Estate Planning
October 20, 2022
As we continue our series on retirement concerns that you don’t have to be afraid of, it’s time to discuss a topic many people avoid: estate planning.
Many people feel overwhelmed or don’t know where to start when it comes to planning for a time when you’re no longer here. As difficult as it can be, it’s important to plan ahead so you can help protect your loved ones and ensure your assets are distributed according to your wishes.
To help get started with the estate planning process, here are some essential aspects you should consider:
Create a Will
“When you create a will, you designate what will happen to your property (including your digital assets). You will also name an executor who is responsible for executing your wishes.”1
Create a Health Care Directive
“A health care directive (aka, living will) tells your family and friends what lifesaving medical treatments you want and, more importantly, don’t want.”1
Consider a Trust for Your Estate
“A trust denotes how your assets will be disseminated after your death, and it allows for specificity. It also ensures that items within it avoid probate court, which can be costly for the estate.”2
Designate Beneficiaries to Your Retirement Account(s)
“These beneficiary pronouncements override the will, so whoever is the estate executor will not have to figure out to whom these accounts go, nor will the accounts need to go through the costly probate process.”2
Understand Estate Tax Laws
“For 2022, the federal estate tax exemption is over $12.06 million for individuals and $24.12 million for married couples. Some states, however, impose their own estate taxes, and their exemptions aren’t as generous.”2
No one knows what the future will hold, but when you have an estate plan in place, you can feel more confident that your family will be taken care of. If you have questions or would like to get started with an estate plan, please contact us. We look forward to helping you!