“In this world, nothing is certain except death and taxes.” These famous words attributed to Benjamin Franklin over 200 years ago still ring true today. In this article, you will learn what estate planning is and why it’s important with expert insights shared by a diverse mix of financial advisors experienced in helping their clients in this complicated area of planning.
Estate planning is the process of establishing and maintaining a plan that outlines who will receive your assets after you pass away.It’s a stressful time when a family member dies—having a solid estate plan can go a long way toward easing burdens.
Estate planning is important because it puts in writing how your assets will transfer after your death. Common documents and products include a will, trust, insurance policies, and healthcare-related forms.
According to Marianne Martini Nolte, a Certified Financial Planner and founder of Imagine Financial Services, estate planning is important for everyone, even those who don’t consider themselves to be wealthy.
The next step is to sit down with a fiduciary advisor well-versed in estate planning. The advisor must understand both the laws and regulations as well as your desires. You want to ensure that your wishes are carried out efficiently while minimizing tax liability and following all state and federal rules.
“I love to get involved with the estate planning attorneys I work with,” says Kevin Lao, Founder of Imagine Financial Security. “It puts the clients at ease knowing they have someone who knows their situation in and out and can speak the attorney’s language. Additionally, I know where the assets are and the types of assets, so the client does not have to duplicate efforts in preparing those docs for their attorney.”