Despite its importance in financial planning, estate planning is generally underestimated and misunderstood. The articles below will help you develop a solid understanding of the purpose and objectives of estate planning.
Have an Estate Plan Yet? Do it in Six Simple Steps
Estate planning is arguably the most underestimated area of financial planning despite its importance. It can also seem overwhelming, but it doesn’t have to be. Start an estate plan for yourself or a family member in six steps.
The objective of this web course from Purdue University is to help organize your information and ideas before meeting with an advisor about estate planning in six simple steps. Accompanying each step below are links to additional resources to help in the process. Access the course here or via the links below.
- Introduction
- Step 1: Initiate the discussion
- Who Gets Grandma’s Yellow Pie Plate
- Talking with Aging Parents About Finances
- Who Will Get Grandpa’s Farm? Communicating about Farm Transfer
- American Bar Association
- American College of Trust and Estate Counsel
- Certified Financial Planner: Board of Standards
- The Financial Planning Association
- Ric Edelman, Your Financial Planner
- Metropolitan Life Publication
- Estate Planning for Families with Minor Children
- Step 5: Consider alternatives
- Who Gets Grandma’s Yellow Pie Plate
- Estate Planning: Property Ownership
- Who Will Get Grandpaโs Farm? Communicating about Farm Transfer
- Estate Planning: Wills
- Smart Money
- National Financial Planning Support Center
- Life Insurance: An Estate Planning Tool
- Financial Planning Toolkit
- Power of Attorney
What are the Objectives of Estate Planning
We’ve discussed the importance of a solid estate plan and how estate planning can help you in other articles, but there is more to it. A comprehensive estate plan will do more than just make things easier for the family when an individual passes and maximize the assets that are passed on. A comprehensive estate plan will provide:
Asset Protection
Provide protection to the individual and family. This protection extends to business interests, real assets and joint ownerships. Additionally, provisions such as a durable power of attorney or a durable power of attorney for health care will ensure that the individual’s needs and desires are still met in case of incapacitation.
Balance
Help plan for a balance between use of assets during lifetime and ensuring enough is left to take care of the family when the individual passes.
Asset Distribution
Establish guidance for efficient and structured distribution of assets while both minimizing taxes and ensuring specific assets reach the desired individuals and entities.
Secure the Family’s Future
Secure the future of the family by arranging for the assistance of trusted professionals to help in the wise and effective management of financial assets if necessary. This will ensure the future financial security of the family. This is especially important in relationships when the surviving spouse may not be knowledgeable in the management of finances or experiences excessive anxiety with the newly acquired responsibility.
How Important is Estate Planning? More Than You Know
Estate planning is the single most overlooked part of a financial plan. Many assume that they are not wealthy enough for a financial plan or too young to worry about it.ย An estate plan isn’t for you, it’s for your survivors. Anyone can pass away at any age, accidents happen.ย It requires minimal effort to prepare and update an estate plan, especially in the early years. [Read more…] about How Important is Estate Planning? More Than You Know
What is Estate Planning and How Can it Help Me?
An estate is composed of everything the individual has rights to. This can include property, business interests, investments, joint ownership, life insurance owned by the individual (and those gifted within three years of death), retirement benefits, possessions, and any other personal assets.
An estate plan can be thought of as a portal. When an individual passes away, all of their assets must pass through this portal. First they will pass through the probate or non-probate filter. They will then pass through multiple other filters (the non-probate journey being much shorter) before the remainder finally reaches the desired individual or entity. [Read more…] about What is Estate Planning and How Can it Help Me?
