![]() By following an estate planning checklist and working with an experienced attorney, getting a plan in place for your future is a lot simpler than you might expect. As the year is winding to a close, schedule an appointment to review all the numbers, beneficiaries, potential tax consequences, and any needed updates.Creating an estate plan doesn’t have to be overwhelming. The details of your estate plan and any modifications can fundamentally impact your financial strategy and end-of-life goals. Have you reviewed your estate plan with your financial professional? These are overwhelming statistics driven in part by a lack of communication. ![]() According to NASDAQ, 70% of families lose their wealth by the 2nd generation and 90% by the third. Have you talked with your family about changes to your estate plan?Įstablishing lines of communication regarding your estate plan and financial goals is an often-overlooked strategy that can help preserve your wealth. The creation of trusts helps to preserve wealth, alleviate some of the tax burden, avoid probate, and provide your family and beneficiaries a less stressful way to access your estate after you are gone. ![]() If you own any trusts, are they accurate and up-to-date? You should also consider reviewing your recent financial statements, including your bank, retirement, and brokerage accounts, and any safety deposit boxes. It’s essential to keep an up-to-date inventory list, for example, the value of your home, other real estate interests, cars, jewelry, and other physical assets. Have you reviewed and revised (if necessary) an inventory of your assets? Only about one-third of adults 55 and older have a power of attorney. If you don’t have one it may be necessary for the court to appoint one. A durable power of attorney (POA) for your finances names an individual who can make financial decisions should you become incapacitated. Some states provide a statutory or standardized form, while others allow you to draft your own. Examples include medical directives, living wills, or advanced health care directives. Are your HCP and POA documents up-to-date and in a safe place?Ī health care proxy (HCP) is a document that names someone to express your desires and make health care decisions should you become incapacitated. If the beneficiary chooses to receive their payout as an annuity instead, any interest accrued may be subject to taxes. Beneficiaries typically don’t need to pay taxes on the life insurance death benefit they receive, especially if they receive it as a lump sum. In these or other relevant circumstances, you may want to modify the beneficiaries in your accounts. Reviewing your retirement and life insurance beneficiaries is important as people may get married or divorced, they may die, or a child or sibling may suddenly become a risk through addiction or an inability to manage money properly. Have you reviewed your retirement and life insurance beneficiaries? ![]() There are exceptions to this rule, and a financial professional can help you learn how it could impact your financial strategy. Any gifts above that amount must be reported to the IRS on your 2024 tax return (form 709). In 2023, the annual gift tax exclusion (or gift tax limit) is $17,000 per recipient without having to pay taxes on those gifts. Upon the death of the second spouse, the children inherit everything.Ģ. Joint Will – A type of last will and testament where two (or more) people, generally a married couple, transfer the entire estate to a surviving spouse when the first spouse dies.However, in those in which they are legal, a set number of witnesses must write down the wishes of the incapacitated individual as soon as possible. Nuncupative wills are not legal in most jurisdictions. Nuncupative (Oral) Will – Typically, these are instructions by someone too sick to create a written will on how they want their personal property distributed.Holographic (Handwritten) Will – This will is handwritten and signed by the testator, and witnesses are recommended.It is typed, printed, and signed by the testator and two witnesses. Attested Written Will – This is the most common type of will.There are generally four types of wills that people choose from: These changes may impact your future financial plans and goals regarding your estate management should you die or become incapacitated. As each year comes to a close, our life changes. Reviewing your will as part of your year-end estate planning checkup is essential. Here is an eight-step year-end estate planning checklist to help you organize and prioritize your estate planning strategy. As your world changes year by year, it is critical that you review your estate plan and update it to stay aligned with your long-term financial goals. When it comes to your estate plan, you don’t just have it drafted and put away until it is time for your loved ones to manage your lifetime of affairs.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |