Why a Will Should Never Be Your Estate’s “Plan A”

If you’ve done your research on estate planning, you’ll know that many articles talk about the importance of a will. 

In fact, many have come to consider a will as the foundation or cornerstone of their estate plan. But is a will really as crucial as others make it out to be? 

You may be surprised to learn that a will may not be the most effective route to get your money where it needs to go. A will can possibly create some costly and time-consuming detours. 

Here are a few important considerations regarding wills and their role in your estate plan.

A Will Won’t Cover Everything.

Think of your family’s mudroom. When you walk through the door, it’s the catch-all spot to put shoes, coats, scarves, cleaning supplies, dog food—you name it. It’s your home’s go-to storage for things that don’t fit in anywhere else in the house. Is it exceptionally organized? No. Does it serve as the best home for all these items? Again, typically not.Similarly, a will is not a catch-all for your financial life. It serves some specific purposes, but it is not designed to carry the full weight of your estate plan.

What Do Wills Cover?

Wills are a vehicle for documenting your intent, which the courts, via probate, will ensure is heard. It will dictate who receives what assets and how much after your passing. Assets could include real estate, cash, collectibles, treasured possessions, and more.

If you’re the caretaker to a minor or dependent, you can also name a new legal guardian in your will.

What Do Wills Not Cover?

There are specific policies and accounts that will already have designated beneficiaries named, such as life insurance policies and retirement savings accounts. If you own property jointly or property is held in a trust, these should not be included in your will either.

Additional considerations such as funeral arrangements should be documented elsewhere, as the estate will not be settled when these plans need to be made.

Wills & Probate

Probate refers to the legal process your estate goes through after your passing. During probate, the court system will work through distributing assets to your heirs based on your final wishes.

This process can be costly and time-consuming—not to mention a public affair.

Having a will does not mean your estate gets to skip probate. If you have a will, it legally must go through the court system. If bypassing probate is a priority in your estate planning, there are other tools to consider instead, such as a trust.

Are Trusts the Only Alternative? 

A trust can offer certain benefits that a will can not, but it’s not the only way to accomplish your estate planning goals. It is, however, a surprisingly suitable option for families of most sizes and net worth. Despite common misconceptions, you don’t have to be a multi-millionaire to benefit from a trust. 

Instead, your trust should work to help dictate your intent, provide efficiency during the transition process and minimize time and cost. A trust can be constructive when passing on real estate or after-tax brokerage accounts.

Is Establishing a Living Trust Expensive?

There are several ways to go about establishing a living trust in Michigan. You have the option to take a do-it-yourself approach by creating one online. This may range from $100 to $300, depending on complexity. While this is an initially cost-effective option, making your own trust may leave your estate vulnerable to mistakes or missed opportunities.

Hiring an attorney to help establish a trust will be more costly, but you gain the guidance of an experienced professional to address all complexities or concerns. Attorneys will have different rates and fee structures; some may be hourly while others may offer a flat rate for certain services.

How much should your estate plan cost?

It depends on the level of complexity and your situation, but many range from $2,000-$4,000. 

Creating Your Estate Planning Toolbox

A meaningful way to keep assets out of probate and minimize costs is to leverage the full power of your estate planning toolbox. Establishing beneficiary designations on applicable accounts now can make the transfer process smoother later down the line. In addition, consider joint ownership for things like property, cars, and bank accounts. This will allow the co-owner to access assets and funds immediately after your passing. Both of these tools can be used to pass assets directly to heirs without added time and hassle.

Establishing Your Estate Plan

While a will may be a good start, it shouldn’t serve as the catch-all tool in your estate planning toolbox. Legacy Wealth Advisors works with well-established individuals and families preparing for retirement and working through the estate planning process.

As you consider the best way to prepare your estate for your passing, feel free to reach out to our team anytime.

Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. 

Legacy Wealth Advisors does not offer tax planning or legal services but may provide references to tax services or legal providers. Legacy Wealth Advisors may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters.

The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication or future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed.

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The 6 Tools of Estate Planning

The 6 Tools of Estate Planning

Too often, wills and trusts are seen as the magic wand of estate planning. 

