Some of us are uncomfortable thinking about the end of our lives, which is understandable. Regardless, estate planning is an important process to undertake.
Here’s a brief explanation of what estate planning is and the vital role it plays in overall financial health. Included is a free beneficiary planning tool that can make your estate preparations a little easier.
What Is Estate Planning?
Estate planning is the process of managing your financial and legal affairs to reflect your wishes in the event of your death or incapacitation. It’s a comprehensive strategy meant to guarantee that your assets are distributed to your family or other beneficiaries according to your preferences.
Key components of estate planning include:
- Wills
- Trusts
- Powers of attorney
- Healthcare directives
- Letters of intent
- Shielding assets from legal or credit authorities
The most important parts of estate planning are designating beneficiaries and reducing legal exposure to your estate.
Why Estate Planning Is Important
One of the main reasons estate planning is so crucial is that it safeguards your family and beneficiaries, confirming that they have the means to live after you’ve passed on. Estate planning can also help to avoid the long and costly probate process by eliminating confusion about how you intend to have your assets handled after you expire.
Estate planning can also limit tax implications on your assets to reduce the burden on your beneficiaries. It also gives you a sense of control and reassurance that your affairs shall remain in order in the future.
Common Mistakes in Estate Planning
Perhaps the most common error people make in planning their estates is putting the process off. The longer you procrastinate, the more complicated estate planning can get.
It’s also important to keep your estate plans updated to address shifting circumstances that might affect your beneficiaries and asset distribution. Life is full of changes, and keeping your plans current can make your affairs more manageable.
Many people overlook digital assets—online financial accounts, cryptocurrency, social media, subscriptions, intellectual property, etc.—in the process of estate planning. Doing so may result in a lower valuation of your assets than what you actually have.
Another mistake estate planners make is not getting professional advice in the areas they need the most help with. Qualified advisors can go a long way toward making your intentions clear and executable.
The Role of Beneficiary Designations
Beneficiary designations are instructions about who receives your assets after you pass. Such designations are required in certain types of accounts, including IRAs, life insurance policies, annuities, bank accounts, investments, and health savings accounts.
Beneficiary designations take precedence over wills and trusts. However, they also work as complements to such documentation, allowing for a more complete and clear distribution plan.
Free Beneficiary Planner
The Paragon Wealth team put together a free beneficiary planner that can assist your family and beneficiaries understand where your assets are to go after you pass away.
This helpful tool provides an outline for making estate plans across all areas of your life, including your current status, bank accounts, investments, credit, insurance, debts (what you owe as well as what others owe you), real estate, and more.
Some benefits of using our beneficiary planner include:
- Getting organized and keeping everything in one place
- Providing clear communications to beneficiaries
- Saving time in preparation
- Reducing the stress of estate planning on you and your loved ones
We recommend taking advantage of our beneficiary planner as a handy stepping stone to a clear outline of your desired distribution of assets.
How to Use Our Free Beneficiary Planner
The following steps can help you best leverage our no-cost planning tool:
- First, access the planner!
- Input information about your accounts, investments, insurance, vehicle registration, digital items, and other assets.
- Then return periodically to keep all the information current as your life and plans change.
This indispensable resource can help guide your estate-planning intentions and give your beneficiaries a clear road map for managing asset distribution.
Contact Paragon Wealth for More Help
At Paragon Wealth Management, our top priority is providing experienced advice to help you feel confident you are making informed decisions that get you closer to your goals—now and in the future.
By assisting with proactive planning and offering resources like our beneficiary planner, we can help you make better decisions for your estate. To learn more, contact us today. To schedule a meeting, call (215) 348-3176 or email charlie@paragon-wealth.com.
This planner is only to provide help with organizing your wishes. It is in no way a legal document, and does not confirm or modify any existing beneficiary designations on any accounts or products. See your financial advisor for required documentation to designate beneficiaries on your accounts/products.
About Charles
Charles McNamara, III (Charlie), is a Founding Partner, Financial Advisor, and President at Paragon Wealth Management, a financial services firm based in Doylestown, Pennsylvania, dedicated to professionally supporting, educating, and providing informed direction to each and every client. Charlie’s passion for working with clients one-on-one to find specialized solutions to pursue their financial goals drives the firm’s client-focused mission and continued success. He values the confidence clients have in him to always keep their best interests in mind.
A veteran of the financial services industry since 2000, Charlie brings an extraordinary level of knowledge and experience to the financial field. After obtaining a business finance degree from Delaware Valley University, he began his career as a financial advisor with Prudential Financial in 2001, and was promoted to management in only three years due to his hard work and dedication. With an entrepreneurial spirit and a passion for helping people solve problems, he launched his own practice in 2007.
When he’s not at work, Charlie spends time with his wife, Lisa (co-owner of local salon Moxie), daughter, Carissa, and their two dogs and cat. He enjoys weightlifting, running, golfing, fishing, and giving back to the community through his church, Our Lady of Mt. Carmel, and local organizations, such as the Travis Manion Foundation. To learn more about Charles, connect with him on LinkedIn.