Your Financial Plan Isn’t Complete Without an Estate Plan

We must all take time to plan for the future. The work we put in today should serve us for years to come, and, ultimately, should serve our loved ones when we’re gone. Sitting down with a financial planner and getting your finances in order is an essential part of financial wellness, but do you have a plan for what happens to all this time and effort when you’re gone?

Your financial plan and your estate plan should work hand-in-hand. Estate planning can bleed into financial planning in the way you manage and protect your assets while ensuring you’re getting the most out of your tax dollars. So, what considerations of your estate plan need to be taken care of for a complete financial plan?

Have a plan for your home

One of the biggest financial decisions we make is the purchase of a home. A key part of the American dream is to own a home. Your finances will form around the decision to own a home, but you need to protect and preserve your home for your heirs to either keep or sell.

If you don’t have an estate plan for your home, the property can end up in a long-term dispute when you’re gone. Loved ones fighting over your hard work after putting all the time, effort, and money into securing the home can be avoided by forming a proper estate plan.

You have options to make sure your home is protected and ends up in the right hands. A will or a trust can take care of this step, though a trust is a more secure way to ensure the transfer of ownership is private and done at the time and manner you wish to have it completed. Trusts provide peace of mind to homeowners who need special circumstances to be met prior to transferring ownership to a beneficiary.

Preserve your privacy

One of the most important roles of a successful estate plan is preserving the privacy of everyone involved. Your finances shouldn’t be anybody else’s business, nor should your wishes be exposed after you’re gone.

The probate process makes all aspects of your hard work public as the courts sort out which assets go where. You don’t have to put your personal finances or your loved ones through that. Instead, you can put your assets into a trust which allows for a private and secure transfer of all assets held within the trust. However, you must properly fund the trust so it’s important to work with an attorney to avoid any issues.

Get more out of your money

As we mentioned at the beginning of this blog, a financial plan is only enhanced by having an estate plan that goes hand-in-hand with it. Your financial plan can set you up for success, but an estate plan can ensure further success by saving you money on taxes.

Certain assets held within your estate will be considered nontaxable which allows more wiggle room in your financial plan as well as additional qualifications for programs such as Medicaid. The same can be said for the heirs who will be receiving your assets as certain assets transferred through an estate will face lower taxes depending on how and when the assets are transferred.

Overall, the benefits of having an estate plan that compliments your financial plan are numerous. Your financial plan can be successful without an estate plan, but you get more out of the process if you have two plans working together. At Solan, Park & Robello, we care for your future. Contact us for a team that can make sure your estate plan is helping you accomplish the goals set forth in your financial plan.

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Solan, Park & Robello

Solan, Park & Robello is a full-service probate and estate planning firm offering experienced counsel in a wide range of estate planning matters—from preparation to administration to litigation.

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