Joseph A Leonard - Wealth Management & Consulting

You have lived your life without a play, but one of the worst financial management decisions you can make is not having an estate plan in place. In many ways, this plan not only cares for you right now but it also gives you the power to make decisions after you are gone. For many, it is a critical step to take long before you are elderly but even if you are older, now is a great time to make some key decisions.

Decisions to Make Now

The following are some of the most important decisions you can make for yourself:

• Who is your durable power of attorney? This person ensures your wishes occur. They hold on to your will. They provide guidance for medical decisions if you cannot make them yourself. They also provide you with someone to rely on after you die to carry out your last wishes.
• Do you have a trust set up? Trusts can help your family to avoid at least some of the estate taxes they are likely to pay. Trusts also allow you to move property from yourself to others without having to worry about the legalities of doing so. Further, trusts can be in use to care for specific goals you have such as taking care of children, leaving money behind for young adults or even caring for your pet or favorite charity.
• Talk to your estate planning attorney, tax accountant or another professional to find out how you can minimize your taxes. Many times, there are instances when you can reduce the amount of tax paid to the government on your estate. It takes only a few minutes to make these decisions but it can make a big difference later.
• Do you have a formal will in place? Is that will updated to include any of the major life changes in your life? You will want to update your will often and you want to have several copies including one with an attorney, your durable power of attorney and another with your family.
• Do you have life insurance in place? While your estate may be tied up in probate for up to a year, your family may need money to pay for their needs throughout that time. A life insurance policy can provide this to your loved ones.
• Have you updated and assigned beneficiaries? This includes providing this information on your pension, your retirement accounts, your investments and your life insurance policies. Verify that those beneficiaries are accurate.
• Do you need to appoint guardianship for anyone? If you have a disabled or minor child, this should be listed in your documents.

When you take the time to make these formal decisions now, you ensure that your estate planning goals are in line. Take some time to consider all of your options before making these decisions. To ensure that your wishes are legally provide, simply work with an experienced estate planning attorney to handle them.

Ask Joseph Leonard and Coastal Investment Advisors for additional personal finance advice or learn money management tips on financial management by downloading this free financial management guide.

Don't forget to see Joseph Leonard in person during an upcoming financial management seminar!