Retirement vs Estate Planning

Retirement vs Estate Planning

Estate planning for secure retirement is essentially, particularly for business owners. We can help you navigate the tax accounting challenges, in order to protect your family and employees from excessive government regulation.

Here’s a few important areas to focus on when planning your retirement transition :

1. Write A Will – Clearly define which family members get specific assets. If your circumstances are at all complex, you’ll need a lawyer, who will charge about $300 to draw up a simple will and $1,000 to $3,000 for an estate plan that involves a will and a trust.

2. Consider getting Life Insurance – For relatively little money you can help provide for your family when you pass. Checkout your AAA membership for great deals. Contact us for help planning your retirement benefits.

3. Create Three Critical Life Documents – This process is done before you become incapacitated. Its important that you plan now for unforeseen life events.

  • A durable power of attorney lets your agent manage your finances and legal affairs.
  • A release-of-information form gives doctors permission to share your medical records with designated representatives.
  • Advance directives. A durable power of attorney for health care names a representative to make medical decisions on your behalf. A living will specifies medical treatment you do or do not want at the end of your life.

4. Avoid Probate – Did you know that life insurance death benefits and the money in retirement accounts pass directly to your named beneficiaries, and property owned jointly with the right of survivorship — say, a house or a car — transfers automatically to the co-owner. You can also arrange for bank and other accounts to be transferable or payable on death, giving the recipient immediate access to the money. Take enough off the plate and your estate could qualify for small-estate treatment, which is much simpler than regular probate.

5. Setup Trusts – Possessions owned solely in your own name go through probate. But if you transfer title of those possessions to a revocable living trust, naming yourself as trustee, you retain control over the assets during your lifetime and the property inside the trust goes directly to your heirs upon your death. Result: no probate, no fees, no public airing of your business.

6. Talk with your People – Spend time with your family members write down who gets what like jewelry, furniture, antiques and such. A will typically leaves such “tangible personal property” (that you own without a title) to a spouse or children, leaving them to sort out who gets what. Clarify, the tangibles prior to passing to avoid family conflict.

7. Plan your Memorial – Its recommended that you prepay your funeral. This removes undue stress and financial burdens for your family. Choose your funeral home and resting place ahead of time. Or perhaps, we desire to be cremated, laid to rest in your favorite quite spots … lake front, ocean side cottage, or exotic travel vacation place.

Whatever, you choose be sure to create a documented plan before your time comes. 

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