But no one tool can turn your pumpkin into a carriage (at least not for long). Instead, several tools work together to help make your estate plan the bell of the ball. Let’s take a look.

Your Estate Planning Toolbox

Building a proper estate plan can’t be done without the right tools. We’ve divided your toolbag into three sections: the foundation, the principal vehicles, and the designations. Review the information below carefully as you start to piece together your estate plan with the proper tools for the job.

Tools #1 & #2: Power of Attorney and Patient Advocate

Starting with the foundation of any estate plan, you’ll need to determine your Power of Attorney (PoA) and Patient Advocate (PA). Both designations plan an integral part in protecting your well-being, as they will allow someone to make decisions on your behalf should you become incapacitated.

The person (or people) you choose to be your PoA should have your best interest at heart, and they must be capable of making important decisions regarding your finances, assets, and medical care.

Power of Attorney

A Power of Attorney is a legally binding document that gives another person the power to act on your behalf. This person, known as your agent, can be your decision-maker when you’re incapable of making decisions yourself.

A PoA must be signed and executed while you are still of sound mind and body, making it an important foundational component of your estate plan. You don’t want to put off creating a PoA until something happens to you, as it may not be legally binding.

It’s important to note that your PoA will be considered null and void upon your passing. For estate planning purposes, this document is typically designed to assist in the event you are incapacitated.

Patient Advocate

A Patient Advocate is someone who will dictate medical decisions on your behalf. This person can serve as a singular point-of-contact while helping to manage your medical treatment. Essentially, this appointment gives you a voice by empowering someone you trust to speak for you.

Oftentimes, this person may be a family member or trusted friend. You may have the option to hire a professional Patient Advocate as well. Weigh your options carefully, as this person will play an essential role in the event of a medical emergency.

Tools #3 & #4: Will and Trust

A will and a trust are two vehicles that can help you effectively execute your final wishes. You may find that one benefits your situation better than the other, or a mix of both are needed to fully address your estate planning intents.

Will

A will issues an administrative process for the courts via probate to honor your intent. The more preparation you can do ahead of time, the easier it is to avoid a costly and lengthy probate process for your heirs.

Simply put, probate is the legal process necessary to pass the assets of a deceased person on to others. Depending on your state, it may be possible to avoid probate altogether—although this tends to be the exception, not the rule.

Trusts

A trust allows a third-party or person, known as a trustee, to access and direct assets after your passing.

Similar to wills, a trust can initiate the administrative process. A trust, however, can do so without putting your estate through probate. Because of this, beneficiaries may be able to access their inheritance sooner.

Trusts aren’t a blanket solution, but combining them with other tools can help maximize efficiency while reducing future tax obligations on your estate and heirs.

Tools #5 & #6: Joint Ownership and Beneficiaries

Two designations that can help maximize your legacy planning strategy are joint ownership and beneficiaries.

Both of these designations actually have the power to supersede what’s in your will, making them effective tools in your estate planning toolbox.

Joint Ownership

If someone is a joint owner on an account, they can access the account and its funds immediately after your passing. This designation would bypass probate, as the account is already in the inheritor or executor’s name.

Joint ownership shouldn’t be overlooked, as it can help your executor cover immediate costs like funeral expenses and legal fees.

Beneficiaries

Unlike a joint owner, a beneficiary cannot access or control funds in the owner’s account until after the owner’s passing. You can have as many beneficiaries as you’d like, and you can outline who gets how much during the estate planning process.

You’ll want to work with your financial advisor when selecting beneficiaries for specific accounts. There may be significant tax benefits to choosing your spouse as a beneficiary on things like your retirement accounts and life insurance policies.

A non-spousal beneficiary of an IRA, for example, may face certain tax obligations that a spouse wouldn’t.

Bonus Tool #7: Legacy Wealth Advisors

A trusted financial professional may be the most important of all the tools in your estate planning toolbox. With proper planning in place, you may be able to protect your assets and your loved ones from excess taxes, costly legal fees, and emotional turmoil.

