2019 Retirement, Trust, & Estate - Week 2

2019 Retirement, Trust & Estate Planning A SPECIAL SECTION BROUGHT TO YOU BY

WEEK 2

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RETIREMENT, TRUST & ESTATE PLANNING 2019

D

Creating a Will

rafting a last will and testament is an essential component of estate planning.

Despite the importance of having a will, a recent survey from AARP found that two out of five Americans over the age of 45 do not have one.

Putting wishes down on paper helps avoid unnecessary work and sometimes heartache upon the death of a loved

one. Wills allow heirs to act with the decedent’s wishes in mind, and can ensure that assets and possessions will

LEAVE MORE THAN AN INHERITANCE LEAVE YOUR LEGACY A well-crafted gifting strategy can help you give as much as possible to those you love.

Let’s get together to explore your options and look for efficiencies that can help you leverage your assets to leave a better legacy.

ASSETS OWNED

Make a list of known assets and figure out which assets are covered by the will and which will have to be passed on according to other estate laws, such as through joint tenancy on a deed or a living trust. For example, life insurance policies or retirement plan proceeds will be distributed to your named beneficiaries. A will also can cover other assets, such as photographs, clothing, cars, and jewelry.

GUARDIANSHIP

Parents’ wills should include a declaration of who they want to become guardians for their underage children or dependents.

Contact me today.

Marcus A Stacey, RICP ®

PETS

Financial Associate 110 E. Grant St. Spearfish, SD 57783

Some people prefer to use their will to also dictate guardianship for their pets and to leave money or property to help care for those pets. However, pets do not have the legal capacity to own property, so one shouldn’t gift money directly to pets in a will.

605-717-0005

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end up in the right hands.

Estate planning can be tricky, which is why many people turn to attorneys to get the job done right. Attorneys who specialize in estate planning will no doubt discuss the following topics with their clients.

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FUNERAL INSTRUCTIONS

Settling probate will not happen until after the funeral. Therefore, funeral wishes in a will often go unnoticed, states the legal advisement resource Find Law.

EXECUTOR

An executor is a trusted person who will carry out the terms of the will. This person should be willing to serve and be capable of executing the will.

People who die without a valid will become intestate. This means the estate will be settled based on the laws of where that person lived, and a courtappointed administrator will serve in the capacity to transfer property. This administrator will be bound by laws and may make decisions that go against the decedent’s wishes. To avoid this outcome, a will and other estate planning documents are crucial.

You can never start too early...

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building plans for your financial future, that is. Those who plan ahead and start saving early have more time to build assets for retirement, support a family, save for higher education, a new home or other personal goals.

Estate Planning

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1230 North Ave., Suite 8 Spearfish, SD 57783 office 605-722-1575 www.canyonwealth.wradvisors.com Waddell & Reed, Inc. Member FINRA/SIPC

RETIREMENT, TRUST & ESTATE PLANNING 2019

A

Early Retirement

lifetime of working compels many people to look forward to their retirement.

Some people even work to retire early. But what are the advantages of early retirement beyond starting a life of leisure? And are there any detriments to this plan?

The earlier the retirement, the more opportunity to travel before health issues begin to limit mobility. Early retirement also can be a way to volunteer more or even start a new job opportunity — one where workers have greater control over their schedules and careers.

DISADVANTAGES

ADVANTAGES

Many people seek early retirement so that they can live a life free of the constraints of schedules. In retirement, time

becomes, more or less, a retiree’s own.

Leaving a job can be a boon to a person’s health as well. Relieving oneself of the pressures and stresses of professional life can free up the mind and body. Stress can affect mental and

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physical health, taxing the heart and contributing to conditions such as depression or anxiety. According to the Mayo Clinic, stress can cause headache, muscle and chest pain and contribute to trouble sleeping.

One of the disadvantages of early retirement is a loss of income.

Contributions to retirement accounts also ceases at retirement. This can lead to financial setbacks if adequate savings were not allocated for retirement.

According to the resource Wealth How, some people who retire early fear outliving their savings.

While retiring early may be good for health, it also can have negative consequences. An analysis from the National Bureau of Economic Research found that retirement can lead to declines in mental health and mobility as well as feelings of isolation. Retiring early may jump start these health implications.

Another consideration is that health insurance provided by an employer typically ends at retirement. That means having to pay out of pocket until a person ages into government-subsidized healthcare, such as Medicare in the United States, at age 65.

RETIREMENT, TRUST & ESTATE PLANNING 2019

Health Care Directives

W

hen you become too frail or sick to make your own decisions on end-of-life health care, the emotional strain is passed to your family or loved ones. Not only can this cause incredible stress, the avenue they take may not be the route you had in mind. Be open and honest about your final wishes.

threatening. Discuss with your family your opinions about resuscitation so they can determine if CPR should be administered.

• Ventilator: When you are unable to breathe on your own, a ventilator can be used to keep you alive. It usually includes a tube which is connected to your trachea to ensure you’re receiving enough oxygen.

• Comfort care: Deciding how to keep you comfortable while suffering is another factor you should have clear instruction for. Consider instances like limiting medical testing, spiritual and emotional counseling, and pain medication.

TYPES OF FACILITIES

Don’t procrastinate when creating an advance-care plan. Age isn’t the only factor that should be considered. A medical crisis that leaves you too ill to make your own decisions could strike at any time.

EMERGENCY TREATMENT

Without a solid health care directive in place, family members may be tasked with making difficult decisions for

your treatment. Here are a few common instances you must have clear and legal instructions regarding, as suggested by the National Institute on Aging.

• CPR: If your heart begins beating with an abnormal rhythm, it can be life

• • • • •

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Visit different facilities to make the decision on where you will stay if you become disabled to the point you can’t take care of yourself. It’s important to have a plan for different stages of life.

