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Recent Blog Posts
Estate Planning: Is it Different for Women?
Estate planning is important for both men and women. However, there may be different issues that women, specifically, need to address. Statistically, women have a longer life expectancy. And according to the U.S. Census Bureau, 36 percent of women 65 and older are widowed, while only 12 percent of men 65 and older have lost their spouse.
Data also shows that women are more often the custodial parent of children and are often the caretaker for elderly parents or relatives, more so than men. Due to these differences, women have a different psychological approach to estate planning. They are so busy taking care of everyone else they "forget" to take care of themselves.
Does Everyone Need Estate Planning?
Whether or not you choose to believe it, estate planning is not only for the incredibly wealthy in the world. This is a very important aspect of life for people of all income levels. And with that said, you will want to know what will happen to your money and property once you are gone. You will want to make sure that your family is taken care of and that they know exactly what to do with your estate. This is where estate planning comes into play.
Durable Power of Attorney
A durable power of attorney is something every person should have when putting together an estate plan. A durable power of attorney will protect your property and money when you are mentally or physically unable to do so on your own. This permits another person to act on your behalf when it comes to paying bills, filing taxes, and managing property.
It's Never too Early to Start Retirement Planning
Estate planning covers several other aspects besides deciding what will happen to your assets once you are gone. Planning correctly can help to build and maintain those assets for the future, such as retirement. And, it is never too early to start estate planning.
One of the aspects in which many people fail to plan for is exactly how much will they need to have saved in order to enjoy retirement. However, determining the age in which you want to retire is the first step. To begin, make an estimate calculation regarding how much you think you will need to live on and then factor in what your approximate Social Security benefit will be.
The Most Common Estate Planning Needs for Couples
The practice of estate planning is a prudent decision at any age or stage of life, but many people consider beginning that process when they start a family. There are several common goals that couples tend to have with regard to the estate planning process.
The first goal is to provide for their loved ones and family members. If both spouses pass away or become otherwise incapacitated, an estate plan can outline the plans for how loved ones are protected. Whether it is minor children, other relatives, or even pets, all of these individuals can be protected with the proper estate planning tools.
Options for Inherited IRAs
Individual Retirement Accounts (IRA) are savings accounts that allow people to save up for their retirement, either tax-free or tax-deferred. Even though funds are accessible at any time, early withdrawal results in penalties. However, there are some exceptions.
Spouses who inherit an IRA have choices to make regarding what to do with those funds. A spouse can either combine it with their own IRA or can move it into an inherited IRA. Financial planners advise the spouse to make that decision based on their age and the deceased spouse's age.
Back to Basics: Crucial Estate Plan Components
Most people recognize that a will is a cornerstone of estate planning, but they might fail to include three other important documents: a durable power of attorney for financial needs, a living will, and a durable power of attorney for healthcare.
The best way to ensure your plans for the future are aligned properly is to have all four of these documents drafted by an estate planning attorney. Individuals who attempt to cut corners by putting these documents together themselves might not realize the mistakes they are making which expose them and their heirs to risk or extended probate.
Estate Planning with Minor Children
When many people think of estate planning, they picture it as being something that senior citizens do as a way to ensure their wishes are carried out regarding how their assets should be divided among their adult children and other beneficiaries.
But it's never too early to plan. Legal experts even recommend estate planning with minor children. Sadly, tragic accidents and illnesses do occur to young adults, so it's in everyone's best interest to make sure that young children are taken care of in the event of a parent's death. There are four different accounts that financial experts say every parent should have set up for their children. Not only do these accounts provide for their future, but they also can teach children how to be financially responsible, which is a lesson that will help them as they become adults.
Living Wills become More Popular in Estate Planning Choices
Many people are under the misconception that estate planning is only for the rich and the elderly. In estate planning, an estate is not a large mansion, but it is actually everything a person owns when they die. Personal property, bank accounts, their home or other property, digital information, stocks, retirement plans, and business ownership all fall under the domain of a person's estate.
- Who are the loved ones you want to provide for?
The Role of an Executor
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Do You Have Digital Assets?
The rise of the digital age makes estate planning all the more important, because there are new concerns and safeguards you should consider. Many records, memories, and assets are stored somewhere in the cloud and protected by passwords. If you were to pass away, your family might not even be aware of these assets, much less able to access them.
A study from McAfee indicates that the average consumer has over $37,000 in digital assets across several devices. What is a digital asset? This can include personal information, entertainment files, career records, and photo libraries, more and more of which are being stored online behind a password. The study had each individual assign an estimate to their digital assets, although nearly one-third of survey respondents indicated they did not use any kind of security protection at all.
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