|
You
work hard to provide a comfortable
living for your family. But you also
need to think about what might happen to
them after you are gone or if you become
incapacitated. That means you need to
start planning and planning now because
the future is not ours to see.
Here are some of the most
important steps you need to take:
-
Purchase adequate life insurance.
You may already have life insurance
– about three-fourths of Americans
do – but do you have enough to pay
off your mortgage, send your
children to college and meet other
key needs? A financial professional
can help you determine if your
coverage is adequate.
-
Lower taxes. Some of the individual
assets you leave behind may generate
income taxes, which can be
considerable. A tax advisor may be
able to help you reduce this
potential burden.
-
Designate beneficiaries. You should
periodically review the beneficiary
designations on your life insurance
contracts and qualified plans, such
as 401(k)s and IRAs. It is essential
to update these designations if
remarriages and stepchildren are
part of your family picture. Keep in
mind that beneficiary designations
will even supersede the instructions
in your will, so, if these
designations are out of date, your
true wishes may not be carried out.
-
Write a will. If you were to die
intestate – without a will – your
assets might be distributed by a
court. This could lead to a great
deal of problems within your family.
-
Create a living trust. Even if you
have a will, your assets will have
to pass through probate, which can
be time-consuming and expensive. But
with a properly established living
trust, your assets can pass directly
to your beneficiaries without court
interference, legal fees, lengthy
delays and public disclosure.
-
Draft a general power of attorney.
This document allows you to appoint
another person to conduct your
business affairs if you become
physically or mentally
incapacitated.
Clearly, trying to
accomplish all these steps can be
somewhat daunting. But you do not have
to do it alone. By assembling a
qualified estate-planning team,
consisting of a financial professional,
a tax advisor and an attorney, you can
get the help you need to achieve your
goals.
Of course, you are never
really finished with your estate
planning. Your life can change in many
ways over time. Your family or job
situation may change, or you may become
involved in charities that you wish to
support. Consequently, you will want to
revisit almost every aspect of your
estate plan every few years.
But do not wait to start
planning. When you look at your family,
you will know the effort was worth it. |
