Estate Planning

Which Plan is Best for My Plans?

When if comes to estate planning there is much confusion and uncertainty. This is mostly due to people not wanting to face their own mortality. You've worked hard for what yo have so make sure that when you pass, it goes to those whom you desire. Using the proper planning tools that match your particular circumstances and situations is of utmost importance. Let's get together soon. I'm looking forward to having you establish a well balanced plan.

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Where There is a Will ...
There are a Thousand Relatives

Most people spend a lifetime working hard accumulating assets and possessions. These same people spend very little time devoted to making sure that what they’ve work for goes to whom they want at the time of their demise. This is mostly due to the fact that we don’t like spending much time contemplating our death. We all have to face that we are not invincible and that there will be a time when we are no longer here to rule and reign in our kingdom.

For years there has been an ongoing debate of whether or not individuals need to use living trusts. Arguments ranging from added complexities to daily life by the usage of a trust to the will being able to have provisions for a trust within it have kept many people from making any decisions.

Things to remember while in the decision process: 1) A will is the primary cause of probate. Your family will have to go through the court system to carry out the wishes that you have spelled out in your will. This can be a very expensive proposition. Not to mention that your will can be successfully challenged in the same court that they are trying to settle in and everything you have done becomes a matter of public record. 2) A living trust, if deemed suitable, ends all of these variables. Your information stays private and there is no costly court proceedings both at your passing and if you should be incapacitated while living. Also, the mystery that has surrounded living trusts is mostly due to ignorance regarding the matter. They are not as complicated to use as some have portrayed.

It is important that an evaluation be done to assess whether or not you should be using a living trust or if a will alone will suffice your need. Your FinBal® Qualified FSP can help you review your entire financial arena and assess which option and course of action is best suited for you to achieve your goals. Call and take advantage of the one hour, no-cost, consultation.

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Laying the Foundation That will Change Lives Forever

One day someone asked me this thought provoking question: “Can you tell me your grandfather’s first name? How about your great-grandfather or your great-great-grandfather?” When my answer was no, he told me this was due to the fact that many times we are so focused on making “ends meet” or maintaining what we have that we never do the things that are necessary to break the mold that is cast for us and our loved ones who follow. Because of this, we eventually become just another person on that family tree that is tucked away in some book.

Why is it that almost everyone can remember names like Joe Kennedy, JD Rockefeller and JP Morgan? It is, by in large, due to the permanent legacy that they established which has lived long beyond their temporary existence in this world.

We look at the accomplishments of the “really wealthy” and say… “Only if there were a way that I could do that, I would…” or, “I don’t have the wealth it takes to make plans like they do”. This mindset is what robs us of ever experiencing the joy in knowing what a true difference we can make. Through proper planning, we can take a little and turn it into a lot. You can use tools like Living Trusts, Charitable Remainder Trusts, Family Foundations, Irrevocable Life Insurance Trusts, etc. to change your family for generations to come. These tools are not beyond your means and abilities. When used properly, they can permanently change the outcome of your family forever and when your great-great-great grandchildren are asked your first name they will blurt it out without a second thought.

Get together with your FinBal® Qualified FSP to learn how you can lay the foundation that will stand the test of time for you and your loved ones.

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Planning for the Zero Tax Estate

Without ever realizing it, upon their demise, most individuals’ estates will distribute their assets to their perceived heirs, plus one… the US Government. This is mostly due to a lack of awareness of the tools that are available or the misconception that those tools are only for the “really” wealthy.

For example, if a couple had an estate that exceeded the current limits, it would invoke a tax called the “estate tax”. Currently, this tax could be as much as 55%!

You earned throughout your lifetime, all the while, paying taxes on those earnings and now your estate has to pay taxes again because you were smart enough to save. Even though this may not seem fair, it is the way that it is.

Like most tax, this tax is a voluntary tax. You may be asking… “What do you mean voluntary? It’s a tax so we must pay it!” There are provisions within the tax code that will allow you to avoid this tax. Therefore, if there is a means by which your action will remove the tax or your lack of action will result in taxation; the tax is voluntary. It is just that most people don’t know how to avoid this problem.

One way to avoid this problem would be the usage of the combination of an Irrevocable Life Insurance Trust and a Charitable Remainder Trust. An individual could make provisions within their will or living trust that whatever portion of their estate exceeded the, then current, estate tax free amount would go to a Charitable Remainder Trust that would carry out their charitable intents. In addition, they would establish an Irrevocable Life Insurance Trust that would own a life insurance policy on their life, equal to the amount that would go to the CRT that would pay the money to their heirs without estate taxation. This could represent a tax savings exceeding $60,000 on an estate that exceeds the limit by just $300,000! These tools can be used even if your estate doesn’t exceed the current limits. Your FinBal® Qualified FSP can help you access which approach will work best for you, your circumstances and your goals. Stay informed, stay involved and keep learning!

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Building a Living Legacy

It is of utmost importance that we change the way we think when it comes to estate planning. Most think of it as “death planning” and therefore spend very little if any time devoted to it. In reality we should think of it just as the title implies; the establishment and preservation of an “Estate” that will go on forever. We have the most wonderful opportunity afforded us if we will but take the time to utilize it. We can completely change the outcome for us, our children, our children’s children and so on, with a small amount of planning. For example, you can change the educational path of generations to come within your family by establishing an irrevocable life insurance trust that has provisions specifically for college funding for your heirs. You enhance your heirs’ future earnings potential by increasing their educational levels. This is but one small example of one of the many ways that you can make a lasting change for generations to come with a small amount of specialized planning. You should talk with your FinBal® Qualified FSP about using the strategies that will best meet your goals and objectives while adapting to your particular situations and circumstances. They can help you to establish, build and maintain a legacy plan that will change lives within your family for generations to come

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