When it comes to estate planning and retirement, the best building blocks make all the difference.
Estate planning actually begins far before the end of your life.
If you have assets or even a family, you have an estate plan.
While your estate plan may be the default one provided by the state, nonetheless one exists.
How should you plan effectively?
According to a recent Marco Eagle article titled “Money Talks: Estate planning tools,” planning for retirement is a key step in successful estate planning.
You have accumulated assets through savings, IRAs and possibly a 401k.
These assets should be set to grow and provide a consistent income during retirement.
What is next?
Preserving your assets.
How?
Proper estate planning.
Not every person will need the same tools, but there are a few to consider.
Trusts
A trust can help you manage assets during your lifetime.
After you have passed away, the trust can help you distribute these assets to your heirs without going through probate proceedings.
Annuities
Annuities are another means of passing assets outside of probate.
Why would avoiding probate be an ideal option for some?
With probate, the heirs must wait for the court proceedings to end before receiving their inheritance.
If you want assets available immediately to heirs, probate is not the way to go.
Life Insurance
If you are the primary provider for your family, life insurance is important.
The beneficiaries will receive the payout immediately and income tax-free.
Are you not sure what tools would best accomplish your goals?
You are in good company.
Estate planning should not be undertaken alone.
Work with an experienced estate planning attorney to create a plan specific to your situation.
So, how do you find an "experienced" estate planning attorney?
First, ask around. Friends, family and other professional advisors are trustworthy sources.
Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").
Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.
How?
Two helpful online resources are just a mouse click away to assist with your due diligence: Avvo.com and Lawyers.com.
Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.
In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: Marco Eagle (June 11, 2017) “Money Talks: Estate planning tools”
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