Safeguarding Your Legacy: Essential Estate Planning Tips

Many people put off estate planning matters because they believe they have plenty of time to address them in the future. Others find the process complex and intimidating.

Unfortunately, neglecting this crucial task can have costly consequences and create unnecessary stress for loved ones already experiencing emotional turmoil. To avoid these common pitfalls, consider adopting these essential estate planning tips.

Prepare Essential Documents

The first step is to prepare critical legal documents, including:

A Will

This is a non-negotiable. You must have a last will and a testament that:

• Outlines exactly how you want your assets to be distributed after your death
• Names a personal representative (or executor) to manage your estate
• Appoints guardians for children, if applicable

We also recommend that you explore the following options with your estate planning attorney :

Trusts

A trust allows you to transfer ownership of your assets to another party (a trustee) who manages those assets on behalf of your beneficiaries. Trust planning may help you :

• Bypass probate, which can be lengthy, costly, and erode privacy (probate is a public process)
• Maintain control by specifying how, when, and to whom your assets are distributed
• Protect assets from creditors and lawsuits
• Minimize tax liability and leave more to your heirs

It’s worth mentioning that there are several kinds of trusts. Please contact your estate planning attorney to determine which is right for you.

Power of Attorney

Like a trust, a power of attorney is a legal document allowing you to name another party to act on your behalf. The difference is that a power of attorney allows an agent to make decisions on your behalf while you are still alive—but are ill or incapacitated. This is critical not only to ensure your healthcare wishes are carried out but also to ensure that your business affairs, debts, and other financial obligations are taken care of if you cannot manage them yourself.

Ensure Assets are Appropriately Titled

How your assets are titled can significantly impact how they are transferred upon a death. Here are a few common ways to title assets:

• Joint tenancy with right of survivorship – when assets are owned equally by two or more people. This ensures assets automatically pass to the surviving owner without probate
• Beneficiary designations – some assets (life insurance policies and retirement accounts) allow you to name beneficiaries who will inherit the assets upon your death
• Revocable living trust – any assets titled in your revocable living trust are not subject to probate and will pass to the heir according to the terms of the trust

Review Beneficiaries

Assets like life insurance policies, retirement accounts, pension plans, and even some bank accounts allow you to specify who will inherit them following your death. And when you designate beneficiaries for these assets, they will be distributed to those named individuals upon your death—regardless of your will or trust!

This is why reviewing and updating your beneficiary designations is so important. By reviewing your beneficiary designations now, you:

• Ensure assets are distributed according to your wishes
• Minimize potential conflict between beneficiaries or family members
• Avoid probate

Plan for Your Legacy Now!

Whatever you're planning for retirement or other stages of life, the experienced advisors at Shared Vision can help. Contact us today, and let's begin building your financial future together!

This material is for informational purposes only and is not a recommendation or advice for your individual portfolio. All investing involves risk, including the possible loss of principal. Diversification does not guarantee a profit or protect against a loss. International markets are subject to additional currency risk and geopolitical risks including political, financial, or natural disasters that may adversely affect the value of securities in those markets. These risks are especially high in emerging markets.