Legacy Wealth Advisors helps individuals and families navigate the legacy planning process from start to finish. If you’re looking to build out your custom estate planning toolkit, get in touch with us today.

Disclaimer: Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. 

The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of  Michigan or where otherwise legally permitted. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed.

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The 3 Core Estate Planning Concepts To Take Your Strategy To The Next Level

Your estate plan should encapsulate the legacy you wish to pass along for generations. But successfully coordinating your assets, wishes, and family isn’t only a science; it’s also an art. 

At Legacy Wealth Advisors, we work closely with the estate planning attorneys at Stewart and Bruss, P.C. to help our clients build a comprehensive plan for managing and passing on their wealth.

Today, we’re going to explore the three core concepts that are used to construct a firm foundation for each client’s estate plan: honor intent, maximize efficiency, minimize cost and taxes. 

What do these elements mean, and how can you prioritize them to build an estate plan that best represents your legacy goals?

Let’s dive in. 

Honor Your Intent

The first element is perhaps the most straightforward. It seeks to help you determine what you want your plan to accomplish—uncovering your “why’. 

Ask yourself,

  • Do you want to divide your estate evenly among your heirs? 
  • Are there multiple marriages and blended families to consider?
  • Do you have family members whom you want to offer more help and financial support than others?
  • Are charitable contributions an important aspect of your legacy?
  • Who do you trust to help you carry out these wishes (executor, trustee, power of attorney, healthcare directive, etc.)?

Once you start looking, there are hundreds of questions that can help you understand exactly what you want your estate to look like. Perhaps you are comfortable leaving everything to your kids to divide evenly, or maybe you’re interested in donating some of your estate to a charity or cause that’s been instrumental in your life. 

Regardless of your route, your intent can give us a springboard to build the most efficient and effective strategy to support it.

There are several estate planning tools at your disposal like trusts, beneficiaries, designations, and more. We can best help you arrange and organize these tools when you’re clear on your “why.”

Maximize Your Estate’s Efficiency

Once you have a better idea of what you want your estate to look like, the next step is to gather the tools you need to make it happen as smoothly as possible. 

One of the most significant ways to maximize your estate’s efficiency is to avoid probate. Probate is a public proceeding that validates and distributes your assets. Avoiding probate is often desirable because it can be costly, time-consuming, and public.

Probate initiates an administrative process—it helps ensure that your assets get from point A to point B. But the process often never moves in a straight line. Since probate is court-mandated, there are several procedural formalities and red-tape to get through before your assets get where they need to go.

Instead of smoothly transferring hands, probate initiates another costly step.  

Maximizing efficiency in your estate involves using suitable vehicles to help you bypass this step, like trusts and beneficiary designations.

Take a bank account as an example. Say you wanted the funds in your account to go to your executor (your child) when you pass to cover immediate cash needs like funeral expenses. 

If you made your child a joint owner on the account, when you pass away, they automatically can access the account. On the other hand, if you didn’t have that designation, the account would go through probate before your child could access the funds.

Knowing your intent is a critical first step to building a seamless process.

Minimize Your Cost and Taxes

The final core estate planning consideration is all about minimizing costs and taxes. 

Estate planning can be expensive, but it doesn’t have to be out of reach. When you know what you want to achieve and the options available to you, your team of estate planning professionals can help you secure the most cost-effective options for your needs. 

Your team will help you answer the following questions:

  • What vehicles do you need to help you achieve your goals? Are there other creative strategies you can employ?
  • What are tax-efficient ways to pass down wealth? (giving more while alive, establishing the right trust, remaining cognizant of how different assets are taxed).
  • What assets work best in certain vehicles? 
  • How can you adequately fund a trust? 
  • Does it make sense to make your executor a joint owner on some accounts?
  • Are you leveraging your beneficiary designations? Naming the most qualified beneficiary can be a powerful and often underestimated estate planning tool.

Knowing what you want to accomplish helps us understand the right questions to ask and develop a plan that works for you. 

How Can You Prioritize Among The Three?

Everything in life involves balance, and your estate plan is no different. 

