Page 13 - BusinessWest 2023 Senior Planning Guide

Estate & Financial Planning
Estate Planning: An Introduction
Goals, Strategies Can Vary with Each Stage of Life
BY UMASSFIVE FINANCIAL & BINVESTMENT SERVICES
y definition, estate planning is a process designed to help you manage and preserve your assets while you are alive, and to conserve and control
their distribution after your death, according to your goals and objectives. But what estate planning means to you specifically depends on who you are. Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate-planning needs.
For example, you may have a small estate
and may be concerned only that certain people receive particular things. A simple will is probably
all you’ll need. Or you may have a large estate,
and minimizing any potential estate-tax impact is your foremost goal. Here, you’ll need to use more sophisticated techniques in your estate plan, such as a trust.
To help you understand what estate planning means to you, the following sections address some estate-planning needs that are common among
some very broad groups of individuals. Think of these suggestions as simply a point in the right direction, and then seek professional advice to implement the right plan for you.
Over 18
Since incapacity can strike anyone at any time, all adults over 18 should consider having:
• A durable power of attorney: This document lets you name someone to manage your property for you in case you become incapacitated and cannot do so; and
• An advance medical directive: The three main
types of advance medical directives are a living will, a durable power of attorney for healthcare (also known as a healthcare proxy), and a do-not- resuscitate order. Be aware that not all states allow each kind of medical directive, so make sure you execute one that will be effective for you.
Young and Single
If you’re young and single, you may not need much estate planning. But if you have some material possessions, you should at least write a will. If you don’t, the wealth you leave behind if you die will likely go to your parents, and that might not be what you want. A will lets you leave your possessions
to anyone you choose (e.g., your significant other, siblings, other relatives, or favorite charity).
Unmarried Couples
You’ve committed to a life partner but aren’t legally married. For you, a will is essential if you want your property to pass to your partner at your death. Without a will, state law directs that only your closest relatives will inherit your property, and
DAD IS
TRAILING OFF IN THE MIDDLE
OF HIS SENTENCES.
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“Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate-planning needs.”