What is an estate plan?

Estate planning for six-figure single-income families

Planning for the future is vital, especially when you're the primary breadwinner for your family. An estate plan is the key to securing your financial legacy and ensuring your loved ones are well taken care of. In this blog post, we will explore the three most crucial aspects of an estate plan tailored to six-figure single-income households.

Estate planning is no one’s favorite topic. Even my wife and I struggle to talk about our own estate planning, despite the fact that I help other families with their estate planning day in and day out.

And I get it — it’s gruesome, it’s sad, and it’s hard to think about, but an estate plan is a crucial part of a stable financial foundation, especially for single-income families.

An estate plan is a plan for what happens to your assets after you… ahem, bite the dust, so to speak.

Essentially, the estate plan determines who gets what and outlines the process for distributing your “stuff.” It prevents your “stuff” from going into probate and it may even include guidance for your tax obligations after death.

Wills and Living Trusts:

A well-crafted will is the foundation of any estate plan.

It allows you to specify how your assets will be distributed among your beneficiaries.

For six-figure single-income families, a living trust can be an essential piece of estate planning. Unlike a will, a living trust can help avoid probate, ensuring a smoother and faster transfer of assets to your loved ones.

Additionally, it provides privacy as the details of the trust remain private, unlike a will, which becomes part of the public record.

And who wants their privacy part of the public record?

But that’s not all an estate plan does!

Your estate plan also:

Appointing Guardianship:

As a single-income earner, one of the most critical decisions you'll make in your estate plan is choosing a guardian for your children.

Designating a responsible and caring guardian ensures your children will be cared for according to your wishes in case something happens to you and your spouse.

Discuss this decision thoroughly with your chosen guardian, and ensure their willingness to take on this role before formalizing the appointment in your estate plan.

Minimizing Taxes and Maximizing Benefits:

For six-figure single-income families, estate taxes can significantly impact the assets passed on to beneficiaries.

A well-crafted estate plan can help minimize tax liabilities through various strategies, such as setting up tax-advantaged accounts, gifting, and charitable contributions.

Additionally, consider exploring life insurance options to provide an additional financial safety net for your loved ones.

In conclusion..

An estate plan tailored to six-figure single-income families is a crucial step in securing your financial legacy and providing for your loved ones' future. By focusing on wills and living trusts, appointing guardianship, and minimizing taxes, you can ensure that your assets are distributed according to your wishes, and your family is well-protected in any eventuality.

As always, consult with a qualified estate planning attorney to create a comprehensive plan that meets your family's unique needs and secures your lasting legacy.

An estate plan contains the details for a lot of important tasks. You can think of your estate plan as your final, neatly wrapped parting gift you leave for your loved ones when you pass away.

(And they will be so thankful for it.)