October is Estate & Gift Planning Awareness Month and a great time to make sure that your financial, estate and gift plans are up-to-date.
Estate & gift planning is a financial process that can protect you and your family and is a very important component of your overall financial planning. Now is the perfect time to put your clients and your estate & gift planning house in order.
If you don't have an up-to-date estate & gift plan and you:
- Happen to get hurt or sick and cannot manage your financial affairs, the courts will have to appoint someone to manage them for you. The person they appoint might not be the one you would want to perform those tasks.
- Pass away, your affairs will be settled by default through a complex legal system called "probate." The handling of your financial affairs can turn into a costly and frustrating ordeal for your family and heirs. Your assets may not pass to their desired party, and there is no way for your assets (significant or modest) to get to your favorite charities or causes unless some advance arrangements are made.
Assets pass at death by title, beneficiary designation, and if there is no will or trusts via the state laws of intestate succession which by default goes to close, then distant, family. If none exist they then revert to the state of domicile after taxes and costs.
The crafting of a good estate plan starts with planning, followed by the proper drafting and signing of appropriate legal documents such as wills, trusts, buy-sell agreements for business owners, durable powers of attorney for financial management, and an advance health-care directive or health-care power of attorney. Having these documents in place saves you and your family a lot of money and time at a very difficult and emotional time. It also allows you to pass on your values, knowledge and assets to future generations and your charitable causes to help make this a better world.
