If the word “retirement” makes you cringe, you may be one of the many family business owners who can’t imagine ever fully stepping down from your company. Even as you establish a business continuation plan, mentor the next generation, and relinquish some responsibilities, you may picture yourself still involved in some capacity with your business for many years to come.

What do you think of when you hear the words long term care (LTC)? The first image that may come to mind is an older adult who requires constant care, along with various medical treatments and procedures. But, this is not necessarily the reality of LTC for many of us. Far more frequently, it involves services that help an individual cope with a reduced level of functioning for a temporary or indeterminate period of time. This includes a wide range of care options delivered in various settings, including at-home care, an assisted living facility, or a nursing home.

Have you thought about what would happen to your family and your business if you were to need LTC at some point in the future? While it’s true that the majority of people needing LTC are over age 65, what you may not know is that approximately 40% of current LTC recipients are ages 18 to 64.[1]The need for extended care can come about suddenly, as a result of sustaining an accident or illness, or gradually.

As a business owner, planning can be important to help prevent a LTC event from interfering with future plans for your business. For example, a family member or members may need to scale back their responsibilities or even step down from a role in the business in order to provide caregiving. Or, the business and its assets may need to be liquidated to pay the costs of a nursing home or other extended care costs. If you own a family business, you may want to consider taking steps nowto help this valuable asset remain intact for your children, grandchildren, and beyond.

LTC Insurance

LTC insurance can play an important role in the future of a family business. In general, the cost of a policy varies with the daily benefit amount chosen, the maximum benefit amount, and the elimination period (the number of days for which the insured is responsible for his or her own care before benefits begin). LTC insurance policies can be customized to include inflation protection, which helps the policy benefits keep up with the rising cost of health care by increasing the benefit in line with inflation. It’s important to note, however, that adding any riders may involve an additional premium.

What’s covered?

LTC insurance helps cover the following care options:

• Skilled nursing care—around-the-clock medical care under a doctor’s supervision, typically provided by registered nurses and/or certified nursing aides in a nursing home;

• Assisted living facility—residential facilities that offer social support with several tiers of independent living, including varying levels of assistance with daily activities under the supervision of licensed professionals and qualified staff;

• Adult day health services—community social day programsthat provide light physical activityand cognitive stimulation among peers in a supervised group setting.

• Custodial or at-home care—in-home assistance from a certified home health aide with daily activities, such as meal preparation, bathing, doctor’s visits, housekeeping, etc., to help maintain independence longer.

As a family business owner, you may mitigate the financial risk of extended care, have more care options, and manage the potential burden of caregiving on family members with this type of insurance. A dual strategy of open and honest communication with family members and the guidance of a LTC insurance professional can help prepare your business ownership and assets for future generations.

LTCFAMBS-X

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.

This article was prepared by Liberty Publishing, Inc.

LPL Tracking #1-05184916

[1] U.S. Department of Health and Human Services National Clearinghouse for Long Term Care Information, 10/22/08.

The post Long Term Care Planning appeared first on Tribox Private Wealth.

Are you financially prepared for a life-changing event? This checklist is the first step to help you prepare for these events now or in the future.

☐  Getting married

Getting married is an exciting time. Two people have fallen in love, and whether it is their first time at the altar or they are giving it a second chance, they are preparing to spend a lifetime together. However, weddings are not just about champagne, cake, and presents. It also combines two lives into one: physically, emotionally, and financially.

One of the most common stressors that couples face in marriage is their financial situation. Consulting a financial professional as you transition into married life may help mitigate some of the unease and unforeseen challenges that appear. A few things a financial professional could help you with include:

• Creating a budget

• Designing a savings plan for retirement goals
• Preparing an emergency account for unexpected events
• Learning about and planning for possible risks

☐  Buying a house

A home might be the largest purchase you make in a lifetime. Financial professionals do more than help you budget and create strategies for retirement. They can also help people when it comes time to buy a house. There are financial aspects to purchasing a home that can blindside homebuyers later on down the road. Learning what steps to take beforehand can help you mitigate unnecessary issues in the future. Some of these concerns may include:

• What is your break-even point and how long will it take to recoup the costs?
• Do you have the cash for the down payment (enough not to have to pay private mortgage insurance and an additional monthly fee to protect the lender from a default on your loan) and for closing costs?
• Besides the mortgage, what other expenses should you be aware of?  Are you prepared to pay for homeowners insurance, property taxes, utilities, and other unforeseen costs?
• Would a down payment assistance program affect your short-term or long-term financial goals?

