What is an estate plan?
"It's a plan for what happens to your assets after you.. ahem, bite the dust, so to speak"
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.
But that’s not all an estate plan does!
Your estate plan also:
- Specifies who will care for your children in the event that both you and your spouse pass away.
- It outlines your healthcare directives and how to manage your affairs should you be unable to make those decisions on your own.
- It may articulate your wishes for what happens to your body after death.
- It’s even a way to pass on your most cherished values to your surviving family members—in other words, your legacy
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.