With rising interest rates and inflation dominating the news, it is essential not to lose sight of your goals and planning. One area that is frequently overlooked is estate planning. Estate Planning may include Wills, Power of Attorney, Advanced Healthcare directives, and trusts. Estate planning often focuses on preserving and transferring your wealth to your family and/or loved ones and may include charitable giving. A basic estate check-up is to review your beneficiaries on an IRA, 401K, annuities, and/or life insurance. Who will take charge and eventually receive your assets if you become incapacitated or pass away? It is not uncommon when reviewing beneficiaries that this section has been left blank or names an ex-spouse or even a person who has already passed away. If a change needs to take place, this can often be corrected by completing a new beneficiary form. Each entity, annuity, life insurance, brokerage account, etc. will most likely have its beneficiary form. However, the information needed to complete these forms is pretty much the same: name of the beneficiary, address, date of birth, and maybe the beneficiary’s social security #.
Another essential document that assists with the transfer of wealth is a Revocable Living Trust. This document allows you to control your assets while you are still alive and, upon your passing, are distributed to your named heirs and/or organizations as stated in your trust. When meeting with your attorney, you will express your wishes, such as who inherits what and who manages your affairs for finances and medical decisions if you become incapacitated.
These are some of the basic considerations when drafting a living trust. In addition, at Corinthian Wealth Management, we often review trusts and then refer you to your attorney for any changes that may be necessary.
“An ounce of prevention is worth a pound of cure.” It is easier to stop something from happening in the first place than to repair the damage after it has happened.
If any major life events have taken place that requires CWM to make changes to your accounts, please let us know, and we will be happy to assist you.