While it is not something that you want to think about very often, you will not be around forever to take care of your loved ones. Death or disability can strike when you’re least expecting it. Without a plan in place, your loved ones might find themselves left with a complicated situation that could be expensive and time consuming and they may be forced to pay unnecessary taxes. It is a mistake to think that you can put off planning until later on in life. The time to develop an estate and trust plan is now.
Request Your Complimentary Consultation from a CFP® Professional
An estate and trust plan is not just a will
If you have never learned the difference, you might be wondering what makes an estate and trust plan different from a simple will and why you would want to choose one or the other.
A will is a legal document that includes instruction on who receives your property when you die. A will names a legal representative who will oversee that your instructions are carried out.
A complete estate and trust plan, however, contains much more. You will want to consider having a living trust, power of attorney for both finances and healthcare decisions, and a living will which directs how you want care provided, or not, if death is imminent.
When you develop a trust, your trustee holds the legal possession of your property for your beneficiaries. When a living trust is established, you are usually the trustee and beneficiary. Therefore, you are in control, just as you are now. Should you become unable to make decisions for yourself due to disability, incapacity or death you name a successor trustee to handle your affairs.
Living trusts have an advantage over wills in that they do not pass through probate. A will passes through a probate, which is a court process that ensures the will is legally-binding and that your wishes are enforced. The probate period can be time consuming and expensive. Probate is also a public process, which means once your will is filed with the court anyone can access a copy. Since a living trust does not pass through a probate, it can save your loved ones time and money and it keeps your estate out of the public eye.
Your state has a plan for you if you don’t make your own
In the event that one has not prepared for disability or death, each state has regulations in place for what happens with a person’s assets. Unfortunately, these regulations are generally not as beneficial to your loved ones as you would probably like.
In many states, if you cannot make business decisions due to mental or physical disability, then a court appointee will be assigned to make decisions in your place. This may or may not be a family member or trusted friend. The appointee will make decisions about your care if disabled. . This is an expensive and laborious process.
If you die without an estate and trust plan, your state has written a last will and testament for you, which distributes your assets according to state law and regulation. It is unlikely that this distribution will be completely according to your wishes.
In general, state plans are much more stressful and less beneficial for your loved ones. It’s in their best interest and for your peace of mind to formulate a plan now that you know will take care of them.
Develop your estate and trust plan with a CFP® professional at ProVise
Without an estate and trust plan, navigating life after your disability or passing can be a mess. Our CFP® professionals work with you to develop a plan now so you and your loved ones are prepared for an unexpected tragedy like disability or death.
Are you ready to talk to a CFP® professional at ProVise and develop your estate and trust plan to keep your loved ones secure when you cannot? Contact ProVise today for a complimentary consultation.
Schedule a Complimentary Consultation
Financial planning is not one big thing…it is hundreds of little things™. We will walk with you every step of the way through investments, debt payoffs and everything in between to help you reach the financial goals that matter most to you.
STRAIGHT FROM THE SOURCE
Read our market analysis reports to stay up to date on the raw numbers that impact your financial landscape.
Only 18 months ago, managing cash was not something that anyone was really thinking about. However, the Federal Reserve’s Federal Open Market Committee (FOMC) has raised interest rates 11 times since March 2022 to combat the worst inflation the U.S. has seen in 40 years, taking short term rates from 0% to over 5%.
Are you tired of feeling overwhelmed by your expenses, unsure where your money is going, and struggling to grow your savings? In an article earlier this month on avoiding lifestyle inflation, I briefly described one strategy called “reverse budgeting” and how we’ve found it to be a helpful way for families to gain control over their finances.
When you need to get an X-ray for a broken bone or you need to fix damage from a car accident, you should be able to count on your insurance to...
- About Us
- Asset Protection
- Banking and New Proposed Taxes Webinar – March 20, 2023
- Blueprint sections 2
- Bullet Disclaimer
- Business Owners
- Client Center
- Complimentary Consultation
- Confidential Income Expense Worksheet
- Contact Us
- Debbi Darchi
- Designation Disclosure
- Environmental, Social and Governance
- Eric R. Ebbert
- Estate and Trust Planning
- Evelyn Sheridan
- Financial Planning
- Financial Planning 2
- Financial planning for professionals
- Form ADV
- Form Test page
- Four Ways Doctors Can Save on Taxes
- Four Ways Doctors Can Save on Taxes – Download
- Helpful Resources
- Holly Harman
- Hurricane Info
- IMPORTANT DISCLOSURE INFORMATION
- In the Community
- Income Expense Worksheet Form
- Independent Women
- Jon Brethauer
- Kimberly Adams-DiPiero
- Managed Client Form
- Nancy Croy
- New Client Forms
- News & Insights
- Our Team
- Paul H. Auslander
- Personal Financial Officer
- Peter Seriano CFP
- Philanthropy & Charitable Giving
- Planning Disclosure
- ProVise Planning Experience
- Provise Planning Graphic
- Ready To Retire
- Recognition Disclosure
- Retirement Plan Consulting
- Retirement Planning
- Retirement Readiness Survey
- Review of 2022 and Secure 2.0 Act Webinar
- Russell Campbell
- Sandy Risgaard
- Savvy Events
- Shane O’Hara
- Social Security Webinar – February 22, 2023
- Steve Athanassie
- Steve Csenge
- Subscribe to ProVise Perspective$
- Susan Washburn
- Thank You – Consultation
- Thank You For Contacting Us
- Thank You Planning Packet
- Thanks for Subscribing
- V Raymond Ferrara, CFP®
- Wealth Management
- Who We Serve
- Tampa #2