Since estate planning involves thinking about death, many people put it off until their senior years or simply ignore it all together. I get it though. Procrastinating with planning is common; no one wants to think of death, so why would you spend time planning for it? But the hard to face truth is that we will all die at some point, and no one has the crystal ball to know when. How would you feel knowing that your failure to plan created major hardship, expense, and mess for the loved ones and assets you left behind? I guess that’s a rhetorical question since you won’t be around to know how you feel, so let’s turn the question around. How would you feel if you created a solid estate plan and knew your loved ones were always protected? Peace of mind, right?
When discussing estate planning, a Will is what most people think of first. Indeed, Wills have been the most popular method for passing on assets to heirs for hundreds of years. But Wills are not your only option, and in most cases, your worst option. That’s because if you rely on a will alone to pass on what matters, you’re guaranteeing your family must go to court when you die. And that is time consuming and expensive.
In contrast, other estate planning vehicles, such as Trusts, which used to be available only to the uber wealthy, are now being used by those of all income levels and asset values to keep their loved ones out of the court process.
Once you have chosen the people you want to receive any of your assets — either from a Will, a Trust, a Life Insurance Policy, or a Retirement or Bank Account — the way you designate how they will inherit should be a key consideration.
If you’re like most people,you probably own numerous digital assets, some of which likely have significant monetary and/or sentimental value. Other types of online property may have no value for anyone other than yourself or be something you’d prefer your family and friends not access or inherit.
To ensure all of your digital assets are accounted for, managed, and passed on in exactly the way you want, you should take the following steps…
We live in a digital age. Everyone and everything are online. We shop, pay bills, play games, listen to music, order groceries, and so on, all from our online accounts. It’s a valuable sphere and, consequentially, people are resistant to store passwords for fear that their password storage app will get hacked. But think for a minute of the opposite scenario. What if someone needed to access your account but couldn’t? What if you needed to, but couldn’t, turn off that bill pay or shut down your Facebook account?
April 12th is Teach our Kids to Save Day. I love this idea. We should be introducing our kids to the lessons of saving money, incurring debt and frivolous spending as early as possible so they can begin to develop strong financial habits. Ironically, one study showed that by the time a child is 7 years old, he or she has formed beliefs about money. Seven. Years. Old . Here are 5 tips to introduce money to your kids to enable them to build healthy habits and beliefs around money.
Naming permanent guardians in your Will is just one step in protecting your kids. It’s equally important to have someone (plus backups) with documented authority, who can stay with your children until the long-term guardians can be located and formally named by the court, which can take months. Also, a Will does not take effect until you pass, so your appointed guardians will not have legal authority over your kids if you are in tan accident or incapacitated. The last thing you want is for police to show up at your home and find your children with a caregiver, who doesn’t have documented or legal authority to stay with them and doesn’t have any idea how to contact someone with such authority. In such a case, police would have no choice but to call Child Protective Services.
Death does not have to be a dreary topic. Actually thinking about death can help you focus on life - on living a better life and passing it down for generations. A Trust is the ultimate tool to accomplish the transfer of your legacy.
A follow up to my earlier blog, which you can read here, this video explains - with a human connection - why buying legal documents from an online platform is never a safe bet. 20West Legal offers free consultations. Give us a try first before you click that “buy now” button to purchase boiler plate documents. First consultation is free!
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