☐  Birth of a child

Raising children is a costly undertaking. According to CNBC, raising a child costs more than $230,000 for a middle-class couple until the child leaves home, and that doesn’t include college expenses. More than ever before, parents are turning to financial professionals for help with navigating their financial circumstances as they plan how to pay for childrearing expenses. Although these numbers will not be the same for everyone, here are a few annual costs involved in raising a child to consider:

• Childbirth or adoption: $4,500 to $43,000
• Housing: $3,750
• Food: $2,794
• Healthcare: Can vary significantly
• Daycare and education: $37,400
• Clothing, Toys, and Miscellaneous: $2,856
• Transportation: $1,947

☐  Changing jobs

You might be switching jobs or embarking on a new career path, and it is an exciting time; however, depending on the circumstances, it can also be stressful. How can a financial professional assist you? Each person’s situation is different, but some decisions you may encounter that could affect your financial plans include:

• Comparing benefit packages or incentive stock options
• Enrolling in your new retirement plan
• Deciding what to do with your old retirement account
• Determining the new job’s impact on current and long-term strategies
• Potential relocation costs

☐  Saving for college

The cost of a four-year college these days is closing in on the cost of a medium-sized house, and in 2023, the average cost of attending a four-year U.S. college will be $28,210 for residents and $38,394 for out-of-state students annually. The cost to attend a private four-year school is even higher at $43,795.

If a young parent begins saving for their child’s college at birth, perhaps $500 a month and assuming an annual return of 6%, when the child reaches 18, you could potentially have around $190,000. A financial professional can help parents determine which college savings plans could work with their financial strategy. Here are some options to consider:

• Financial aid and scholarships
• 529 plan
• Coverdell Education Savings Account
• Custodial accounts
• Personal savings
• Permanent life insurance

☐  Death of a spouse

Losing a spouse is one of the most difficult events we can experience. Along with coping with the grief and managing a funeral, the surviving spouse will also have financial decisions that require their attention, for example:

• Managing tangible assets and updating what is needed
• Updating financial accounts
• Preparing funeral and memorial service expenses
• Reviewing short-term financial concerns
• Reviewing long-term financial goals and strategy

☐  Divorce

In the United States, 35%-50% of first marriages and 60% of second marriages end in divorce. Although each situation will be unique, overall, the divorce process can be emotionally draining and financially complex. Consulting a financial professional can help you learn more about your current circumstance and how post-divorce may impact you financially. Helpful documents a financial professional might analyze to help you manage your finances through this difficult time may include:

• Bank statements
• Bills
• Credit card statements
• Life insurance policies
• Documentation of other income streams
• Mortgage statements
• Investment portfolio statements
• A list of debts
• Pension information

☐  Diagnosis of a terminal illness

When a doctor diagnoses a loved one with a terminal illness, it is a very emotional time. There will inevitably be financial implications and people experiencing the impact of the diagnosis may find it challenging to consider these decisions with a clear mind. A financial professional can help families develop a financial plan and get their affairs and assets in order according to their wishes. Here are a few estate planning steps to consider:

• Organize legal, financial, and other important documents
• Update beneficiaries
• Create a plan for health care expenses
• Designate a durable power of attorney
• Arrange care for any dependents
• Consider options for end-of-life care

☐  Planning for aging parents

Taking on the responsibility of caring for aging parents can be rewarding. However, it may also be emotionally and financially daunting. There are health care and home care costs, housing expenses, and an uncertain amount of time involved. Making these decisions should be considered with both compassion and clarity so you can better plan for your parents’ health care needs. It is a sensitive topic and, as a third party, a financial professional may be able to help you explore your options and assist with:

• Budgeting both short-term and long-term fiduciary responsibilities
• Performing a comprehensive review of all assets and debts
• Create a manageable strategy for paying debts down
• Setting up payment plans for ongoing expenses
• Preparing for unexpected costs or emergencies

☐  Starting a business

When you decide to start a business, many moving parts come into play and you could face numerous financial challenges and complexities. Business owners create businesses for a number of reasons, from a love of the industry to financial viability. However, all business owners have something in common: financial decision-making. Whether you are in the startup phase or you have been in business for years, working with a financial professional can help you:

• Manage any mistakes that might occur
• Navigate the risks involved with financial decisions
• Design short-term and long-term strategies and goals
• Provide guidance on keeping your personal and business finances separate
• Create money management and budgeting strategies

Are you ready to start planning your future today?

