A question financial advisors like myself frequently hear: What is the purpose of estate management? It’s an important question because it involves both short and long-term financial planning. Young professionals starting new jobs as well as those at the end of successful careers benefit from an effective estate strategy. Here’s why:
What Is Estate Management?
Effective estate management enables you to manage your affairs during your lifetime and control the distribution of your wealth after death. An effective estate strategy can spell out your healthcare wishes and ensure that they're carried out – even if you are unable to communicate. It can also designate someone to manage your financial affairs should you be unable to do so. It can protect your spouse, children or other heirs, and ensure how and when your assets are distributed, and manage the amount of estate taxes.
If done well, estate management can make a huge difference. There are two objectives for effective estate management:
- First, managing your financial and personal affairs during your lifetime; and
- Second, distributing your wealth after your death.
These issues are too important to trust to luck – you need to determine the outcome by planning in advance. As part of your estate plan, you will need some critical documents, including a will, various healthcare and financial documents, and life insurance policies. A will is the most basic estate planning document because it tells the world exactly where you want your assets distributed when you die. However, it is not the only document you need to have in place.
How to get started?
The earlier you begin your plan for wealth building and estate management, the more effective it will be. Your management plan for your estate should address two factors: The value of your estate(current or projected) and your estate management objectives. Your financial advisor will work with you to develop the strategy that is most effective for your situation and monitor the progress as you build your assets.
Even if you aren't quite where you want to be ... yet ... we all know that as your wealth grows, managing it becomes a more complex and time-consuming task. An independent financial advisor will help to make wise and informed decisions concerning your future financial condition. Contact our team.
Material discussed is meant for general illustration and/or informational purposes only, and it is not to be construed as investment, tax, or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.