Key Components of Any Good Estate Plan
No matter your age or income level, everyone should consider basic estate planning. A well-crafted estate plan provides privacy and control over your assets, secures your legacy, and most importantly, ensures your wishes are honored and your loved ones are cared for.
Join David Shapiro in this week’s Better Money Boston with WCVB Channel 5 as he breaks down the four essential elements of a solid estate plan.
Will: Who Gets What
The most fundamental part of an estate plan is a will: a legal document that outlines how you want your property and assets distributed after your death. While your retirement accounts may already have beneficiary designations, your will addresses other important concerns, such as what happens to your property, vehicle, and other personal belongings. A will provides clear direction for how you want these assets handled, ensuring your wishes are known and followed.
Trust: How It’s Managed
You may also consider a trust for more comprehensive and flexible management of your estate, both during and after your lifetime. Depending on your specific estate planning needs, establishing a trust can serve several purposes and be a valuable investment of your time and effort.
A trust can provide greater control based on your values, potentially reduce probate costs and estate taxes, and let you decide how and when your assets are distributed — whether monthly or at certain ages. Regardless of who serves as your trustee, they must follow the guidelines you’ve set forth in your plan.
Power of Attorney: Financial Control
When life takes an unexpected turn, it’s essential to have key decisions already in place. A power of attorney (POA) grants someone you trust, such as a close relative or lawyer, the legal authority to manage your financial decisions if you’re unable to do so.
Whether due to an accident, illness, or long-term care situation, this key document eliminates uncertainty and ensures the right person is empowered to act on your behalf when it matters most. Without a POA, certain legal actions may no longer be an option.
Healthcare Directive: Medical Decisions
If you experience a serious illness or cognitive decline, your loved ones shouldn’t be left guessing about your wishes. A healthcare directive allows you to appoint a health care proxy or agent to make important medical decisions on your behalf. Having these conversations early, and putting your decisions in writing, ensures your voice will be heard and respected.
Together, your will, trust, power of attorney, and healthcare directive form the foundation of a comprehensive and well-crafted estate plan. By getting your affairs in order now, you can help shield your loved ones from having to make difficult financial or medical decisions during an already challenging time.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Tariffs and Your Retirement
With growing concerns about rising tariffs and ongoing trade disputes, you may be wondering how these policy shifts could impact your retirement. While the situation around tariffs has stabilized … -
Staying Ahead of the Tax Curve
Retirement doesn’t mean you stop paying taxes – but there are ways to minimize the bite in the long run. With thoughtful, proactive tax planning, you can stay ahead of the curve and keep more of w… -
How Much Will I Get from Social Security?
When planning for retirement income, it’s important to have a clear idea of how much you can expect to receive. However, estimating your future Social Security benefit can be complicated. Your … -
Podcast Episode 411: What Happens to My Money After I Die?
Prefer to watch? Click here to watch and listen on YouTube. No one wants to think about life after they’re gone, but ignoring what happens to your money can leave your loved ones confused and v… -
How to Jumpstart Your Retirement Planning
Retirement planning can feel overwhelming, especially after decades of hard work and diligent saving. With so much to consider, how can you ensure your money lasts as long as you do? The good news… -
What Estate Planning Steps Should I Take?
With retirement on the horizon, you may be wondering what steps you should be taking from an estate planning standpoint. At its core, there are three key estate planning considerations to keep in … -
Case Study: What Should My Investment Portfolio Include?
As you approach retirement, your investment strategy must shift from aggressive growth to a focus on income generation, asset preservation, and moderate growth to outpace inflation. Consider th… -
Avoiding the Retirement Tax Trap
Once you retire, understanding your tax implications becomes even more crucial. After all, taxes don’t disappear in retirement. In fact, as you begin withdrawing from your retirement savings, you … -
Retiring In Uncertain Times
During times of economic uncertainty, it’s natural to feel overwhelmed. It seems like every day there’s a new update from the markets. But rather than reacting to the noise, focus on why you have … -
Understanding Retirement Planning
Planning for retirement isn’t just about saving – it’s about making smart financial decisions at every stage of life. A better understanding of the financial industry can help you avoid costly mis…