Here are a few to consider.

If you require minimal assistance to live your day-to-day life, an assisted living community is a great option.

You have the freedom to reside in your own space yet receive help in areas like laundry services, prepared meals and personal care.

A nursing home is a better option when you need constant assistance from medical professionals. Here, you can receive 24-hour supervision and help with daily necessities like bathing, grooming and medical management.

In-home care is a great option for someone who wants to stay at home while receiving the same benefits as an assisted-living facility. While it can be expensive to call on medical professionals to come to your home, it is a very comfortable option for those needing help.

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RETIREMENT, TRUST & ESTATE PLANNING 2019

W

Become an Organ Donor

hen you make a commitment to donate healthy organs or tissue at the time of your death, you positively impact the lives of numerous others. When planning your legacy, it’s easy to have your loved ones at the forefront of your mind, but a simple registration could influence the health of a stranger.

© Adobe Stock

According to the United States Department of Health & Human Services, there are two ways to sign up to be an organ donor. From the comfort of your home, visit their website and fill out a simple form. If you would rather complete the process with a representative, the experts at the local Department of Motor Vehicles can help.

STATISTICS

need of healthy organs or tissue. Here are some sobering statistics from the United Network of Organ Sharing, to show you the importance of registering: • 113,864 people are on a waiting list for a lifesaving organ transplant.

• One organ donor can save eight lives.

• A person is added to the national transplant waiting list every ten minutes.

• In 2018, there were 33,432 transplants performed.

There are thousands of Americans in

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HOW YOU CAN HELP

Adults who are legal citizens in the United States are eligible to donate organs at the time of death, and, in some cases, during their lifetime. Of course, certain diseases may inhibit your from becoming a donor; be honest about your health conditions during registration.

Some things that may prevent someone from applying are an HIV infection, cancer or a systemic infection. Keep in mind that organs that aren’t affected from

these diseases may qualify, so visit a representative to discuss your options.

TALK WITH FAMILY

Make sure to discuss your wishes with your family. Conversations regarding death are never easy. You should approach the subject with sensitivity by discussing the benefits that registration offers to others.

Your loved ones may even be curious as to how they register for the national donor list.

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605-717-2889 • 203 West Main Street • Lead, SD 57754 www.JohnsKoselLaw.com

RETIREMENT, TRUST & ESTATE PLANNING 2019

Choose an Estate Attorney

O

rganizing your estate can be overwhelming without the help of an expert.

With the assistance of an estate planning attorney, you can discuss your vision for your assets before death. Don’t risk creating a plan that doesn’t specify your decisions to the exact details. © Adobe Stock

extensive experience in the industry has likely discovered flaws in previous cases and has learned how to correct them.

Ensuring your final wishes are in good hands is great peace of mind for both you and your loved ones.

DO THEY REGULARLY UPDATE PLANS?

To stay on top of your estate, find an attorney who offers an updating and maintenance program. The service may cost more, but they will contact you throughout the year and discuss new techniques, life-changing events which may impact your plans and alterations to laws.

Working with a lawyer who stays in contact with you about your estate plan ensures your documents will be up to date when it’s needed.

When searching for a specialized attorney, it’s important to chat with a few different experts in your area. Make sure you feel comfortable in their office as the discussions of finances and final wishes can be intimate. Once you find several attorneys to interview for the role, here are some questions you should ask before deciding.

IS ESTATE PLANNING THEIR MAIN FOCUS?

Many general attorneys will advertise that estate planning is a part of their practice. They can be a great help when creating legal documents like a will, health care directives and power

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of attorney. However, if your financial situation is more complicated, a dedicated estate planning lawyer will have better knowledge of the everchanging laws and how to protect your legacy.

You should also know how long they have been in practice. Someone who has

HOW DO THEY CHARGE?

Estate planning is necessary to prepare your family before your death. Ask about the fees the attorney charges. During the interview, find out if he charges a fixed rate or hourly. You don’t want to be surprised with unexpected fees.

RETIREMENT, TRUST & ESTATE PLANNING 2019

Get the Facts on Life Insurance

F

ew people want to face their own mortality when they are in the prime of their lives. However, thinking ahead and making advanced plans can save family members considerable heartache.

Life insurance policies can help men and women make things easier for their spouses, children or siblings. Life insurance provides financial security in the event of a person’s death. Such insurance is a key element of estate planning and something all adults must consider.

It’s smart to purchase life insurance at a relatively young age because the cost can be lower. Some people put off the process because it can be overwhelming.

But Forbes magazine advises that once a person does a little research and learns the terminology associated with life insurance, choosing a policy is not so difficult.

AMOUNT OF INSURANCE

Make a list of expected expenses after you pass away. These may include any residual mortgage payments, school tuitions, automotive payments, or funeral expenses. In addition, approximate how much your family will need to live comfortably in your absence. Online calculators can help determine life insurance coverage needs. The New York Life Insurance Company says a quick way to figure out how much coverage you may need is to take your annual salary and multiply it by eight.

TYPE OF POLICY

Life insurance policies come in two broad categories: term and whole life. Term life insurance may be less expensive upfront, as it only provides coverage for a set number of years. It will only pay out if the policy holder dies during this “term.” Whole life insurance, also called “cash value,” usually costs more, but accumulates a cash value that can be borrowed against, and it pays out whenever a person passes away.

REPUTABLE COMPANIES

KNOW THE WAITING PERIOD

Many policies establish a period of time on policies wherein there is very little cash-out value and the company will not pay out the full death benefit.

This may be a year or two after opening

the policy. Discuss this information with the insurance agent.

Life insurance can be a smart financial choice, helping men and women rest easy that their families will want for nothing in the wake of their deaths.

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