The way these three core concepts relate to each other depends on their importance. Start by understanding your goals and values. From there, you’ll be able to establish what’s most important to you.

Will your intent always be your first priority? If so, other areas like costs may be a bit higher, especially if you have complex needs. 

Each element can counterbalance the other. Sometimes intent may make the other two areas less efficient and vice versa. If keeping costs low is your highest priority, you may need to be willing to make compromises in other areas.  

But you don’t have to go through the process alone; the right estate planning attorney will help you work through each of those scenarios, and in conjunction with a financial planner like Legacy Wealth Advisors, you can create a well-coordinated plan to execute your legacy. 

Are you ready to take your legacy planning to the next level? Get started with us today.

Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Legacy Wealth Advisors does not offer tax planning or legal services but may provide references to tax services or legal providers. Legacy Wealth Advisors may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters.

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How To Pass Down Wealth In An Efficient And Tax-Friendly Way

How To Pass Down Wealth In An Efficient And Tax-Friendly Way

Your legacy is the centerpiece of your estate plan. 

Creating a plan that encompasses your vision, hopes, and dreams for the future can be both exciting and overwhelming. On top of leaving memories, habits, and values that hopefully live on for generations, you also have to think about the best ways to pass your assets to heirs. 

In general, your estate plan comes down to three goals:

  • Defining your intent
  • Maximizing efficiency
  • Minimizing time, costs, and taxes

The combination of the three depends on your unique situation. For many, it’s critical to be tax-conscious when passing down wealth.  

Estate or death taxes can present some hurdles for your heirs. You want more of your money to pass to heirs or charitable organizations that bolster your legacy instead of lining Uncle Sam’s pockets.

How can you bring tax efficiency to your estate plan?

Here are a couple of strategies to consider.

Understand How Your Assets Are Taxed

First things first: know the tax treatment for your assets. 

Perhaps the most significant change to remember is the elimination of the stretch provision for most non-spouse beneficiaries on inherited IRAs. Before the SECURE Act, beneficiaries of inherited IRAs could “stretch” distributions throughout their life. But now, the time frame is much tighter; all funds must be withdrawn within ten years.

With many beneficiaries in peak-earning years, this change could cause a significant tax burden. It may be wise to double-check your IRA beneficiaries. 

Keep an Eye on Federal Estate Tax Exemption 

Even though the federal estate tax exemption is sky-high in 2024, $13.61 million (or $27.22 million married filing jointly), that higher limit brought about by the Tax Cuts and Jobs Act (TCJA) sunsets in 2025, so the exemption may decrease significantly.

The White House has already discussed the possibility of lowering the exemption. Several politicians have previously proposed slashing it to as low as $3 million, but the current administration has proposed $5 million. 

Remember, these are simply proposals; Congress hasn’t passed a new law. If the TJCA provisions end before Congress approves new legislation, the estate tax will be suspended. 

With the exemptions as high as they are, several people think they won’t have to worry about reaching them. But many underestimate the value of their estates. It’s easy to account for your retirement, brokerage, and savings accounts, but what about other assets?

  • Do you have out-of-state assets like property?
  • Do you own rental properties?
  • What’s the value of your home?
  • How much life insurance do you have?
  • Do you have advanced retirement benefits like equity or deferred compensation plans?

These assets are valuable and can quickly add up—making $3 or even $5 million not out of the question to reach. 

What happens if your estate surpasses the limit? The IRS taxes any investments/assets over the allowed value at a 40% tax rate. It’s essential to understand your entire financial picture to plan for estate taxes properly. 

Give More Money Throughout Your Life

While leaving an inheritance can be a meaningful extension of your legacy, it can also be fruitful to give away more money, assets, and belongings while you’re alive to see your loved ones enjoy them.

Think about it like this. If you give your daughter money to help supplement a down payment on her family’s dream home, you can enjoy family dinners and activities, building so many precious memories. 

Giving money while alive also actively lowers the value of your estate, which can be helpful when it comes time to add everything up. You could give money directly or fund a 529, custodial account, or other investment accounts. In 2024, the federal annual gift tax limit is $18,000 or $36,000 for married couples filing jointly. 

