The Importance of Estate Planning

As a father, son, husband, brother, and friend I am no stranger to traumatic loss. I have had a few close to my heart and seen many in my line of work as a Financial Advisor. There is no good time to think about Estate Planning, but it can be one of the most important ways to mitigate the emotional and financial strain on loved ones in the event of unexpected loss. As a Certified Financial Planner professional (CFP®), here are some essential estate planning tips that could benefit you, especially from my perspective that's informed by personal experience:

1. Create or Update Wills and Trusts

• Wills: Ensure that you have a legally binding will in place. This document dictates how assets will be distributed and who will be responsible for handling the estate.
• Living Trusts: Consider establishing a living trust to avoid the probate process, which can be lengthy and costly.

2. Designate Powers of Attorney

• Healthcare Power of Attorney: Assign someone to make medical decisions on your behalf if they're incapacitated. (Reminder, you should also have any children who turn 18 to have a POA so you can act for them if they become incapacitated).
• Durable Power of Attorney: This grants someone authority to handle financial and legal matters if the individual is unable to do so themselves.

3. Address Beneficiary Designations

• Select beneficiary designations on accounts like life insurance, retirement accounts, and bank accounts. Discuss with professionals if these override what is stated in a will. These should be regularly reviewed and kept up to date to ensure they align with current wishes.

4. Discuss Digital Assets

• In the digital age, we often overlook digital assets like online banking, email accounts, social media profiles, and cryptocurrency holdings. Establishing a plan for how these will be managed or passed on is important. I can You can guide you in creating a "digital estate plan."

5. Consider Long-Term Care and Disability Planning

• Consider potential long-term care needs, especially in the event of debilitating illness or injury. This might include long-term care insurance or other resources to cover medical and living expenses.

6. Prepare for Incapacity, Not Just Death

• Death isn’t the only event to plan for—incapacity due to illness, injury, or age-related conditions can be just as disruptive. Think about both short-term and long-term contingencies for scenarios where they cannot manage their affairs.

7. Review and Discuss Family Dynamics

• Family dynamics can affect how an estate plan works in practice. Communicate openly with loved ones about wishes to avoid confusion, disputes, or misunderstandings. This can also help manage expectations in the event of a sudden loss.

8. Financial Planning for Minor Children or Dependents

• If there are minor children or dependents, it's essential to establish guardianship arrangements in a will and consider setting up trusts to protect assets for their care.

9. Funeral and Burial Arrangements

• While it can be uncomfortable to discuss, pre-planning funeral and burial arrangements can reduce stress on family members. Outline preferences or even prepay for services if possible.

10. Review Regularly

• Life changes, and so should estate plans. Review your plan regularly—especially after significant life events (marriage, divorce, births, deaths, or significant changes in financial status).

11. Consider Charitable Giving

• If you are philanthropically inclined, establish a charitable giving plan as part of your estate. This can include setting up donor-advised funds or naming charities as beneficiaries of certain assets.

Estate planning is complex and involves legal, tax, and financial considerations. Working with Mettle Financial Group, along with an attorney to create a will or trust, and a tax advisor for potential estate tax implications can get you on the right track. I can guide you through this process and help you stay on task.

Given my personal and professional experience, I am in a unique position to blend the technical, financial side of estate planning with the emotional understanding that comes from having lived through loss. Not only can I bring a depth of understanding to these conversations, I can offer advice that is both practical and empathetic.