Talk to Your Family over the Holidays about Your Estate Plan
Many of us labor a lifetime to build up our assets and fight for causes that matter to us. Few things are more fulfilling than the thought of sharing wealth and legacy with our family.
Of course, it’s impossible to plan for every eventuality, but careful planning can mitigate against the two primary risks.
Why you need an estate plan. Now.
Amazingly, 6 in 10 U.S. adults don’t have a will or living trust, and almost half of boomers (age 53-71) haven’t put their estate planning documents in place yet. In my experience, I have seen that most people fail to set up an estate plan because they simply don’t know they need one. Estate planning isn’t just for the wealthy, every adult needs some level of estate planning regardless of their age or how many assets they have. In fact, if you don’t create your own estate plan, then you are on the default plan that the State of California has in place for you (and you probably won’t like it).
The 5 Golden Rules of Lending Money to Children
When you think about the price of having kids, the costs that come to mind may include things like child care, camp, braces and college tuition.What probably doesn’t spring to mind are mortgages, car payments or personal loans.
Who Will Inherit Your Financial Wisdom?
Many people who inherit wealth or small businesses are at significant risk for essentially squandering the wealth. An Ohio University study shows that an astonishing 33 percent1 of all beneficiaries lose their entire inheritance within two years of receiving it. The ways they manage to do so are as varied as the imagination, but in our experience we have seen a common thread: mismanagement.
Don’t Let Your Living Trust Go Stale
If you have already set up your living trust – congratulations! Having a living trust can save your loved ones from having to go through a long, costly and public probate and/or conservatorship court proceeding. A living trust and other essential estate planning documents also make your wishes clear, minimizing the potential for hard feelings between family members. These reasons along with others clearly outline the benefit of having a living trust, but don’t let your living trust go stale!
Is your trust funded?
A trust avoids probate, but an empty trust does not. What do I mean by that? You have probably heard me say that a trust is like a bucket and you need to fill it with your assets for it to avoid probate. Retitling your assets to your trust is referred to as “funding” your trust. In this newsletter, I’ll explain more about the funding process as well as which assets to retitle into the trust.
Is your child turning 18 this year?
Here’s an issue many families overlook when children leave for college: That child, in the eyes of the law, is now an adult—and needs some all-important documents.
Very important information for small business owners
Congress passed a paycheck protection program for small businesses. The Paycheck Protection Program sets aside $350 billion in 100% federally-backed loans for small businesses that may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
We’re here for you during this difficult time
Due to the Governor’s order, I am now only meeting with clients via video or phone conference. As some of you may know, I have met with clients virtually before, so systems are already in place for that.
Don’t forget to check your beneficiary designations every year
Do you remember filling out the beneficiary designation form for your retirement account or life insurance?
If you are like most people, you probably don’t remember filling out this important form. You may already know that life insurance and retirement accounts are not controlled by your will or living trust, but by the beneficiary designation form that the life insurance company or retirement account custodian have on file. Common mistakes that I see with these assets are that people have no beneficiaries listed or out of date beneficiary designations. For example, if you recently married, you may still have your parents, siblings or other family members listed as the beneficiary. On the flip side, if you recently divorced, you may still have your ex-spouse listed as the beneficiary. Don’t let this happen to you! Make sure to verify your beneficiary designations at least every year. Most of the time, they can be checked online with the life insurance company or retirement account custodian.