Inevitably, some events that happen to us will be life-changing; however, with a little help and preparation, these events don’t have to lead to financial ruin or hardship. As Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” Planning today is the first step to a confident tomorrow. Whether you are embarking on a new journey and need some direction or looking for someone to help you navigate and update your old financial roadmap, schedule an appointment with your financial professional and start planning your future today.

Sources:

Things Financial Planners Wish You Knew About Buying a Home (realtor.com)

2023 Average Cost of U.S. colleges (collegetuitioncompare.com)

Here’s some advice financial advisors offer to new parents (cnbc.com)

Divorce Rate by State 2023 (worldpopulationreview.com)

A Guide to Divorce Financial Planning (2023) (survivedivorce.com)

A Breakdown of the Cost of Raising a Child – The Plutus Foundation

Managing Finances During and After Divorce: 8 Considerations | Comerica

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or insurance product(s) may be appropriate for you, consult your financial professional prior to investing or purchasing.

Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

Please keep in mind that insurance companies alone determine insurability and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices.

This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by Marketing Solutions.

LPL Tracking #1-05372847

The post A Financial Checklist for Life-Changing Events appeared first on Tribox Private Wealth.

1. To Ensure the Business Will Continue

One of the biggest reasons small business owners purchase life insurance is for the continued survival of their business after their death. When a small business owner passes, finding people to replace their responsibilities and deal with all of the costs of succession may be an unnecessary struggle. A life insurance policy will help your business to find a suitable replacement for your duties, help pay off business debts to improve company cash flow and provide the company with the funds to handle unexpected expenses that may come up. If you have a life insurance policy with a cash value, you will also have the ability to tap into those funds if the business is struggling. This is an added benefit many life insurance policies may bring.¹

2. To Satisfy a Partnership Agreement

You probably have a partnership agreement if you own a small business with others. These agreements plan for the event of death or disability of one of the partners. In most agreements, the remaining partners will be able to buy out the shares of the partner who passed or became permanently disabled. Even when business is good, it may be difficult for the other partners to buy the shares from the survivor’s family, depending on their equity. The life insurance policy will often be used to buy these shares from the deceased partner’s heirs.¹

3. It May Be Required for a Loan

Suppose you fund your business with a small business loan or have taken one out to gain additional capital. In that case, the bank may require a Buy/Sell agreement and life insurance policy for the business owners that are guaranteeing the loan. While this is not always a requirement and will depend on the loan amount, the bank, and their underwriting requirements, it may be expected if the lender suspects the business may struggle if the owner were suddenly gone. Essentially, the bank will want to ensure that their debt will be covered in the event of your death, which means the policy will typically need to be a larger amount than the loan debt if required.²

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual or business owner. To determine which insurance product(s) may be appropriate for you, consult your financial professional prior to purchasing.

This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05361929

^Footnotes:

¹ “Life Insurance For Business Owners: Types, Tips & More,” Forbes https://www.forbes.com/advisor/life-insurance/life-insurance-for-business-owners/

²  ”Protect the Future of Your Small Business With Life Insurance—Yes, Life Insurance,” All Business, https://www.allbusiness.com/protect-the-future-of-your-small-business-with-life-insurance-104608-1.html

https://www.irs.gov/pub/irs-pdf/p3998.pdf  (found on this IRS site- https://www.irs.gov/retirement-plans/retirement-plans-for-small-entities-and-self-employed)

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Fortunately, there are steps you may take to mitigate these stresses and develop a strong action plan. Here are four tips to help sandwich generation members survive and thrive during this season of life.

