A 4-Point Plan for Your Future Success
Consider this scenario: Anne is just 30 years old when her mother passes away. In the months following the funeral, Anne discovers that her mother—a widow—never drafted a plan for her estate. In the absence of a plan, state law determines how her mother’s assets will be distributed.
According to a study by the National Center for Women and Retirement, 80 to 90 percent of women will make financial decisions on their own at some point in their lives. Whether you are single, divorced or widowed, having an effective estate plan is part of being independent. Estate planning not only ensures financial stability during your lifetime, but also allows you to choose how your assets will be distributed after your lifetime.
Here are four key elements of a successful estate plan that anyone can follow.
1. A Will
2. Life Insurance
- Ensures that your assets will be distributed the way you intend.
- Allows your dependents to receive the care and financial security they need.
- Gives charitable organizations like our organization your support into the future.
3. A Living Trust
- As a general rule, should be equal to five times your annual salary.
- Covers your family’s financial obligations, goals and everyday expenses.
- Should be enough to pay off mortgages, other liabilities and final taxes.
4. Charitable Gifts
- Avoids probate for your estate.
- Appoints a trustee of your choosing to handle your affairs.
- Provides care for another individual, a disabled spouse or child, and appoints a guardian to care for the individual and take care of his or her financial needs.
- Provide ways to reduce taxes and can be given now or later.
- Support a future for our organization and those we serve.
- Connect your legacy with the organizations and causes you care about the most.
The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
Last Updated On
April 29, 2019