Benefits of Planning

Controlled estate planning will systematically uncover problems and gaps in your estate and provide solutions. For example, you can plan against:

  • Excessive transfer costs: The improper plan or group of documents might cause too much tax, payable too soon.
  • Lack of liquidity: Or not enough cash to pay taxes and other predictable expenses could result in the forced sale of your liquid assets or other income producing property. This is an especially critical factor for owners of closely held businesses or investment real estate.
  • Improper disposition of assets: This could result in the estate being disposed of in equal but inequitable shares among your children, even if their needs vary greatly. It may also be an improper disposition of assets to leave two or three hundred thousand dollars in life insurance to a 21-year-old child or to a spouse – without the benefit of a trust arrangements to prioritize for proper investment – or to preclude wild spending.
  • Inadequate income if disability occurs: Electing the maximum benefits from your employer-sponsored plans, and filling in the gaps with personal disability coverage and insurance waivers of premium.
  • Inadequate income for your family at your death: To maintain your standard of living, the family will typically need 80 percent of your present gross income. This must be adjusted periodically for inflation, additional debts incurred, education funding needs and special family circumstances.

How to Proceed

Consult with a professional financial advisor to check all your insurance. review your will and trust, making sure these documents will do what you want them to do in the most effective manner.

Inform your heirs, before they become heirs, where your personal and financial documents are located – especially a durable power of attorney. If you are married, measure your needs annually, establish your priorities, and then develop and put into effect plans to make sure that your financial future is sound.

It is not necessary to cancel and entirely redraw your legal instrument. A will can be modified by a codicil (amendment), and some forms of trust agreements are also subject to alteration. Of course, your attorney will be familiar with the correct procedures.

Neither Lion Street Financial, LLC, nor its registered representatives, offer tax or legal advice. Federal tax laws are complex and subject to change. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.

Pursuant to requirements imposed by the Internal Revenue Service, any tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for purposes of avoiding penalties imposed under the United States Internal Revenue Code or promoting, marketing or recommending to another person any tax-related matter.  Please contact us if you wish to have formal written advice on this matter.

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Advisor Launchpad to provide information on a topic that may be of interest. Advisor Launchpad is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Securities offered through Lion Street Financial, LLC., member FINRA/SIPC. Investment advisory services offered through Lion Street Advisors, LLC. Fixed and traditional insurance offered through Feliciano Financial Group (FFG). Medicaid planning and consulting offered through Geriatric Care Solutions (GCS). FFG and GCS are not affiliated with Lion Street Financial, LLC.

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