Prioritize

No one handles it all alone. One way to manage stress involves focusing on the most important tasks and letting others slide. For example, if you are deciding whether to spend the next two hours mopping your kitchen floor or working on a time-sensitive task for your job, the highest priority is likely to be your job.

Other decisions might be more complex. Having a broad idea of what value to place on various categories such as work, marriage, parenting, social obligations, volunteering, and household tasks may help you make prioritized choices.

Delegate and Put Others to Work

As more tasks demand attention, some may need to be dropped, and others delegated. This situation is where prioritization comes in. Being in the sandwich generation means having others—including those you care for—available to help. You may want to delegate certain household chores to your teenagers, ask your spouse to take on responsibilities you have previously handled, or lean on siblings to help with your parents.

Consider an In-Law Suite

Not every adult child wants to share a home with their parents, even in a healthy relationship. However, an in-law suite may be worth considering for many families when minor children and aging parents require care and oversight. With this strategy, you have your entire family under one roof instead of being spread too thin.

Having an in-law suite as a separate living space for your parents might lower friction. They may provide extra help when needed—supervising homework, shuttling teens to practice, helping with meals, and taking on other household tasks. You are also close enough to assist your parents when they need help and have the opportunity to be the first to notice when they begin to need a higher level of care.

Hire Help When Necessary

If you struggle to finish your to-do list each day, evaluate what tasks are good for hired help to perform. You may benefit from dog walkers, lawn care workers, and house cleaners. There are meal preparation services, nannies, and drivers. A wide range of workers may take on duties that would otherwise fall to you.

The expansion of the app-based gig economy has made it even easier to find reliable workers. Perhaps you want a seasonal deep-cleaning of your home or are looking for a long-term childcare, pickup arrangement. If the budget allows, you might be able to find the help you need.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This article was prepared by WriterAccess.

LPL Tracking #1-05370157

The post 4 Sandwich Generation Survival Tips  appeared first on Tribox Private Wealth.

What is it?

Caring for your aging parents is something you hope you can handle when the time comes, but something you probably hope you never have to do. Caring for your aging parents means helping them plan for the future, and this can be overwhelming, both physically and emotionally. When the time comes for you to take care of your parents, you may be certain of only two things: Your parents need you, and you need help.

Start planning

Talk to your parents about the future

Start caring for your aging parents by talking with them about their needs and wishes if they are able. In some cases, however, they may not be willing to talk to you about their future, either because they are afraid to face it or because they resent your interference. If this is the case, you may need to do as much planning as you can without them, or, if their safety or health is in danger, step in as caregiver anyway.

Prepare a personal data record

The first step you should take is to ask your parents to help you prepare a personal data record (if they are unable to help you, you’ll have to search for the information yourself). A personal data record is a document that lists information that you might need in case your parents become incapacitated or die. Information that should be included is financial information, legal information, medical information, insurance information, and information regarding professional advisors and the location of important records.

Example(s): When Marcia and her mother prepared a personal data record, Marcia realized that her mother did not have a durable power of attorney or health care proxy in case she became incapacitated and could not make decisions about her medical care. The next day, Marcia made an appointment with her mother’s lawyer to discuss this issue.

Get advice

You can’t know everything, and you probably don’t have enough time to learn everything you need to know to care for your parents. That’s why you should seek advice from professionals. Some advice will be free, and some you will have to pay for. If you live far from your parents or are too overwhelmed to handle all your parents’ affairs, you can hire a geriatric care manager who will evaluate your parents’ situation, suggest options, and coordinate professionals who can help. In addition, talk to your employer. Some employers have set up employee assistance programs that offer advice and assistance to people who are dealing with personal challenges, including caring for aging parents.

Get support

Don’t try to care for your parents alone. Many local and national caregiver support groups and community services are available to help you cope with caring for your aging parents. If you don’t know where to start finding help, call the Eldercare Locator, an information and referral service sponsored by the federal government that can direct you to resources available nationally or in your area. Call the Eldercare Locator at (800) 677-1116.

What kind of advice will you need?