You will have to pay taxes if you exceed the limit. Your tax rate depends on how much you give above the limit; it ranges anywhere from 18-40%. If you want to give more, there are a few ways to circumvent the gift tax rule. 

  • You can make unlimited payments directly to a medical or educational institution. 
  • Fund a bulk contribution to a 529. You can put in 5 years’ worth of contributions at a time, and since the annual gift limit is $18,000, that adds up to $90,000. 

Establish The Right Trust

A trust can be an integral part of many people’s estate plans because they are efficient and often tax-friendly ways to pass down wealth. Since trusts avoid probate, they can help expedite the wealth transfer process and save your family and estate on administrative, legal, and court fees. 

Trusts also invoke an administrative process, which may bring more structure to your assets. For example, you may want to set up a trust for your children that delays full access to the assets up to a certain age and only allows distributions for education costs. Using a trust can help you accomplish your intent: funding your children’s education while also bringing built-in organization to the process.

There are two broad categories of trusts: revocable and irrevocable, and the primary difference comes in their flexibility. 

Revocable trusts, which tend to be more prevalent for our clients, can be changed at any time. The grantor can alter the terms, add or amend beneficiaries, and even access funds within the trust. But the downside is that there is less creditor protection and fewer tax benefits. 

Irrevocable trusts don’t have the same flexibility. It’s quite complex to make any changes once you establish an irrevocable trust. Irrevocable trusts tend to have more estate tax benefits since the assets technically belong to the trust, not the grantor. These vehicles can also be helpful if you want to protect your assets from creditors. 

Once you have a trust, it may be time to create a plan for which assets should fund it. Typically, after-tax brokerage accounts and real estate tend to work nicely in trusts. 

Doing so can complicate the asset, especially when real estate is involved. If you titled your house to the trust and wanted to sell your home to downsize in retirement, you would need to go through extra administrative red tape before selling, for example. 

Maximize Efficiency and Minimize Taxes

There are several ways to bring efficiency to your estate plan depending on your intent, desired beneficiaries, assets, and more. 

For you, that might mean making a beneficiary a joint owner on a checking or savings account to expedite the transfer when you pass away. People often take joint ownership for granted, but it can be an excellent tool depending on your circumstances. It’s also perhaps the most efficient tool for transferring cash. 

Married couples can also take advantage of joint ownership on real estate and other taxable accounts like brokerage accounts and other investments. 

Pro Tip: Select your beneficiaries wisely. Simply naming the proper beneficiary can be a powerful estate planning tool. Work with your attorney to make sure your beneficiaries are updated to reflect your goals. 

Creating an estate plan that honors your intent, maximizes efficiency, and minimizes costs and taxes is a tall order, but it can be done with the right team by your side. Here at Legacy Wealth, we’re passionate about helping you build a plan that works best for you and your family. Get in touch with us today to see if we can help you coordinate your financial plan with your estate plan.

Disclosure:

Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed.

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How To Split Your Assets Without Dividing Your Family—An Estate Planning Guide

Estate planning stirs several emotions. 

The impacts of your estate plan travel far beyond the paperwork and legal designations to include your family, friends, and loved ones. The situation gets even more murky with multiple heirs. While you want to think that your loved ones will make rational choices when you’re gone, love, death, and money tend to be a hotbed of unpredictability. 

It’s essential to have a written plan to clearly document your wishes. A robust estate plan may not squelch family drama, but it will make your wishes clear and legally binding. 

Once that’s set, discuss the plan beforehand to snuff contentious embers before they spread like wildfire. How can you structure your assets and transfer wealth without tearing your family apart in the process? Let’s take a look.  

Let These Two Words Define The Wealth Transfer Process: Fair and Equitable 

Dividing your estate is certainly not a walk in the park and you are free to split your assets in any manner that you find most appropriate. That said, it’s important to consider the long-term impacts of unbalanced inheritances. 

It can lead to tension, arguments, and even legal battles between siblings and loved ones—not the way you’d envision your legacy to be sure. There are several elements to consider, but throughout the process try to keep the words fair and equitable in mind.

