October is the month for estate planning in Financial Planning Fort Collins. If you’ve been putting “Complete necessary estate planning documents” on your list of things to do – as well as your RightCapital task list for a while, think about making this your signal to plan your estate planning consult!
If you’ve completed your plan in the past few years, this could be the ideal opportunity to examine your beneficiaries. Actually, it could be the perfect opportunity to look at the transfer of your money after the change into Charles Schwab is over. If it’s been at least five years since you most recently completed an in-depth examination of these documents, now is your opportunity to dig involved.
Perhaps you’re at the top of your game. (Pat you on your back!) You are aware of the amount of money you have and where you would like your wealth to be distributed upon your death. The primary beneficiaries as well as contingent beneficiaries will be named in accordance with your preferences. Also, you can ensure that your estate plan documents specify the beneficiaries or organizations precisely to reflect any instructions that don’t already override your will. You’ll earn bonus points also, since you know the location of your physical assets going. Intestate won’t work for you!
You’ve even spoken to your beneficiaries to inform them what they can anticipate when you die. Your children are aware of the things they’ll inherit, as do your family members and friends. family members. Additionally, you have planned the best way to distribute your wealth to your favourite charities and non-profits to ensure tax effectiveness. You have a plan for your estate that is well-organized.
WHAT ABOUT YOUR PARENTS?
Do your parents have any information to share with them what you need to be aware of regarding their wills and estate planning? In the absence of that, then this post is for you.
This is because If you have children and you’ve completed yourself estate planning and made it public and they’re aware about the ways they’ll inherit your wealth — or notand are capable of planning their own financial futures accordingly. If your parents are still living and haven’t shared their plans to you, you could be exaggerating or missing the most important aspect of your financial plan.
Imagine you’re hoping to — or perhaps expecting to receive some sort of inheritance … But it is discovered that your parents had plans to give their assets to charities. Maybe they’ve not made contingency plans to pass on their wealth to others: If they’d like to ensure their wealth is passed on into the future generation their family (i.e. you) It’s likely that they’ll need to self-insure for a long-term health need. Maybe they’re healthy and likely to live longer — and also spend more time in those longer years than they anticipated.
Your inheritance could be smaller than you thought … and it may may end with no inheritance in the first place. If you’re an beneficiary in your financial plan, but it doesn’t work out what happens to you?
On the other hand maybe you’re not expecting to get anything since you’re not sure your parents have anything worth giving … however, they actually have. They’ve also told you they’ll donate everything to charity, as stated in their wills, however their accounts list their children as beneficiaries.
If you’re not ready to be a recipient of an inheritance, or don’t know the amount, how will it affect you when you go through having to lose one of or both parents?
We’ve all heard about an aunt or uncle who is a distant relative leaving assets to a nephew or niece who didn’t realize they had assets after their death. Not everyone is Mr. Deeds!
In any event the best way to manage the transfer of wealth between generations is to establish a plan and then communicate it. However, if you don’t have your strategy, how can you plan? The best way to prepare is to begin with the people with whom you’re most close to: Your family. If your parents reside and you haven’t yet discussed the estate plan with them, here’s how you can start.
5 STEPS TO NAVIGATING INTERGENERATIONAL WEALTH TRANSFER
1. The first step to help your parents in planning their estate is having an open and honest discussion about your parents’ wishes. It could involve discussions about wills, trusts and the power of attorney as well as healthcare directives. Be sensitive to the subject by stating that your aim is to ensure their safety and safety.
2. Together, you can create an exhaustive list of the assets your parents have including savings accounts, bank accounts and investments as well as real estate and personal properties, as well as any outstanding debts or obligations. Knowing their financial situation is essential for a proper plan.
3. Ask them whether they’d be interested in making any gifts in the near in the near future. In contrast to a bequest at death, they will be sure that their recipients will appreciate the gifts they receive during the course of their lives.
4. Re-examine the beneficiary designations on their accounts and on insurance policies together. Make sure that they reflect their current preferences and are in line with their plans for estate planning.
5. Your parents should be encouraged to collaborate with an estate planning lawyer to create or revise important documents such as trusts and wills. While you could help them with the creation and notarizing various other documents for estate planning but these are most likely to call for the assistance from an attorney. Be sure that the documents you draft are valid, legal and easily accessible when required.
From the financial assets to real estate and family businesses to sentimental objects and heirlooms, having an plan of who will benefit from what is essential. Knowing what’s in the house and where it is and the location it’s headed to can give you and your family peace of peace of.
However, managing an intergenerational wealth transfer is an arduous process. When you begin your own or help your parents in theirs, be aware that each family’s circumstances are unique. It is essential to collaborate with skilled experts, like your financial planner or an estate planning attorney to create a strategy that is in line with your objectives and beliefs. If you take proactive steps now you can clear the way to a more prosperous and more assured financial future for your parents and the next generation.
