The invaluable value of estate planning
In my 24 years of working closely with people’s personal finances, time and time again I hear families’ stories and observe the benefits of planning ahead for the ease of your survivors after you die.
That is called estate planning. Although it is not pleasant to contemplate our demise, setting some intentions in writing and investing in some pre-planning really helps those who survive you during a time when they are most vulnerable, when even the most business-minded person can find themselves experiencing shock, stress and a temporary diminished capacity for clarity and decision making.
Education about estate planning is often directed toward the estate tax impact as well as instructions for the distribution of your assets. It is usually contemplated by married couples who have children. And it is most often engaged in by people who have recently experienced a death in the family and have firsthand experience of either how difficult it can be without preplanning or what a gift it is by the decedent to have thought ahead and taken the necessary actions to make it easier after their death.
Estate planning is multifaceted — you may want to speak with specialists about burial arrangements, insurance, tax impact, legal distribution of assets, protection of heirs, sustenance of your spouse, recognition of your life achievements, making lasting legacies that can make the world a better place. If you want a financial coach, seek out a financial planner who is trained in in viewing your life and death from these multiple perspectives and works with you and with your team of specialists to plan ahead, to educate you, and ultimately to serve your family and your interests through times of transition.
While facilitating survivors through the processing of what needs to be done after a family member dies — I hear tales and have observed firsthand the confusion of how the instructions of the attorney may not match the instructions of the bank or the investment companies and the instructions of the insurance company didn’t match what broker or the accountant said, etc.
Yes, we all get through it eventually, but often with surprises of expenses and time, and looking back may wish there were an easier way. Well, there is an easier way, called planning, comprehensive planning with an experienced guide, and probably with several specialists. What are these people selling? What are their background, education and experience? There is more to it than just an insurance policy, more than just a will, taxes are one aspect, care for minors, titling of assets, what does your spouse need to know ahead of time. These are things you’d do well to learn about now.
Do you have a special collection?
Is your child’s spouse a member of the family that you want to see cared for as much as you want to see your child cared for after you die?
Are you aware that your living trust likely disinherits your son or daughter in-law if your child predeceases you and is that the way you want it?
Do you know what happens to your children if they are under the age of 18 when you die?
If you have no children do you want to donate all of your assets to the state or would you prefer to designate certain good causes, scholarships or charities?
We assume we will die when we are old but that is not always the case. Whether you have more assets or more debts, take action; learn about your choices and how it works. What does it cost for burial or cremation and who do you expect pays for it?
If you have made an estate plan, congratulations! And take a second look at it now — have people or circumstances changed? Was it written before the estate tax law changes of 2010?
Are you missing something? A professional planner can efficiently educate and help you through
the checklist to achieve the satisfaction of knowing the good you’ve done.
Cheryl Seifert is a certified financial planner at Capital Financial Consultants Group. She can be reached at 123 S. Third Ave., Suite 7, Sandpoint; phone, 208-255-2766; or online, www.capitalfin.com.