Housing and health care advice

If your parents are like many older individuals, where they live will depend upon how healthy they are. As your parents grow older, their health may deteriorate so much that they can no longer live on their own. At this point, you may need to find them in-home health care or health care within a retirement community or nursing home. On the other hand, you may want them to move in with you. In addition, you will need information on managing the cost of health care, long-term care insurance, major medical insurance, Medicare, and Medicaid.

Contact:

• National Association for Home Care
• Visiting Nurse Associations of America
• Centers for Medicare & Medicaid Services (formerly known as the Health Care Financing Administration)
• American Association of Homes and Services for the Aging
• American Association of Retired Persons (AARP)
• Health Insurance Association of America

Financial advice

If your parents need help managing their finances, you may need to contact professionals whose advice both you and your parents can trust, including one or more of the following individuals or organizations.

Contact:

• Your financial planner
• Your banker
• Your investment counselor
• Your tax attorney
• The Social Security Administration

Legal advice

Legal advisors can help you plan for your parents’ incapacity (including preparing documents such as power of attorneys, medical directives, and living wills), contact nursing home ombudsmen, set up and monitor guardianship, prepare wills, give tax advice, and provide bill payment and representative payee assistance. Many states provide funds for the delivery of free legal services to the elderly and many attorneys specialize in elder law, so finding legal advice shouldn’t be difficult.

Contact:

• Your attorney
• National Association of State Units on Aging
• American Bar Commission on the Legal Problems of the Elderly
• Legal Counsel for the Elderly

What kinds of support and community services will you need?

Caring for your aging parents will be easier if you know what kinds of support and community services are available and where to locate them. The following is a list of the kinds of support and community services you can find locally and nationally, along with specific suggestions of who to contact for information.

Adult day care

If you need to work or run errands and you can’t leave your parents alone, consider using adult day care. These programs are located in hospitals, churches, temples, nursing homes, or community centers. Many are private nonprofit organizations. Adult day care can be expensive but is sometimes subsidized by the government, and fees may be based on a sliding scale. In addition, Medicare, Medicaid, long-term care insurance, or your health insurance may pay part of the cost.

Contact:

• Your local senior center or community center
• National Institute on Adult Day Care
• The Alzheimer’s Association

Caregiver support groups (self-help)

Many self-help groups are available to provide information and emotional support on broad topics (such as aging) or specific topics (such as heart disease). You may find these support groups helpful if you know little about caring for your aging parents. Such groups might also provide an opportunity to help others by sharing your experiences.

Contact:

• The Alzheimer’s Association
• Children of Aging Parents
• National Self-Help Clearinghouse

Caregiver training/health education

You may feel better about taking care of your parents if you are armed with knowledge. You may want to complete first-aid courses or take classes in gerontology.

Contact:

• Your local college or university
• Your local hospital
• The American Red Cross

Geriatric assessment

If you are uncertain of your parent’s mental or physical capabilities, ask his or her doctor to recommend somewhere you can take your parent to undergo an assessment. These assessments can be done at hospitals or clinics. Your parent will be evaluated to determine his or her capabilities. The evaluation determines whether the individual can take care of himself or herself on a day-to-day basis, including such things as bathing, dressing, eating, using the telephone, doing housework, and managing money. Based on this evaluation, you and your parent will receive advice regarding care options.

Contact:

• Your doctor
• Your lawyer
• The National Association of Professional Geriatric Care Managers
• Aging Network Services

Respite care

When you are caring for your aging parents, you may feel guilty or even resentful because you don’t have limitless energy. Taking care of your parents is hard work, however, and everyone needs a break once in a while. If you are caring for your aging parents, look into respite care. Medicaid may pay for some respite-care services.

Contact:

• Your doctor
• Your local hospital
• The Alzheimer’s Association
• National Association for Home Care

Financial and tax considerations for you

Caring for your aging parents is not only an emotional burden for you but may be a financial one as well, depending upon how well off your parents are and how much caring for them costs. Because many adults today are becoming first-time parents in their thirties, and others are remarrying and rearing second families, increasing numbers of adults are finding themselves in the “sandwich generation.” They face having to pay expenses of growing children (including college expenses), plan for their own retirement, and support their aging parents financially. Thus, it’s important to plan not only your parents finances, but your own as well.

