Ok, now we’ve got that straight, I’ve got bad news for you.
Your Estate is currently at risk.
Like right now.
Things That Put Your Estate At Risk
- Lawsuit
- Dying without a Will
- Bad beneficiary designations
- Bad investments
- Taxes
Some Things You Can Do
There are a couple of proactive steps that you can take to make this process easier.
For instance, if you have multiple real estate properties in different states (or this state), it could be helpful to transfer ownership of all of them to one trust. Attorneys can help you with Trusts,but legal zoom gives you a cheap option as well.
Follow the instructions!
Not only can that minimize tax consequences in those individual states, but it usually lets you avoid probate in the event that something does happen to you. Trusts can also help individuals avoid concerns they have for how their assets will be handled once they are distributed. For instance, if you are concerned about an heir’s spending habits or ability to use assets responsibly, a trust can help you avoid the risk of that heir squandering all of their inheritance. You can establish a trust that gives specified yearly distributions or that holds assets until an age where you believe the heir may be responsible enough to handle their inheritance.
Make Sure you have a Will
Get a Will. Have an attorney draft one or draft one yourself with an online legal service. A simple Will should costs between $200-$400 for one person. Everyone needs a Will, even if your spouse has one.
Update Your Bank Accounts
Do you have an ex-spouse or dead person as your payable on death beneficiary? Change that today! Set a time to fill out the form necessary to change your beneficiary to someone you want yo get your money at death. This also helps you avoid probate.
Review Your Investments
If you have a financial planner, check out your fees. Anything over 1% a year means you should look elsewhere for financial guidance. These fees add up over time just like compound interest. Robo-advisors like betterment, Wealthfront, Acorns, and Wealthsimple all offer fixed, low-fee options for investments. You can check out our reviews on our Toolbox page. Unless your planner gets extremely lucky, he or she is not going to beat the market. Save yourself fees and simplify your investments.
More stocks and less bonds if you are younger.
Less stock and more bonds if you are less than young.
Taxes
Talk to your financial planner or a CPA about taxes once a year. If you aren’t making income (people who are retired, don’t work, or funnel revenue through a company), you probably don’t need a CPA. If you run your own business, I would recommend spending an hour or two with a local accountant.
So there you have it. Protect your assets. Ask us questions in the comments!
Stay Rational
-B&T