Real estate plans recommended for most households

Financial Planners


When I meet prospective financial planning clients, I am often surprised by their first question.

Initially, they do not focus on promoting their investments, stock recommendations, or portfolio returns. Instead, they want to know details about their lives such as their age, income, ages of children, who pays taxes, and has done estate planning.

Many of them think real estate planning is only for the rich, so they answer no to this last question.

You have to decide where your money and your belongings go. Rich or not, you have money and stuff. And you probably care who gets it when you’re gone.

Hello, this is Estate Planning.

We financial planners are often the first line of defense to spot red flags and refer clients to real estate planning attorneys every week.

So how do you get started? You may already have one.

Beneficiary: Almost all financial accounts allow or require the name of a beneficiary. Investment account, IRA, 401k, pension, life insurance, bank or credit union account. You can name anyone you like. He may designate one or more beneficiaries. Different accounts can have different beneficiaries. For example, your son receives her 401k and his daughter receives life insurance.

You can also name an organization such as a church or charity. It makes sense to leave taxable accounts like IRAs to nonprofits and tax-exempt benefits like life insurance to individuals.

You can also designate a beneficiary for your car, house, or other property. And you should. It’s free or cheap.

It is important to understand that the beneficiary designation is separate from your will or trust. For example, let’s say Jane Doe is the beneficiary of your life insurance policy. The insurance company will send Jane a check, regardless of what your will and trust say.

Where do wills and trusts fit? These can address non-financial issues, such as parents of children. You can also oversee furniture, heirlooms, coin collections, gun collections, jewelry, art, and more. To get these things done, you’ll need the help of a real estate planning attorney.

If you have minor children, a will is mandatory. Your child needs a guardian of your choosing. If you have underage grandchildren, encourage their parents to do this. Most do not.

A trust is a more sophisticated document that can handle complex situations such as: Hand over multiple properties. business succession; caring for adults with special needs; Or give money to someone with poor financial habits.

My attorney friend and I have a few caveats for you in the estate planning process:

Trust Abuse. Most of us have simple property and don’t need trust.

Name minors as beneficiaries. Minors cannot own property, so a guardian must be appointed to handle the inheritance. Again, complicated.

Name multiple beneficiaries of real estate. Well-intentioned parents often divide their property equally among their children. But if the kids don’t agree, this can be a nightmare. fight. ugly.

Appoint family members as executors or trustees of your estate. This can be a lot of work. People can fight and get angry over money. Executors can be sued. Sometimes children don’t speak anymore. Consider hiring a professional such as a lawyer or trust company. Who gets paid to enact laws and say no!

Once you have created your wealth plan, it is important to review it regularly. Divorce, death, marriage, birth of a child, acquisition or sale of property, or other life events can change your plans.

Travis Ford is a partner and financial planner at Wallstreet Group Advisors in Jefferson. 573-636-3222 or [email protected] Securities and advisory services provided through CreativeOne Securities, LLC member FINRA/SIPC and Investment Advisors. Wallstreet Group Advisors and CreativeOne Securities, LLC are not affiliated companies.



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