3 Important Steps When Estate Planning For The Future


It's not something you often want to think about, but putting together an estate plan is paramount for ensuring the right parties get your assets should you pass on. To make this process a little less complicated, you can plan in the following ways:

Create a Will

It sounds fairly commonplace, but it's a good idea to create a will as soon as you can. Failing to do so could cause all sorts of headaches for your family, such as dealing with expensive court fees and heated arguments between family members. 

Start with selecting your beneficiaries. Some of the most common include spouse, children, grandchildren, and other relatives. You can also designate charities and even friends to be beneficiaries if you don't have living relatives that would need your assets. You'll also want to select an executor, the party responsible for making sure your will is carried out correctly. 

Minimize Estate Taxes

The last thing your family should have to worry about after you pass on is paying back taxes you might still owe. Save them this financial burden by taking the right financial steps. You could, for example, give tax-free gifts to certain members of your family. There is a limit to how much you can give in a certain year, which varies from state to state. 

You can also invest in a charitable remainder trust (CRT). It lets you convert stocks and bonds into lifetime income, free of the capital gains tax once assets are sold.

If you can't minimize these taxes, give your family a way to pay them back by investing in some type of life insurance policy. Money from these policies are completely tax-free, and you can designate who gets the money once you sign up for a policy. 

Work with an Estate Planning Team

For many, estate planning is a long and complex process. Instead of doing it on your own and possibly making a mistake, get help from an estate planning team. They offer many helpful services that you'll need during this time, including will creation, financial planning, and legal counsel. 

You can consult with this team anytime you want, and they'll offer insightful advice to make this process go as smoothly as possible. 

No one is going to live forever, but at least with estate planning, you can help your family get through life after you pass on. Start estate planning as soon as you can and hire professionals to ensure your family has a stable financial future. 

Contact a company like Delphi Wealth Management Group for more information and assistance. 


28 November 2017

Learning More About Finances

After we bought a house, I started realizing that we were going to need to learn to save a little money. We had become pretty laid back about spending because we were so accustomed to making so much extra each month, but with a mortgage, we found ourselves running out of money on a regular basis. I decided to get real about our finances, which is why I set up a financial plan to stick with year round. You wouldn't believe how much of a difference that simple plan made. We went from scraping together money to head to the grocery store to sticking with a rock solid budget.