Five Estate Planning Steps From a Wealth Adviser to Protect Your Family

Article Summary

• Create a Comprehensive Estate Plan
  Develop a solid estate plan using either a will, a trust, or both. While wills are simple and affordable, trusts can help avoid probate and provide tax planning benefits. For families with minor children, a will is crucial for specifying guardianship.
• Leverage Digital Tools
  Utilize digital platforms like Cake (a free online tool) or GoodTrust to securely store and organize important documents, passwords, and end-of-life preferences. These digital vaults make it easier for family members to access critical information during difficult times.
• Invest in Appropriate Life Insurance
  Choose life insurance that protects your family's financial future. Consider term life insurance for cost-effective short-term coverage, or explore whole life or universal life policies for longer-term financial protection and potential cash value growth.
• Optimize for Taxes and Open Communication
  Work with a financial adviser to minimize tax liabilities, especially for high-net-worth families. The current federal estate tax applies to estates exceeding $13.99 million. Most importantly, create an open dialogue with family members about your estate plans to prevent future disputes and ensure your legacy is understood.