Estate Planning 101

After you’ve spent years accumulating wealth and building yourself a solid nest egg, what are you going to leave as a legacy? After all, when it’s all said and done, what you leave behind will preserve your memory and help your loved ones be financially successful in their own lives. That’s why estate planning is so important. And since there are a lot of things that go into leaving that legacy, it’s even more important to know the basics of laying out what you’ll leave and who you’ll leave it to.

Estate Planning 101:

• Make a Will: This will explicitly state who will inherit your property and assets as well as name guardians for your younger children in the event that something should happen to you and your co-parent.

• Use a Trust: A living trust will spare your loved ones the hassle and expense of going through probate court.

• Make a Financial Power of Attorney: This person will handle your finances and properties in the event that you are not able to do so due to illness or another incapacitation.

• Protect Your Children’s Property: If you have children under the age of 18 who will inherit parts or all of your estate, name an adult who will manage the inheritance until your child is of age to do so his or herself.

• Assign a Beneficiary: This person will be in charge of your bank accounts and retirement plans so those accounts can skip probate court and be automatically “payable on death.”

• Get Life Insurance: Life insurance will cover any significant debts and estate taxes as well as provide funds to pay for your home and young children upon your death.

• Cover Funeral Expenses: Funeral prepayment plans aren’t always reliable, so try to set up a payable-on-death account that will be used to cover your funeral costs and any related expenses.

• Protect Your Business: If you are the sole owner of a business, set up a succession plan. If you have partners, set up a buyout plan.

• Make the Final Arrangements: In writing, set out how you would like your body to be handled — organ and body donations, burial, or cremation.

Leaving a good financial legacy for your loved ones is only possible through solid estate planning. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From investments to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.