Creating a comprehensive financial plan is essential for everyone! If you do not have a financial plan created, now is the time to do so as it will include cash flow planning, insurance management, and investment management. Individuals will be able to understand their borrowing structure, which includes home mortgages and credit card management. Creating a solid financial goal plan is vital to making sure individuals will have a grasp on their finances and reduce the risk of carrying a large debt burden.
Understanding Financial Planning
Financial planning is designed to look at income taxes and the overall financial goals of the individual. In many cases, clients find refinancing their homes is one of the best ways to save money and reduce debt. In addition, financial planning will focus on restructuring business assets, credit card planning, personal retirement planning, insurance planning, and business succession planning.
Covering the Basics
One thing should be clear by now: we do our families and ourselves a great disservice when we fail to plan for every contingency. That’s why a crucial first step in this entire process should be a consultation with an estate planning attorney. He or she will help you evaluate your family’s needs and financial situation, and will draft a comprehensive estate plan that may include such tools as a Durable Power of Attorney for Health Care and Revocable Living Trust.
In addition, your estate planning attorney will show you how to reduce or eliminate estate taxes and how to ensure that after your death your estate will go to whom you want, when you want and how you want without the expense, delay or publicity of probate. Of course, confronting your own mortality is a process that makes most people uneasy; but
that’s nothing compared to the anguish that often befalls the families of those who make no plans at all. So, even though the process can often be emotionally challenging in the beginning, the payoff in peace of mind for both you and your family will make it worth your while.
In general, you should have all estate planning documents reviewed. In particular, you’ll have to review your fiduciary designations with the following questions in mind.
1. Who is designated as the trustee of a trust?
2. Who is the Executor/Personal Representative of a will?
3. Who is the Agent under a Property Power of Attorney, Health Care Power of Attorney, or Health Care Proxy?
Many states have statutes that preclude an ex-spouse from inheriting under a will created during the marriage. Some of the statutes also apply to trusts and beneficiary designations on life insurance or retirement plans. However, the laws vary tremendously and resolution of the matter can be further complicated where a divorce occurs in one state, but the estate plan or beneficiary designation is governed by the laws of another state or the federal government.