Why Should Estate Planning be a Part of Retirement Planning?
Curtis has earned the Life and Health Insurance licensure, has passed the Series 66 examination, and has earned a degree from the University of Nevada, Reno. He has over 20 years of experience in the financial industry, helping others protect, grow and manage their wealth. Curtis helps clients create customized strategies for their portfolios based on their unique financial goals.
WHY SHOULD ESTATE PLANNING BE A PART OF RETIREMENT PLANNING?
Estate Planning is one of the five areas we believe you should focus on in your retirement planning, and some of you may be wondering why this is so important.
I understand that many times people aren’t necessarily leaving a legacy in place or leaving something behind to beneficiaries. In fact, it is quite common for many retirees to say that they would like to spend their last dollar on their last day. The odds are that things won’t quite work that way, so making sure you have a plan for your Estate is important. Let’s discuss a couple of the main reasons why Estate Planning should be a part of your retirement planning.
AVOIDING PROBATE
First, I would say the most important piece of Estate Planning for many is to avoid probate in the state they are living in. Here in Nevada, probate can take anywhere from 6 to 12 months, that is a long time for your estate to be living in limbo. It can also be a lengthy and confusing process, as you can see through this resource from Clark County. There is a checklist of about 46 different line items for someone to follow, usually a family member, when settling the Estate. So, the question becomes, how to avoid probate. The most common answer would be to have named beneficiaries on your account or to have a Living Trust in place. Depending on the account type or asset type, how those beneficiaries are titled and how the Living Trust is written plays an important role from taxation to distribution of assets.
PREVENTING CONFUSION WITH LOVED ONES
The next most important reason I would say why an Estate Plan is important is that you keep control of where your assets go once you pass on. If there is a clear and concise Estate Plan in place, the assets you leave behind will go to whom you have designated and to whom you wanted to have that particular asset. This can alleviate any legal issues that may come up, as I have seen several times that fighting over an Estate can break a family apart, cause legal issues, and just make life miserable for your loved ones.
WHERE TO GO FROM HERE
There are other reasons why an Estate Plan is an important part of Retirement Planning, but I wanted to focus on these two because of their level of importance. It is one of the not so fun parts of planning for retirement, but as we all know, retirement most likely occurs in the latter part of our lifetimes and having an Estate Plan in place will save you and your beneficiaries a headache if it is established properly as part of your overall plan. Our advisors at Cornerstone know that estate planning is a vital piece of the retirement puzzle. We take a comprehensive approach to make sure our clients live out their dream retirement. To see what your plan would look like, call our office at 775.853.9033.
Based in Reno, NV, Cornerstone is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.
PCIA, Cornerstone and their representatives provide general information, not individually targeted personalized advice, and are not liable for the usage of the information provided. Exposure to ideas and financial vehicles should not be considered investment advice or a recommendation to buy or sell any of these financial vehicles. This information should also not be considered tax or legal advice.