This page is for informational and educational purposes.  They are not meant to recommend any estate plan, investment plan, or tax plan. This information is general in nature and not specific to anyone's individual needs. Please always seek qualified attorneys, financial advisors, and accounts to determine your individual plans.
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Legacy Planning
 
Why you should plan your legacy:
  1. Death is inevitable and the timing is unknown.
  2. If you don’t the government will plan for you
  3. Planning now will lift the burden from your loved ones later and let them grieve.
  4. Let your loved ones know you were thinking of them.
  5. Protect your assets and take advantage of legal tax loopholes.
  6. Avoid probate.
  7. Make sure all your assets will be transferred to your loved ones the way you wish.
  8. Leave your family with personal memories.
  9. Support yourself in your retirement
  10. Avoid family disputes.
  11. Provide for your family if you are incapacitated.
 
What Legacy Planning should include:
  • Personal Goals
  • Legal Goals
  • Business Goals
  • Financial Goals
 

Here are some ideas for you to consider and answer in each of those areas:

-Personal Goals-
 
Funeral and Burial Plans
  • Memorial
  • How Funeral will be paid for
  • Who to Contact
Location of Documents
  • Birth Certificates
  • Credit Cards
  • Financial Documents
  • Keys or Combination to Safe
Distribution of Personal Assets
  • Pets
  • Other Assets with History or Memories
Final Messages to Survivors
  • Video Wills
  • Family Tree
  • Letter to Guardian
Gifting to show your values
  • Gift to Charities, Churches, or other Organizations
 
 
- Legal Goals –

Estate Planning

Avoid Probate
  • Trust
  • Marital Property Agreement
  • T.O.D.
  • P.O.D.

Mixed or Blended Family Concerns

Transfer Assets to who you want and when

Guardianship for minors or handicapped children
  • Picking Guardians
  • Special Needs Trust
  • UTMA – real estate, painting, royalties, patents
  • UGMA – cash and securities

Guardianship for yourself
  • Durable Power of Attorney for Finance and Property
  • Power of Attorney for Healthcare
  • Long Term Care

Find all tax saving devises

 
-Business Goals-

Succession Planning
  • Transfer of Ownership
  • Who is qualified to run business?
  • Will the business need to be sold?
  • Do you know what your Operating Agreement, Partnership Agreement, Shareholder Agreement, or Bylaws say about transferring your ownership when you pass away?
  • Do they have authority to run business until estate is settled?
  • Is there enough money to keep it going?
  • What tax liabilities will there be?
  • Buy/Sell Agreement – Life insurance policy so surviving partner may buy out deceased partner’s share
  • Key Employee Insurance – Death of key employee insurance. Will help with loss profits, continuation of business and training new employee
  • Split-Dollar Insurance – Employer and employee share premiums.  At death employer receives amount of money they paid in, the rest goes to employee’s beneficiary.
  • Workmen’s Compensation
  • Business Overhead Expense – pays for rent, mortgage salaries, payroll taxes, utilities
  • Business Disability Buyout – similar to Buy/Sell but for a disability
 
- Financial Goals –

 Accumulation of Wealth Planning
 
Life Insurance
  1. Term – Temporary Insurance
  2. Whole – Leveled guaranteed premium with cash value
            Needs for Insurance
  • Pay for Last Expenses
  • Education Fund
  • Mortgage Elimination
  • Cash reserve
  • Lost Income
  • Child Care
  • Retirement
  • Business Loan
 
Employee Benefits and Pension
  1. Simple IRA – employer matches the contribution of employee up to a certain %
  2. Keogh Plan – self-employed individuals
  3. 401 (K)  - money is contributed from pre-taxed salary
 
Annuities
  • Fixed Rate – receive a fixed rate of interest
  • Variable Rate – rate will be determined by the investment
  • Market Value Adjusted Annuity – guarantees a specified rate for a period of time until the contract matures
  • Equity Index Annuity – guaranteed rate of interest with a possible higher rate depending on what that index is tied to
  • IRA’s
  1. Traditional – investment grows tax deferred until you withdraw, 10% penalty if withdrawn before 59 ½ years of age
  2. Roth – contributions made after-tax dollars.
 
Social Security and Benefits
  1. Retirement – depends on your age
  2. Disability -
                a.  Social Security Disability – depends on prior earnings and must wait 5 months
                b.   Supplemental Security Income (SSI) - low income and few assets must not be able to do work                       Death - $$ to surviving spouse or minor children if both parents passed away

Long Term Care – you don’t have to be hospitalize first, pays benefits for persons with irreversible dementia (provides institutional “nursing home care” and community-based “home health care” benefits)