By Paul S. McNulty, CFP®
Have you thought about the type of inheritance you’re leaving for your children? Are you leaving them a gift that will ensure their security for years to come, or are you leaving them a mess of assets, liabilities, and confusing records that will take years to sort out?
If you plan to pass your wealth to your children, we think it’s important to make the transition process as easy as possible. Your children may be overwhelmed by grief, and shouldn’t have the added stress of working through a chaotic inheritance process. Incorporating comprehensive legacy and estate planning can make this process much easier.
The Importance Of Estate Planning
Estate planning should be an integral part of your financial and retirement planning. Failing to have an estate plan may not have a significant impact on your own life, but it will undoubtedly affect the lives of your loved ones after you’re gone.
In the absence of an estate plan, your death will be considered intestate, which means there was no valid will in place at the time of your death. The state in which you lived will determine who inherits your property through a process called probate, which can take anywhere from 6-9 months or even several years without proper planning.
In addition to this process lasting a long time, your inheritors may face expensive fees, predatory claimants, and loss of control over what happens to your estate. Probate can cost up to 3-7% of your total estate value. (1) And because this process becomes public information, this means that predatory creditors or estranged relatives may attempt to claim portions of your wealth.
Good estate planning mitigates these risks and provides your family with a secure plan for how your wealth will be transferred. The professionals in your life, such as your estate planning attorney and financial advisor, can become trusted resources for your family to lean on during this difficult transition.
Leave A Lasting Legacy
Additionally, good estate planning incorporates legacy planning, which can be even more beneficial to your inheritors. Legacy planning allows you to incorporate family or financial values into your wealth transfer. If your children aren’t as adept at money management, or have made financial mistakes in the past, your legacy planning can help guide them through what to do with their new wealth.
Your legacy planning can also ensure your children use the inherited wealth to continue providing security for all members of the family, and not to pay for unnecessary luxuries. Legacy planning may help to protect your grandchildren and encourage generational wealth-building for decades to come.
Leave An Inheritance You’re Proud Of
If you haven’t yet thought about the type of inheritance you’re leaving for your children, now is the time to do so. As much as we like to think our own death is decades away, the truth is that none of us know when we’re going to pass away.
Instead of leaving your family with a mess, give them a lasting legacy that will enrich their lives and future generations. Boston Metro Advisor is a comprehensive wealth management firm that will help ensure your family is well taken care of. Contact us for a complimentary consultation by calling (781) 995-0253 or email me directly at [email protected] today!
Paul McNulty is the founder of Boston Metro Advisor with over 20 years of experience helping people navigate the ups and downs of the economy toward the financial future they envision. His education consists of a Bachelor of Science in business administration from the University of Rhode Island and the CERTIFIED FINANCIAL PLANNER™ (CFP®) professional designation.
Paul’s experience and education have made him a multi-faceted professional capable of assisting people with virtually all their financial needs. His services include every facet of retirement planning, from 401(k) rollover services and income planning to wealth management and estate planning. Paul has been active in his community over the years as a youth sports coach. When he’s not spending time with his wife, Cindy, and their two children, who are both recent college graduates, Paul enjoys reading, playing golf, and fishing. Learn more about Paul by connecting with him on LinkedIn.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Boston Metro Advisor and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.