Goals

Planning Your Estate

Estate Planning—Not Just for the Wealthy
No matter what stage of life you're in, it's never too early to learn about—and consider the benefits of—estate planning.

Estate planning can help preserve and transfer your assets in a tax-efficient manner while potentially enhancing the amount of wealth transferred to your beneficiaries.

Often people say, "I'm not rich. I don't have to worry about estate planning because I don't have an estate." The truth is, almost everyone has an estate. An estate is essentially anything you own at the time of death, including:

  • Life insurance and annuities
  • Investment accounts, such as stocks, bonds and mutual funds
  • Retirement accounts, such as pensions, IRAs and 401(k)s
  • Checking and savings accounts
  • Personal property, such as homes, automobiles, furniture or livestock
  • Collectibles, such as paintings, antiques or coin collections
  • Business interests

Getting Started On Estate Planning

Don't know where to start? Here are some basic things to consider:

  • A will. While laws vary from state to state, if you die without a will, or intestate, the state decides what happens to your assets, regardless of what's best for your family or caretakers.
  • Life insurance. Life insurance can effectively help meet many estate planning objectives. You use a small percentage of your assets to pay your life insurance premiums and when you die, beneficiaries typically receive the death benefit proceeds free of federal income tax. The death benefit can help:
    • Provide liquidity to pay estate taxes, preventing them from eroding your estate—and legacy
    • Pay funeral expenses
    • Alleviate debt
    • Settle any lingering healthcare costs 
    • Create a legacy for your loved ones
    • Benefit a favorite charitable organization
  • Beneficiary designations on retirement accounts, annuities and life insurance
  • A durable power of attorney. This is a legal directive that allows someone you designate to make decisions on your behalf should you become physically or mentally incapable of doing so
  • Medical directives, also called "living wills." These directives help ensure your medical care is in line with your values, even when you're unable to communicate them
  • Guardianship designations for minor children
  • A succession plan for any small-business ownership stake

Your attorney, accountant and financial advisor can help determine which of these tools you may need, depending on your individual circumstances. Once you have them in place, meet with your financial advisor regularly to review the components of your estate plan and ensure that your objectives are still being met.
 

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material.   The information cannot be used or relied upon for the purpose of avoiding IRS penalties.  These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.