Option 1: Split Inheritance Fairly

Perhaps the most straightforward option is to divide your estate evenly among your children. That may mean ensuring that each child receives the same financial value even if it comes in different forms—IRA, insurance, property, trust, etc. Your advisor can help you determine your options for splitting your assets evenly. 

It gets a bit tricky when business funds and real estate are in the mix. Perhaps one sibling wants to take over the family business and the other doesn’t or you want to leave the house to your kids but neither lives in the area. Think through what will be best for you and them throughout this process. You want your assets to be passed with intention and care—that starts with the planning process.

Option 2: Split Inheritance Equitably  

You may decide that dividing your estate evenly doesn’t make the most sense for you and your family. The idea is certainly growing in popularity, but how can you go about it? Here are a few ideas.

  • Nail down your reasons 
    • Perhaps one family member requires more help/assistance than others whether it be special needs or a disability. Leaving more money to support that person isn’t likely to raise concerns. 
    • Maybe you gave more financial assistance to one person throughout their life—school, wedding, down payment on a house—and want to leave more to another person for who you didn’t do those things. 
    • You might not want to give the same amount of money to someone who has proven to be financially irresponsible. 
    • Perhaps your son was your caregiver and you want to leave him and his family a little more because of all the help they have provided you throughout retirement.
  • Decide on a method
    • Select the right inheritance vehicle for your family whether that be a special needs trust (or another type of trust), investment account, family property, etc. 
  • Communicate your intentions
    • It’s important to let your children or other beneficiaries know about your plans so that no one is blindsided. The last thing you want is for your daughter to expect that she’s getting the house only to know at the last minute that you took out a reverse mortgage and she has to sell the house to pay back the loan. 

It’s your estate and you have the right to divide your assets in any manner you choose. It is valuable to remember that being as fair and equitable as possible could go a long way to maintain family relationships.

Make Inheritances Intentional

Different financial vehicles offer different benefits. If you think that your beneficiaries need more structure and control, a trust could be a good choice as you can set the terms for distributions.

There’s a big difference between establishing a trust and simply naming a beneficiary on an investment account. A trust carries more structure for both income and taxable purposes. If someone inherits a brokerage account, they have access to the entire balance upfront, which might not be what you envisioned. 

Your assets can also be better served in different investment vehicles. Should you leave your granddaughter a Roth IRA to help pay for school? Which vehicles will be more tax-efficient for heirs? 

Make sure you work with professionals who can help you understand the pros and cons of all your options and help guide you to maximize your assets for the next generation. 

Be Thoughtful About Personal Property

Often what spurs disagreements isn’t the IRA, it’s the family jewels, prized artwork, collectibles, or mom and dad’s famous china set. It’s essential to create a structured plan for your personal property. 

While you may not be able to make a running list of every possession you own, start thinking about the items you have and who you would like to receive your personal assets. First, identify the items that have significant and sentimental value. This is an important distinction!

Take mom’s 5-carat diamond and great grandpa’s World War II watch. The diamond has a significant financial value and the watch, while not financially valuable, holds immense sentimental and family value.  

Make thoughtful choices with each value type and consider gifting some of these items away while you’re alive. It might be more fulfilling for you to see your granddaughter wear your diamond and ruby bracelet or discuss rare manuscripts with your bibliophile son.

Your property doesn’t simply have to be divided among family members. It’s easy to get tunnel vision when it comes to giving away items but think about the person who would get the most value from an item. Say that you have an extensive coin collection that your family doesn’t want but your best friend would love—give the coins to your best friend! 

You may even be able to gift some of your items (like historical artifacts) to a museum. There are several avenues to consider beyond gifting items to the family. Give your things away to people who will appreciate them the most. 

Involve Key Parties Early On

Your estate plan is comprised of several people from professionals like your attorney, financial planner, and CPA to your family and loved ones filling other roles like executor, power of attorney, or trustee. 

The people you elect to fill these roles should be familiar with your plan and ready to act when need be. The executor of your estate should probably have a sense of your estate plan and get to know your financial team, for example. 

