Important Note

You are now leaving the Strong Valley Wealth & Pension, LLC ("Strong Valley") website. By clicking on the "Schwab Alliance Access" link below you will be entering the Charles Schwab & Co., Inc. (“Schwab”) Website. Schwab is a registered broker-dealer, and is not affiliated with Strong Valley or any advisor(s) whose name(s) appears on this Website. Strong Valley is/are independently owned and operated. Schwab neither endorses nor recommends Strong Valley. Regardless of any referral or recommendation, Schwab does not endorse or recommend the investment strategy of any advisor. Schwab has agreements with Strong Valley under which Schwab provides Strong Valley with services related to your account. Schwab does not review the Strong Valley website(s), and makes no representation regarding the content of the Website(s). The information contained in the Strong Valley website should not be considered to be either a recommendation by Schwab or a solicitation of any offer to purchase or sell any securities.

Article

No Matter Who Becomes President

Estate planning isn’t just for the affluent or depend on who is President. A properly structured estate plan is necessary if you wish to direct the distribution of your assets during your lifetime and after your death, as well as choose guardianship for your dependents.

October 3, 2024
Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

Many people postpone the planning of their estates because they assume that estate planning is only for the affluent. Others may think that estate planning is similar to tax planning, which can always be done “later.” In some cases, estate planning may be put on the back burner because it is a reminder of one’s own mortality.

But, a properly structured estate plan is necessary if you wish to direct the distribution of your assets during your lifetime and after your death, as well as choose guardians for your minor children or plan future care for other dependents.

Getting Started

First, start thinking about assembling your professional estate planning team. This initial step may be difficult due to having to share your personal thoughts, fears, wishes, and financial information with others. Therefore, it can be helpful to start with your trusted financial advisor. Certainly, your attorney will play an instrumental role in preparing any necessary legal documents. Generally, the size and complexity of your estate will dictate the complexity of the estate planning team and process.

Initially, your estate planning team will focus on your current financial status to better assess where you stand today in order to optimally plan for the future. Consequently, you will need to gather all the necessary documents detailing current and future income, property ownership, insurance, and established legal arrangements.

Gathering Documents

The following list contains some of the information you will be asked to provide:

  • Current income from employment and all investments.
  • Investment documents, certificates, statements, passbooks, etc.
  • All retirement benefits: Social Security (including survivors’ benefits), Individual Retirement Accounts (IRAs), defined benefit (pension) and defined contribution (401(k) or other workplace retirement) plans.
  • Any expected deferred compensation.
  • Deeds to primary and secondary residences.
  • Life insurance policies in which you are the owner, the insured, or the beneficiary.
  • A list of all personal property.
  • Current and anticipated debts and obligations, including mortgage and loan balances, real estate liens, tax liability, consumer debts, and estimates of funeral costs and estate settlement expenses.
  • Your will, if you have one.
  • Trust agreements, if any.

A complete analysis can begin once you have gathered this information, which will allow you to take a closer look at your family’s needs. You may want to consider the following questions:

  • How will your family’s overall cost-of-living change in the years ahead?
  • Who will take care of your minor children if something happens to you?
  • Who will make medical and financial decisions on your behalf if you become incapacitated due to illness or injury?
  • What are the projected educational expenses for your children?
  • Is there a family member who needs special care or medical attention?
  • How will estate taxes affect your assets?

Keep an Open Mind

The careful planning of an estate requires you to share personal and financial information with one or more professional advisors. This information provides your estate planning team with the necessary tools to design an estate plan that will help to fulfill your specific goals and wishes for asset control and distribution.

Once you have created your estate plan, remember, as your circumstances change over time, your estate plan may need to change, as well.

Regular reviews can help ensure that your estate plan is on track to meet your current and future objectives.

Other content you may like

  • A Roth: Potential for Tax-Free Income

    Reasons You Should Plan to Live Until You're 95

    October 17, 2022
    Anchor your financial planning on how long your money needs to last. This article takes a look at two well-known tables for life expectancy managed by the Social Security Administration which gives you a point of reference when thinking about how much longer your money needs to last. Instead of fear of outliving your money, there is a way to incorporate that uncertainty into your financial plan.
    Read this Article
  • Mitigating Risks of Over-Concentration

    Mitigating Risks of Over-Concentration

    August 17, 2024
    For seasoned business executives, the allure of company stock can be undeniable. After years of dedication and hard work, owning a significant portion of one's company can seem like a well-deserved reward. However, over-concentration in company stock poses risks that can jeopardize an executive's financial security and long-term prosperity. Understanding Over-Concentration Over-concentration occurs when a […]
    Read this Article
  • Lessons from Johnny Depp’s Other Lawsuits

    Lessons from Johnny Depp's Other Lawsuits

    May 3, 2022
    Protecting your assets is a very important part of any estate planning. With about 40 million lawsuits filed in the U.S. each year, protecting your family’s legacy and assets is getting harder and harder. There are a lot of lessons to be learned from Depp’s experiences.
    Read this Article
  • What does it mean to be rich?

    What Does it Mean to Be Rich?

    November 2, 2023
    If we set unrealistic expectations for ourselves, we never reach the satisfaction of true wealth. Many of our expectations can be generated unconsciously by the people we are surrounded by, combined with that age old stumbling block of comparison. Often our feelings of poverty or wealth have nothing to do with a balance sheet. How do you define wealth? This article offers some interesting perspectives to consider.
    Read this Article
    • The link you have selected is located on another server. The linked site contains information that has been created, published, maintained, or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products, or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein. Visitors to any linked websites should not use or rely on the information contained therein until they have consulted with an independent financial professional. Please click “Continue to Link” to leave this website and proceed to the selected site.
    No, stay on StrongValley.comContinue to link
    phone-handset