Financial planning for your parents

Making sure that your parents won’t outlive their money is a critical step in ensuring that your own finances will remain sound. In particular, you’ll need to make sure that your parent is receiving all the benefits to which he or she is entitled and that his or her money is invested wisely. You’ll also need to create a financial profile for your parents, a statement that includes income, expenses, and net worth. If, after considering your parent’s financial condition, it’s clear that they won’t have enough resources to pay for their own care, you’ll need to find ways to supplement their income. You may need to look at Supplemental Security Income (SSI), for instance, or ask other relatives for help. You’ll also have to determine how much financial support you can give your parents (see below).

Financial planning for you

Besides caring for your parents, you have a lot of other financial obligations. Before you can determine the best way to help your parents financially, you’ll have to look at your own financial picture. Not only will you need to consider your current expenses, but you’ll have to look down the road a few years, considering how much you’ll need to save for your own retirement and, perhaps, for your child’s education.

Tip: Due to the complexities inherent in providing adequately for several generations in the same family, consider seeking the advice of a financial professional.

Tax benefits for children supporting aging parents

Federal income tax law provides several tax benefits to you if you are supporting your parents financially. If you have a dependent care account at work, you can put pretax dollars into the account that you can use to pay for some costs associated with caring for your dependent parents. You may be able to claim an exemption for your parents as dependents, and you may be entitled to claim a dependent care credit. In addition, you may be able to file your taxes as head of household and deduct medical expenses you paid for your parents. For more information consult your tax advisor.

Questions & Answers

If you are financially supporting your parent, is he or she entitled to receive Social Security benefits based on your earnings?

If you are providing at least one-half of your parent’s support at the time of your death, and he or she is age 62 or over and is not entitled to a retirement benefit that is equal to or larger than the amount he or she would receive based on your earnings record, then he or she may be entitled to receive a parent’s Social Security benefit equal to 82.5 percent of your primary insurance amount (PIA).

This article was prepared by Broadridge.

LPL Tracking #1-292959

The post Caring for Your Aging Parents appeared first on Tribox Private Wealth.

1. Create an Inventory of Physical Assets

One of the first steps in creating an estate plan is knowing what you have, so you may list the items to include in the estate. For many people, working from the inside of the home is easiest. Start by assessing the items in your home that are valuable. These valuable items may include collectibles, jewelry, artwork, antiques, electronics, and power tools. This list may take some time to build, so creating it at a comfortable pace over multiple sessions might be appropriate.¹

2. Take Stock of Your Non-Physical Assets

You may also need to inventory your non-physical assets. These non-physical assets might include life insurance, long-term care, and health insurance policies. They also may include money sources, such as 401(k)s, IRAs, investments, and bank accounts. You want to include in your inventory the account numbers and documentation for these accounts.¹

3. Document Your Obligations

Your debts, such as loans and credit cards, should be itemized with account numbers, contact information, and where you keep your documentation on these debts. This strategy helps ensure that the estate pays off any required debt obligations, which the estate must pay from estate funds.¹

4. Consider Transfer-on-Death Assignments

With some assets, it is possible to bypass probate for those items, even if you pass away intestate (without a will), by creating a transfer-on-death designation for those assets. When these transfer documents are on file with certain accounts, the beneficiary might be able to receive the funds without having to wait for the completion of probate. Some of these types of accounts, which may have the option of a transfer-on-death designation, include savings accounts, brokerage accounts, and certificates of deposit (CDs).²

5. Make a Will

Your will serves as the instructions about how you wish to distribute your assets. This document helps ensure that your heirs know what you wish to happen with your estate. Having a will may reduce infighting among heirs. Your will designates who your beneficiaries are and what they get. It may cover custody of minor children and any charitable contributions you wish to make. You need to sign your will in front of witnesses. Be certain that its location is known to the executor of your estate to prevent delays in the will’s execution.²

Estate planning does not have to be a headache. Following these simple tips and taking the time to document your assets properly may make estate planning more manageable.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking # 1-05367403

Footnotes

¹ Estate Planning: 16 Things to Do Before You Die
https://www.investopedia.com/article /10/estate-planning-checklist.asp

² Estate Planning Basics
https://www.forbes.com/advisor/retirement/estate-planning/

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