Preparing Your Legacy

If there's one issue few people wish to discuss, it is what happens to their estate upon their death. Although it is the last financial concern that will affect you, it is one that needs to be dealt with ahead of time.

What makes estate planning so important? Let's start with this fact — you never know exactly when your estate suddenly will become the most critical aspect of your financial life. Few of us can plan when we will die, but it is clear we can be prepared for when that day comes.

Key issues you need to address
Estate planning can involve many things, and the level of sophistication required will depend on the extent of your assets, family considerations and charitable intentions. Here are a few concerns that you need to act on:

Maintaining a will
By some estimates, two-thirds of adults in America have no will. That leaves not just your money, but the lives of children (if both parents unexpectedly die) to the state to decide what to do. Without a will, you lose control of much of what you treasure in life.

Minimizing estate taxes
Estate tax laws are changing, but they still exist, and it is becoming more common for people who think of themselves as "middle class" to be subject to estate tax issues. Proper planning can minimize the impact.

Creating trusts
Trusts offer a way for assets to pass directly to beneficiaries upon your death without going through a probate process.

Charitable giving
With proper estate planning, you can leave a legacy to your favorite charities as well, in a way that makes the most of the money you are leaving to them.

Content is for informational purposes only and may not accurately reflect your specific situation. Information is not intended to provide financial, legal, tax, or accounting advice. You should consult a qualified advisor for advice specific to your own circumstances.