Podcast Episode 358: Estate Planning 101 – Why It’s Not Just for the Wealthy

The financial planning calendar has its busy seasons. Things are typically busier at the beginning of the year for tax planning and towards the end of the year as people try to figure out what they need to get done before December ends. During the summer, there aren’t any deadlines necessarily so we’ll see things slow down a bit, and that’s a great time to take a closer look at your estate plan.

In this episode of the Money Wisdom podcast, Nicholas J. Colantuono, CFP® makes his first appearance on the show to talk about the importance of estate planning regardless of how much money you’ve saved or how many assets you own. Many of us dismiss it as something only the wealthy need to worry about, but we’ll dispel this myth and explain why it applies to everyone, regardless of their net worth.

But where do you start? We’ll break it down into simple steps, beginning with the basics like regularly reviewing and updating retirement accounts and life insurance beneficiaries. We also touch on the importance of having the correct transfer on death instructions on non-retirement accounts. These might seem like minor details, but they can have significant implications for your estate.

It’s important to understand the difference between a living will and a trust, and why you might need an attorney to set these up. A living will includes medical directives, healthcare proxies, and a power of attorney—it’s where you document your wishes for a world in which you’re no longer here. A trust, on the other hand, offers privacy and control over the distribution of your assets, and there are different types for different needs.

We’ll also explain the misconceptions about wills and trusts, particularly the idea that setting up a trust is a one-size-fits-all solution for tax savings. There are conditions under which a trust can indeed be tax-efficient and other times when it might not be necessary.

For listeners in Connecticut and Massachusetts, we’ll also provide specific insights into how estate planning might look different due to the varying state tax exemptions. With the federal estate tax exemption currently set high, most people won’t be affected, but state exemptions can significantly impact your estate’s tax liability.

This podcast episode is a must-listen for anyone who wants to understand the ins and outs of estate planning. Whether you’re just starting to build your wealth or you’re looking to leave a legacy, this show will help guide you through the complex world of estate planning, ensuring that your assets are protected and passed on according to your wishes.

Here’s some of what we discuss in this episode:

• Our process for helping clients with their estate plan.  

• The differences between a will and a trust.

• A big part of estate planning is making your estate more tax efficient.

• The alarming number of people who don’t even have a will.