There tends to be a lot of excitement in the air as one approaches retirement. Contemplating how to spend one’s golden years represents the culmination of decades of hard work and the ability to enjoy the fruits of one’s labor. While the enthusiasm is warranted, it’s also crucial to make some important financial planning decisions before the fun begins.
The distribution of some of our assets can be governed by contracts. Examples of these contracts include life insurance, investment accounts, bank accounts and trusts.
My daughter, my only child, recently married a nice man. However, he is not responsible with his finances. I don’t want my son-in-law to have any access to her money or through a divorce via equitable distribution.
We may think of a spoiled heiress to a large fortune, whose parents were savvy enough to prevent her from having full access to her funds. On the other hand, we could imagine a loved one with special needs, whose needs will be provided for with trust-protected money.
Retirees have a choice about when to claim their Social Security retirement benefits, but for most people, 62 is the earliest age at which you can start them.
As family members age and require care, the burden of that care often falls on an adult child. For those that leave jobs to care for family members, it can become a financial hardship for the family.
Develop a successful transition plan that will provide for you, your heirs and your business.
A fiduciary is someone who manages property or money on behalf of someone else. When you become a fiduciary, the law requires you to manage the person’s assets for their benefit—and not your own.
It is also important to realize that it isn’t merely “why” you are updating your will, but “when” you are updating that can make all the difference. Acting too late (or too early) may mean your changes are no longer appropriate or even immediately invalidated.
If you have updated your estate plan during the Covid crisis and even found a way to sign your documents while maintaining social distance, do not overlook the last step of trust funding.
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