3 Things to Keep in Mind When Estate Planning

Estate planning is an important part of retirement planning for many reasons: You’ve worked hard for your money and want to see your children and grandchildren benefit. And, you want to see it passed down in the most efficient way possible. Unfortunately, costly mistakes are all too easy to make, from forgetting to name a beneficiary to not updating your estate plan over time. Since your estate and legacy plan is a part of your overall retirement strategy, it is important to discuss how you plan to transfer your wealth before you pass with your trusted financial professional. So, try and keep these three helpful things in mind when estate planning.

Many people may not know that their will does not control who inherits all of their assets, such as retirement accounts, life insurance, and annuities. In order to pass these on, you must name a beneficiary for each retirement account, insurance policy, and annuity. If you don’t, these assets will likely be paid to your probate estate, possibly triggering income tax. Believe it or not, some people incorrectly name beneficiaries; don’t forget to distinguish family members of the same name with signifiers like Sr. and Jr., and update last names in the cases of marriage and divorce.

Estate planning becomes more complicated when it comes to how to pass on a retirement account to minors or individuals with special needs. Children cannot claim assets without a court-appointed conservator to manage the asset until they turn 18. Individuals with special needs could benefit more from a trust rather than directly inheriting assets because if they receive too many assets they could no longer qualify for government benefits. You should also consider how inheritance could affect your beneficiary’s tax burden, and consult a professional for a tax efficient strategy.

It’s important to review your estate plan regularly, and update it when there are major life changes like the birth of a new beneficiary, marriage, divorce, or when beneficiaries become eligible to receive money. How you distribute assets may change over time, as could your own financial situation. All of this is part of your financial and overall retirement plan, thus making it crucial for you, your family, and your trusted financial professional to discuss.

Here at SHP Financial, we understand the importance of properly passing on your hard-earned money to your loved ones the way you want when you pass. We want to help you create a comprehensive retirement plan that takes this into account by making sure your assets are passed on in the most efficient way possible. Don’t wait to start planning for the inevitable. You may need to create an estate and legacy plan from scratch or simply update your existing one, so click HERE to schedule your complimentary financial review today.

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.
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