It’s back-to-school time again, and when it comes to estate planning, you may have homework to do. As a parent, your most critical—and often overlooked—task is to select and legally document guardians for your minor children. If you haven’t done that yet, you should immediately do so using my easy-to-use (and absolutely free) website.
Read MoreDeath can be a logistical nightmare. If you were to suddenly die today, would your loved ones know how to quickly find your estate planning documents? What about your financial accounts? Creating a “When I Die” file communicates your plans and desires to your loved ones when they need to know.
Read MoreIndividual retirement accounts (IRAs) do not pass to your family through a will. Instead, upon your death, your IRA will pass directly to the people you named via your IRA beneficiary designation form. Unless you take extra steps, the named beneficiary can do whatever he or she wants with the account’s funds once you’re gone. The beneficiary could cash out some or all of the IRA and spend it, invest the funds in other securities, or leave the money in the IRA for as long as possible.
Read MoreWhen it comes to putting off or refusing to create an estate plan, your mind can concoct all sorts of rationalizations: “I won’t care because I’ll be dead,” “I’m too young,” “That won’t happen to me,” or “My family will know what to do.” But once you understand exactly what planning is designed to prevent and support, you’ll realize there really is no excuse for not having a plan, provided you truly care about your family’s experience after you die or if you become incapacitated.
Read MoreWhen Eric left water running unattended, the resulting flood caused over $400,000 in damage. Any inheritance he might have received before this accident could have been taken from him to pay for that damage. However, if Eric had received an inheritance in a Lifetime Asset Protection Trust, instead of an outright distribution, his inheritance would be completely protected from such a lawsuit—and just about any other threat imaginable.
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