Estate Planning: Before you Begin

A person’s legacy cannot be measured by one solitary event in his or her life. Rather, legacies, like lives themselves, must be measured as a whole. If you’ve ever taken a step back and examined your own life and legacy, what have you found?

Do you feel comfortable with what you’ll leave behind?  How do you want people to remember you when you’re gone? More importantly, how can you make sure people remember you in death, as you were in life? Estate planning has become an important tool in deciding how your life’s work will be viewed. Without it, the courts may decide who gets what. With the proper planning, you decide which individuals or charities receive your assets.

Think Ahead: Before preparing the most crucial documents needed for estate planning, sit down and decide who you’ll put in charge to make medical and financial decisions for you. You’ll also want to decide who gets what. Picking out beneficiaries and an executor of your estate are two of the most critical decisions you can make. If you have younger children, decide what would happen to them in case of an emergency.

Know which documents you’ll need: In general, you should have a financial power of attorney, a medical power of attorney and a living will. These documents designate who will make decisions when you’re gone, or if you’re alive but unable to make important choices regarding medical care or finances.

Survey your finances: Know what you’ll owe when you die, including the costs of probate. Subtract that from your assets and have a general idea of how much money you’ll have left over. By keeping tabs on your remaining assets, you’ll be more prepared to know what you’ll pay in taxes.

When planning your estate, you want to be prepared in all areas of your life. From medical to financial decisions and everything in between, it can be an uncomfortable subject, especially when you involve your family in the planning. In the end, you want your legacy to be protected. By working with a Certified Financial Planner to carefully plan your estate, you can take the proper steps to protect your family’s future.

FINANCIAL FACTS

Many Less – As of March 31, 2013, there were 1.93 million existing homes for sale in the U.S. Just four years earlier (March 31, 2009), the number of homes on the market was 3.65 million (source: National Association of Realtors, BTN Research). 

Nice Jump – Private sector jobs increased by 4.65 million in the past two years (through April 30, 2013) while public sector jobs (government) declined by 348,000 over the same period (source: Department of Labor, BTN Research). 

Much Worse There – The unemployment rate in the United States is 7.5 percent today. The unemployment rate in the eurozone is 12.1 percent (source: Department of Labor, BTN Research).