Estate Planning

In our business, we spend intimate moments with our clients planning for the future and making key decisions. Estate planning is perhaps one of the most intimate topics, because most people tend to shy away from this subject, naturally.

But the fact is, estate planning can actually cushion the blow of your passing for your family members and help them deal with the inevitable financial complexities that arise when the time comes. More than anything else, we at Paradigm Financial Partners view smart estate planning an important part of creating a total wealth management strategy. Why? Estate planning gives you complete control over your assets even after your lifetime, enabling you to distribute the wealth among your heirs as you see fit. Now let's delve a bit further.

A Will or a Trust?

When we talk with our clients about estate planning, one of the first items we address is setting up a trust. Trusts are created when you have significant wealth, physical holdings and intangible/ tangible assets to distribute. This is separate from a will which is a written document that clearly outlines how your property should be distributed after your lifetime. You can change it any time during your lifetime. (Also if you have minor children, you can appoint a guardian through your will to ensure that your wealth is used for their benefit).

A trust is a legal entity that enables property management during and after your lifetime. You can appoint a trustee who will take over the trust after your lifetime or in the event you are incapacitated in any way. One of the biggest advantages of setting up a trust is that you avoid probate on your holdings. However, the cost of setting up a trust can be high and you will also pay recurring administrative fees towards it. Keep in mind that a trust does not preclude the need for a will.

Something else to consider when it comes to deciding how to manage and distribute your wealth is having a power of attorney. This empowers a trustworthy person to make financial decisions on your behalf, should there be other circumstances that leave you mentally or physically incapacitated. Again, not the easiest topic to address, but definitely something we advise our clients to consider as part of their financial strategy.

Estate Planning is not Just for the Uber Wealthy

A common misconception is that only those with substantial wealth need to do their estate planning well in advance. However, each and every one of us needs to pay adequate attention to planning how our wealth is to be distributed after our lifetime. This can prevent confusion, legal issues, unnecessary conflict among family members at a time when they are already facing immense stress and mental anguish. Planning ahead also gives your family easy access to your finances so that they can continue to pay for critical expenses like education or medical care.

It is quite natural to feel overwhelmed by the thought of sorting out your entire lifetime’s worth of savings and wealth, and allocating it in the right ways. I'd be happy to help! Please feel free to ask and I would be happy to share additional advice on estate planning. Remember, as I always say, securing your financial future - and ensuring your wealth management plan is working for you and your loved ones - is invaluable.