By: James Filippi
There are obvious ways to say I love you, but what if you show your love in a different way this season—with an estate plan?
Most people choose to buy chocolates and flowers and go out on a nice date to show their Valentine they care. While that is a wonderful expression of your affection, making sure your loved ones will be well cared for when you are not around is the greatest way to show your true love. Creating an estate plan is a selfless act of love that benefits you when you are alive as well as those you leave behind.
Ways to show your love
- An “I love you” will is a wonderful place to start. This is a straight-forward will that leaves your assets to your spouse and children. While it is not the best option for everyone because it does not include a trust or tax planning, it is better than no will at all.
- Utilizing a trust is a smart way to ensure that your loved ones are financially secure. It can be used to hold money in a trust for someone and allow a trustee to gradually release the funds to them. Additionally, it can be used to potentially shield them from creditors if they divorce or marry in the future.
- Consider a gifting trust. You can gift your assets to your loved ones to use now while saving on estate taxes in the future. You can protect the assets while allowing your loved ones to access them.
- Make sure you have a power of attorney that is current. In the event that you are incapacitated, a power of attorney allows your loved ones to access your funds, pay bills, and handle your finances.
- Don’t forget your beneficiaries in your retirement accounts. Beneficiary designations are often overlooked. Check your accounts and make sure they align with the rest of your estate plan.
- Handle your estate taxes. You can plan to minimize or eliminate state and federal estate taxes with a trust and other advanced planning techniques, like lifetime gifting and specialized irrevocable trusts. Your attorney can suggest the best options for your unique estate plan.
- Keep your healthcare proxy updated. A health scare is one of the most stressful times for a family. Don’t wait for it to happen. Designate a representative to handle decisions on your behalf in the event that you are unable to do so.
- Check your life insurance beneficiary. Make sure you are aware of your life insurance policy and do not rely on verbal communication. Obtain correspondence in writing from the insurance provider and keep it with your other documents.
- Properly invest your assets. Stay in contact with your financial advisor to ensure you are on track to reach your financial goals for both yourself and your legacy planning.
Estate Planning is truly about love
We plan for the future while we are here and for when we are not. We spend time thinking about who and what we love. Who is important to you? Who will miss you the most? Who do you take care of? Who takes care of you? Who will take care of your children or grandchildren? What about your pets? What will happen to the family farm or business? Who will get grandmas jewelry? How will I be remembered?
Most people fear or avoid discussions about death or disability; let’s instead talk about the people you love and how you will continue to care for them. This month, we celebrate Valentine’s Day and love. It’s the perfect time to take a few moments to think about the people and things around us that enrich our lives.
There are many ways to say ‘I love you,’ and thoughtful estate planning is definitely one of them.
Let’s work on your estate plan this Valentine’s Day. Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, and trust litigation in the greater Sacramento area and Placer County, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin.
