You’re young, have little in savings, and might not have anyone relying on you, financially. So, why do you need to think about estate management?1
Here are four great reasons:
Estate Strategies: They’re Not Just for the Elderly
You need a will. You may ask yourself why a will is important if you don’t have much to pass on. A will is not just about transferring assets. It can be used to accomplish other tasks, such as naming who should manage your social media accounts once you’re gone or inherit items you’ve accumulated, like collectibles or your car.
Don’t burden others with burial expenses. Funerals can be expensive, and if you don’t have the savings to meet those costs, that burden gets shifted to others.
Consider a medical directive. This important document states your wishes for end-of-life care. In the case of an unfortunate accident, a medical directive provides instructions about the level of care you want, e.g., palliative care only.
Create a durable power of attorney for health care. In the event that you are unable to make medical decisions for yourself, this gives the individual of your choice the legal power to act as a health care proxy for you.
A medical directive and health care durable power of attorney can ensure that you are provided the level of care consistent with your wishes. They can also prevent family discord in the event of differing opinions.
Though the multiple financial goals of many young adults often require more resources than present earnings can meet, these important planning steps can be accomplished at a small cost.
To further discuss the need for an estate plan or to speak with a CapSouth advisor, call our office at 800.929.1001 or visit our website at www.capsouthwm.com
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with CapSouth Wealth Management. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright 2019 FMG Suite.
CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent Registered Investment Advisory firm. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences.
The desire to leave a legacy may be the height of altruism, for it is a gift to the future; you may never witness the benefits of it nor feel the appreciation of others.
Creating your legacy does not happen overnight, and it doesn’t come without a strategy and hard work.
Create Your Vision
You should have an end in mind before you begin. Start by reflecting on what you value and care most about. Consider your passions and the unique skills you have. Your career and hobbies are good places to start. Be sure to ask your friends and family to weigh in. They may offer insights you don’t see about yourself.
Determine Your Legacy
Think about the legacy you wish to leave and the impact you want to make. A legacy can come in many colors. It can be financial, institutional, instructional or wish fulfillment, or the passing on of values and life lessons.
Develop a Strategy
A legacy will not happen without a blueprint and the persistent pursuit of your objective. A strategy can help you organize your efforts and keep you on the path that leads to success.
Live Your Legacy
A legacy is not only what you leave behind, but the impact you make on others while alive. Be sure to live your values with your family, at work, and in your community. Nothing is more likely to survive you than your impact on the lives you touch today.
Contact CapSouth Wealth Management to dicuss your legacy. Visit our website at www.CapSouthWM.com or call 800.929.1001.
Goodreads, 2016
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with CapSouth Wealth Management. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright 2019 FMG Suite.
CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent Registered Investment Advisory firm. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences.
You’ve invested your life
into caring for your family’s wellbeing. You cherish them and want them to
mature into smart, healthy, successful adults. Naturally, as they become adults
and grow older, your authority over them recedes. They make their own
decisions, and you just hope it’s for the best.
Your feelings don’t change.
They are your children. And they’ll always be your children. The same goes for
your closest, most intimate friends. You want their futures to be safe and
secure; you want them to prosper in life. And what better way to show your
devotion and appreciation than by ensuring your hard-earned money and
investments go to them—after your passing?
In other words, how do you
keep your money in your family or within your circle of closest friends?
Estate planning is the key. Why is planning your estate so important?[i]
You avoid probate court. In many states, probate
fees can reach 5% of the value of the estate. For an estate valued at $400,000,
legal fees may reach $20,000.[ii]
Planning your estate will lessen the tax burden
on your heirs. If you die without a will, the laws of your state, not you,
govern how your estate is distributed. However, inheritance laws generally
favor spouses, domestic partners, and blood relatives. But why leave it to the
legal system to decide?[iii]
Many people who are beginning to plan their
estates seek professional financial advice following the loss of a loved one or
a close friend. While wise, the timing may be off. The best time to start
estate planning is immediately—to avoid potential worst-case scenarios, such as
mental decline or sudden death of a spouse or loved one.
Comprehensive estate planning, ironically, helps
protect beneficiaries, both adult and children. With adults, a plan helps guard
against bad financial decisions later or potential credit problems. With children,
it designates guardians or conservators to protect minors’ financial interests.[iv]
A solid estate plan with asset protection
provisions may help shield your assets from potential creditors.[v]
You’re planning to enjoy
many more years with your family and friends. What can you do now to ensure
your money goes to loved ones—as opposed to Uncle Sam?
Here are 5 ways to maximize
your family money in the here and now:[vi]
You can
spend your money and your assets, which will ultimately reduce your tax burden
and benefit your family. Obviously, your first priority is to your loved ones,
not to bolstering government coffers. The problem, however, is that you may
live a good, long life, and your goal is to ensure you don’t outlive your
wealth. This option is worthwhile if you have plenty of cash reserves and a
robust estate.
Gifts
pose the same challenge if your estate and your assets have the potential for a
long-shelf life. While giving to family and friends is noble, the IRS
establishes restrictions on giving levels. You may give up to $15,000 each to
individuals or charities before having to file gift tax returns. The maximum
lifetime gift tax exemption is $11.18 million.[vii]
You may
lend to family members and friends. However, to stay IRS compliant, you should
draft a loan note that includes the loan amount, payback date, interest rate,
and any collateral or security. This enables you to avoid the IRS’s gift
classification.[viii]
You may
pay wages to your family; 4 in 5 older Americans suffer from at least 1 chronic
disease and may need care.[ix]
By 2030, more than 1 in 5 Americans will be over the age of 65.[x]
The IRS allows for the paying of wages to family members, which helps build
their Social Security earnings record.[xi]
Services may include providing home health care or performing other household
or small business-related work.
You can
create a life estate deed, which transfers the family’s house to a child while
the parents retain the right to live in the house. Following the death of the
parents, children don’t have to go through lengthy probate proceedings. The
home transfers to children—beneficiaries or remaindermen—as a gift.[xii]
A life estate deed may also remove the home from consideration as a personal
asset when applying for Medicaid assistance for long-term care needs.[xiii]
Seek guidance from a
financial professional to learn more about your rights and opportunities to
provide for your family—even in future generations.
Contact CapSouth at 800.929.1001 or visit our website at www.capsouthwm.com to learn more about CapSouth or to speak with an advisor about estate planning.
Investment
advisory services are offered through CapSouth Partners, Inc., dba CapSouth
Wealth Management, an independent registered Investment Advisory firm.
Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness
of the information. This material has
been prepared for planning purposes only and is not intended as specific tax or
legal advice. Tax and legal laws are
often complex and frequently change.
Please consult your tax or legal advisor to discuss your specific
situation before making any decisions that may have tax or legal consequences.
This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.
CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent Registered Investment Advisory firm. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences.
