Estate Planning
Effective Estate Planning is critical to ensuring that your property and assets are transferred to the next generation quickly and tax effectively, while limiting loss and delays due to probate administration.
You don't need to be a millionaire to benefit from a well thought out estate plan. Whatever your wealth, it is part of your legacy to future generations. Because estate planning can be complex, having an experienced financial advisor on your team can provide perspective that attorneys or accountants do not have, and will increase the likelihood your wishes are followed and there is a smooth transition.
The Importance of Effective Estate Planning
If you've conscientiously managed your investments to build wealth and create retirement income, chances are you will have assets that you will want to hand down to your children or other heirs after you die. The cost of not having an effective estate plan include long delays in distribution of assets and significantly higher estate and gift taxes.
Estate planning with the assistance of a financial advisor can organize your assets for an efficient transfer while keeping estate taxes to a minimum. To do any less is a disservice to those you leave behind.
Basic Aspects of Estate Planning
Estate planning can go from the simple to the complex, but all estate plans should include the following:
- Will: his legal declaration specifies who will manage an estate and provides for transferring money and assets upon the death of an individual.
- Power of Attorney: This is an authorization to act on another person's behalf in a business or a legal affair. It may be oral or written.
- Living Will: Also known as a health care power of attorney, this document provides specific instructions on the health care treatment of an individual who is unable to make such decisions due to illness or incapacity. The actions outlines may be general, or very specific, and a person is appointed to make decisions on the individual's behalf. In recent years, living wills have grown in popularity.
- Trust: Often seen as an instrument of the wealthy, trusts are legal mechanisms that let you put conditions on how and when your assets will be distributed upon your death. They also allow you to reduce gift and estate taxes and to distribute assets to your heirs without the cost, delay and publicity of probate court, which administers wills.
Of course, lawyers and tax experts all have their functions in estate planning. Federal and state laws governing estates must be kept in mind. But financial planners play a critical role in estate planning because of their overall knowledge of your investments.
A financial planner can also help clearly communicate your intentions. Discussing plans with your heirs may avoid conflicts or eliminate confusion that could arise after you're gone. Because inheritances can be emotional issues in some families, this is an important aspect of estate planning.
Does Your Estate Plan Need Revising?
An estate plan should be updated frequently, since your income, expenses, debts and assets can change over time. While periodically reviewing your finances help your current situation, reviewing your estate planning will help your family in the future.
As a CERTIFIED FINANCIAL PLANNERTM with over 25 years experience and an MBA, Shawn has overseen many successful estate plans and continues to work with clients at all levels of wealth and at all stages in their lives. Call us today at 916-355-8860 to discuss how we can help you with your estate planning needs.
Claycomb Wealth Management is based on Folsom, CA and serves clients throughout northern California, including the communities of Auburn, Cameron Park, Carmichael, Citrus Heights, El Dorado Hills, Fair Oaks, Folsom, Gold River, Granite Bay, Lincoln, Loomis, Orangevale, Placerville, Rancho Murrieta, Rocklin, Roseville, Sacramento, Shingle Springs, and Sloughhouse.