Valentine’s Day is upon us. How about a gift for our loved ones that will really help them? Completing your estate and legacy plans is an action that can be immeasurably beneficial to your family. When you complete your estate and legacy plans and documents, you are saying to your loved ones that you care about them and want the business and financial aspects of your death to be as smooth as possible for them. The process isn’t as complicated as most people think. There are really three main questions that get us started on the path for estate and legacy planning:
1.What “stuff” do you have? (A written listing of all our items & property of value, title, deed, or registration including our personal property). “Stuff” is a technical term I like to use to describe our earthly property.
2. Who do you want to get your “stuff” when you die? (Spouses, children, other loved ones & friends? For many, this will also include charitable entities as well.)
3. When do you want them (your heirs/beneficiaries) to get your “stuff”? (You can have some control from the grave if needed or wanted).
I believe we should all be responsible for our own “stuff.” Estate and legacy planning, and the documents produced through this process, provides for an orderly transfer of your “stuff” at your death. It helps eliminate uncertainty by your heirs as to what you want to happen when you’re no longer living. Most of the time during this process, additional documents are produced to: 1) Provide guidance for your loved ones in the event you are living but no longer able to make decisions for yourself – like incapacity or inability – for business and financial matters; 2) Guidance pertaining to healthcare decisions if you are unable to do so; and 3) Guidance and instructions on your end-of-life wishes and desires.
If you die without proper documents (dying intestate), the statutes for the state where you reside may well dictate who gets your “stuff.” Unfortunately, I have witnessed this happen to folks. This can be undesirable. It can also mean what you intended isn’t what happens. Many times, it is a mess! Actions have consequences. Inaction also produces consequences. I recommend you decide. In so deciding, you will need to memorialize your decisions through a document or documents. This can mean wills or trusts or both. Everyone’s situation is unique and needs to be handled as such. Some folks have more “stuff” or more complicated wishes, and may require more detail, and potentially more intricate documents. Some folks have less complicated affairs and can require less complicated documents to accomplish their goals.
This process is also the perfect time to revisit the beneficiaries named for all your financial accounts. IRA, 401(k), pension, profit sharing accounts, life insurance, annuities, transfer on death designations, are examples of items that need to be checked for their beneficiary designations. Have you had a new marriage, divorce, partnership, births, deaths, change of health? These examples produce thoughts of potential changes in beneficiaries for financial accounts. These events, and others, may also present the need for changes in wills and trusts.
Yes, there are other items and issues that must be addressed in the estate and legacy planning process. The process will also require some of your time and effort to complete. Some of the decisions needed are potentially difficult ones. If you are hesitant, envision your loved ones having to “guess” at what you wanted done, or a judge having to dispose of your assets at your death according to the statutes – which may not be how you want it done – and in a public court proceeding. Perhaps that will help motivate you to move ahead.
Completing your estate and legacy documents can greatly benefit your loved ones. Perhaps as importantly, it can benefit you: You get to check one more thing off your list of things you know you need to do. Clearing our to-do list is a liberating feeling. Try it. You’ll like it. Please don’t leave a mess for your heirs. It’s not nearly as complicated as it might appear. The most important step you can take is the first one. A body in motion tends to stay in motion. So, get in motion. Get started on your estate and legacy plan. It’s a great way to show your loved ones you love them and care about them. Isn’t that what a Valentine’s Day gift is supposed to do? If my office can help you or your loved ones in getting your estate and legacy plans completed (or started!), please give us a ring. We are happy to help.
A disclaimer: I am not an attorney, nor am I attempting to act as an attorney or give legal advice. All our clients use an attorney to counsel, advise and assist in the estate and legacy planning process, as well as prepare the appropriate documents for each individual’s specific needs. We are fortunate in our region to have some excellent attorneys that practice in the area of estate and legacy planning. My clients and I have worked closely with these attorneys over the years. I am happy to refer folks to attorneys that will be the right fit for the client’s particular situation. As a holistic financial advisory practice, we want our clients to hedge all their risks and fill in all gaps of their financial lives, including the area of estate and legacy planning. In my 30+ years of practice, very rarely is this topic brought up by others with my clients. We see this as a serious need and issue for our folks and want to help them get this resolved.
-by Ben Smith
Registered Principal, RJFS
313 East 10th Ave. Bowling Green, KY 42101 Phone: 270-846-2656
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