Estate Planning

The President, on December 29, 2022, signed the Consolidated Appropriations Act, 2023, which is the “omnibus spending bill” Congress needed to pass to avoid a government shutdown. That legislation also included the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act, a.k.a.

You need an estate plan, regardless of whether or not you are among the ultra-rich. As recent news has shown, even those who have won the lottery or have substantial wealth can fall victim to poor estate planning.

In the unfortunate event that you should pass away without an estate plan (or at the very least, a will) in place, several potentially distressing things can happen. Not only can it cause a lot of unnecessary stress during the grieving process, but it also requires a major time and financial commitment from your loved ones as well.

Expanding your family? Whether you’re in the planning stages or your bundle of joy has already arrived, raising a child is one of life’s greatest joys — and biggest expenses — and we're not just talking about the costs of college.

As financial advisors, we help people attain financial independence. Usually, our personalized planning conversations are enough to help them establish a healthy, happy relationship with their money, but sometimes, we uncover bigger pain points we need to move past before we can move on.

In our last piece, we covered fund management costs. Next, let’s take a step back from the mutual funds, ETFs, or other holdings you decide to invest in. Where do these holdings live — and what does it cost to buy, sell, and hold them?

An Account of Your Accounts

When it comes to transactions between family members, the tax laws are frequently overlooked, if not outright trampled upon. The following are some commonly encountered situations and the tax ramifications associated with each.

Renting to a Relative

Whether due to disability, dementia, or simply enjoying an exotic vacation, there are many ways you can end up unavailable to make critical financial or health care choices for yourself or your loved ones. If you’ve not documented your desires in advance, it can add extra stress for everyone, plus the outcomes may not be what anyone had in mind!

In our last piece, we emphasized the importance of estate planning as the greatest gift you can bequeath to your loved ones, to reduce their painful stress load during an already stressful time. If you’ve been putting off your estate planning, taking the initial steps can be daunting — but liberating. So, let’s get started today, one hurdle at a time.

Fact: When you pass, you will leave behind an estate, and somebody will need to settle it. Your estate may be worth a little or a lot, but there’s no escaping death and taxes.

So why do so many families put off their essential estate planning until push comes to shove?

Estate Planning Is an Act of Love