planning is simply the specific steps to manage your wealth and assets while you are alive and the distribution of those assets after you pass away. How you manage your retirement now can greatly affect your estate plan. Your plan should take into consideration the special needs of those who survive you while planning for scenarios that may not yet exist. Without a properly crafted estate plan, your final wishes may not be executed, and your beneficiaries could become needlessly burdened—both financially and emotionally.

In some instances, designating beneficiaries on insurance policies, retirement accounts, and wills may suffice; however, most people with retirement and estate planning concerns will benefit from a consultation with a professional. Planning can become complicated and you may not be aware of all of the details and solutions that could benefit you while you are alive, as well as your beneficiaries.

Retirement Planning 

An Overview

Retirement planning should be an ongoing, multi-stage process. It should include determining time horizons, calculating required distributions and after-tax returns, assessing risk tolerance and estimating expenses.  It is very important to have realistic expectations of your post retirement spending habits. For instance, many people believe that after retirement, their annual spending will amount to only 70 – 80% of what they spent previously. Such an assumption is often proved to be unrealistic, especially if there is still a mortgage or if unforeseen medical expenses arise.

An honest conversation with a retirement specialist at Legacy Estate Planning Coordinators can greatly improve your understanding of pitfalls that await many retirees. ING, one of the largest insurance carriers, underwrote a study that shows that the more time a client spends with an advisor, the higher the savings and the more life insurance protection they obtain. Even those who report only a little time with an advisor – one or two consultations – reported proportionately higher levels of savings rates and insurance protection. It stands to reason that a person who develops a retirement plan with clearly defined goals and the support of a financial professional is bound to achieve a better outcome. It really pays to have someone ask questions that you didn’t even know to ask.

Some Safe Advice

The older you are, the more your portfolio should be focused on income and the preservation of capital. When you are younger you can afford to take more risks.  While many people start out thinking this way, over time they tend to continue investing the way they did when they were younger. A periodic review can help you determine what stage you are in. Once you know where you are, and where you want to go, you can decide what actions you need to take to learn how to provide for your retirement and preserve and protect your estate for your family.

Why Estate Planning Matters

Estate Planning | An Overview

Many individuals have the misconception that estate planning is only for the very wealthy. In reality, all individuals should consider the impact that passing on their estate will have to their beneficiaries.

Every financial institution has its own policies and procedures with respect to handling claims. Every state has its own laws that typically will require the passing of one’s estate through the court system.

In addition, there can be other taxes at the state and local level can have on the final amount transferred to beneficiaries.

Assets received by beneficiaries may be subject to ordinary income tax as well. While different types of assets will receive different tax treatment, transferred wealth can be reduced—in some instances by nearly half—through ordinary taxes.

Wealth transfers can become more complicated when the asset is a physical property, such as real estate, art, jewelry and more. And remember that outstanding debts and claims will generally need to be settled before your beneficiaries receive their inheritance.

As important as these issues are, many estates have unintended beneficiaries as a result of untimely death or divorce. Others will need changes to accomplish the proper distribution but can’t because individuals lose their ability to make changes as a result of diseases such as Alzheimer’s or Dementia.

There are numerous strategies that work to minimize the management and distribution of your estate as well as any tax burdens your beneficiaries may encounter. Common solutions include detailed contingency planning along with powers of attorney, trusts, wills, life insurance, and annuities all coordinated to make sure your heirs receive the maximum possible. To craft an estate plan that maintains your control and your retirement objectives, asset types, legacy goals, you should involve a qualified financial and estate planning professional.

Legacy Estate Planning Coordinators believes your estate plan should reflect your needs and priorities. We assist you in every step of the estate planning process.

Contact us now to explore your options.

1-800-887-0424

What does Estate Planning Involve?

A Professional’s Guidance

As you can imagine, estate planning can involve many different things, with solutions and strategies that are complex, documents and paperwork that must be filed in a specific way, and hard decisions about who gets what when you are gone.

But good estate planning starts broad, with an honest and thorough discussion of your legacy concerns. This is where having a financial or legal professional in your corner can be advantageous; even necessary. What assets do you have or hope to accumulate for transfer purposes? Are there specific wishes for the assets? Are you transferring a business or a stake in a business? Do you wish to control how much beneficiaries receive at set intervals? Do you have a special needs beneficiary?

These are all questions you should consider and discuss with a financial professional.

After evaluating your goals and assets, the next step is to explore potential solutions that may be appropriate for your specific situation.

Common Strategies and Tools Can Include:

• Wills
• Powers of Attorney
• Trusts
• Long Term Care Insurance
• Annuities
• Life Insurance

Who Needs an Estate Plan?

Estate Planning For Everyone

Who needs an estate plan? The simple answer to this question is: just about everyone.

A common misconception is that estate planning is only for wealthy or affluent. The reality is that anyone with legacy goals should consider the value of establishing a plan for their final wishes and distribution of assets.

Additionally, through the estate planning process you can outline what happens should you become disabled, hospitalized, or otherwise incapacitated and unable to make legal and financial decisions (by designating a durable power of attorney).