Estate or legacy planning is a vital way to help you plan for your family’s future. It involves two steps: - Making legally effective arrangements to preserve your wealth
- Employing effective strategies for transferring your wealth
Strategies for Preserving Your WealthHere are some key actions you can take now to help you save for your family’s financial future. Update Your Will
Having a will is important. Equally important is the task of ensuring it is current and comprehensive. Ideally, you should meet with your financial or estate planning professional and legal counsel at least once per year to make updates and optimize your wealth preservation strategies, including tax and wealth transfer strategies. Assess Your Estate Value and Tax Implications
Make a list of all your assets — everything of financial and personal value which you wish to preserve and pass on — to ensure that nothing is mistakenly omitted from your will. Evaluate the value of each item, and work with your financial professional to plan tax mitigation strategies. Name Your Beneficiaries
All beneficiaries of the wealth you have saved should be explicitly named. To ensure your wealth is effectively preserved and transferred, be sure to add or remove beneficiaries as needed, and include any special arrangements or instructions for atypical beneficiaries or assets. Talk to Your Family About Your Legacy
Talking to your family about your legacy can be helpful and healthy for everyone. It can build your family’s confidence for the future and help prevent conflicts. You can also take the opportunity to provide useful information about what you have saved and how you want it preserved and passed to the next generation. Get Financial Advice
When planning your legacy, you should employ the services of appropriate professionals. This usually includes legal counsel and financial professionals who can provide knowledgeable guidance. Personalized, professional advice is key to forming a comprehensive and effective estate plan for preserving your wealth over generations. Strategies for Transferring WealthYou’ll need to determine the most efficient strategies for the transfer of your wealth to help minimize the effect of taxes on your estate and your family’s financial future. Trusts and estate gifting are two of the more common strategies for passing on wealth. Here are some other strategies. Bequeath a Vacation Home
Owning real estate beyond your family home can be a wise investment, as the value of land typically appreciates over time. Vacation homes with high sentimental and monetary value are worth considering as a means to transfer wealth. Name Children or Grandchildren as Roth IRA Beneficiaries
Different individual retirement accounts (IRAs) offer strategies for transferring wealth to beneficiaries, providing them with a reliable income stream throughout their lives. Roth IRAs offer tax-free distributions for beneficiaries who meet the five-year holding period. Pass Wealth Through Annuities
Annuities are sold by insurance companies or other licensed financial professionals. They can provide another source of fixed income for beneficiaries. Use Insurance as an Asset
Insurance can provide a straightforward way to protect and transfer wealth to beneficiaries. Strategies like second-to-die joint life insurance policies offer cost-effective options for leaving benefits to heirs and children, with potential tax advantages. Gift Depreciating Stocks to Charity
Charitable giving is one way to help reduce your tax bill. Donating depreciated stocks, while passing on more valuable stocks to family beneficiaries, can create a win/win scenario for everyone. Start Planning Today
Start taking some proactive measures to safeguard your legacy and plan for your family’s financial future. Let’s schedule some time to discuss your estate plans and wealth transfer strategies. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera nor any of its representatives may give legal or tax advice. The guarantee of the annuity is backed by the claims paying ability of the issuing insurance company. | 