It’s important to us that we form relationships with the people involved in your estate plan so that things run as smoothly and efficiently as possible. Your estate deserves a coordinated and efficient plan with your legacy goals in mind. It’s our job to help you craft a plan that speaks to you and your heirs. 

Do you have questions about leaving a meaningful inheritance? Schedule a 15-minute call with our team today.

Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Legacy Wealth Advisors does not offer tax planning or legal services but may provide references to tax services or legal providers. Legacy Wealth Advisors may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters.

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What Are Your Options When You Inherit Property?

An inheritance can come with emotional and financial baggage. When you inherit property there are many things you will need to consider—what you want to do with the property, how the property fits into your financial picture, and the best way to honor and continue your loved one’s legacy all of which can be really overwhelming. 

Our team is here to help you sort through your options and take some of the load off your shoulders. In general, there are three things you can do when you inherit a house: move in, rent, or sell. Today, we are going to dive into each of these to give you a better sense of what they look like in practice. 

Should you move in?

When you inherit property, the first thing that comes to mind might be to move into the house. But before you make this choice, be sure you understand all of the financial and legal consequences. 

The first thing you’ll need to sort through is the mortgage. Does the house have an open mortgage and what type of mortgage is it? Most lenders allow the heirs to assume monthly payments but others stipulate the mortgage debt must be paid in full much sooner. Let’s take a look at some common examples:

  • Reverse mortgage
    • This is a financial product that allowed homeowners to access their home’s equity. But upon the owners’ death, the full balance of the mortgage is typically due within 6 months. This might limit your options to selling the property so you can settle the debt.
  • Due on sale clause
    • This clause stipulates that the entire balance of the mortgage is due when the property is transferred to someone else. It becomes especially important for non-family member beneficiaries as most family members would be able to assume regular mortgage payments. 
  • Mortgage paid by the estate
    • Sometimes the mortgage debt is settled and paid by the estate which makes your path much clearer. 

Let’s say you can assume the mortgage, the next question is can you afford it? You have to make sure that the home is suitable for your financial situation. Even if the mortgage payment is manageable, there are numerous other costs that come with home ownership like property taxes, insurance, ongoing maintenance, and more. You’ll also need to take a look at the general state of the house. Is it liveable or are there substantial repairs needed before you could reasonably move in?

You should also consider the change that a move would have on your lifestyle. Is the house in a different school district? Will you still be close to friends, family, and community members? A move could mean uprooting yours and your family’s lives. 

The next hurdle you will have to face is if you inherit the property with other people. This most often happens in the case of siblings. Multiple beneficiaries can cause strain especially if you all have different ideas of how the property should be used. There are a few options you can consider:

  • Buy out their portion of the property
    • If you do this, it is wise to set up a promissory note which outlines the steps you will take to pay back their share of the property. 
  • Sell the property and split the profits
  • Rent the property and split the profits

In order to decide what is best, it is important that you have open, honest conversations with your family both about what you think is best and about what they think is best. By actively listening to each other, you will be able to come up with a compromise that works best for all of you. 

Your options for renting

Renting the house is often a useful strategy but one that needs to be done with careful consideration. Being a landlord comes with many responsibilities and you want to make sure that you are able to make the most of it. 

By renting the property, you will still assume the mortgage and other basic financial responsibilities like insurance and taxes. But the key thing here will be to analyze the property’s rental potential. Ask yourself the following questions.

  • Is it in a desirable area?
    • School district, near entertainment, restaurants, access to public transportation, walkable, etc. 
  • How much could you reasonably charge for rent?
  • How long will it take to be profitable?
  • Do you have the financial means to take care of the property in a rental lull?
  • How much work will you need to put in to update it?

In addition to the financial considerations above, you’ll also need to think about your duties as a landlord. You will have to be available for maintenance repairs and also try to find a reliable tenant who will pay you on time and maintain the condition of the property.

Selling the property

The last, and perhaps simplest, solution when inheriting property is to sell it. Selling a family house can feel like a big deal, especially if the property has been in the family for generations. Remember, it isn’t the house that carries the legacy rather it’s the spirit, hope, and action that lives on each and every day.

While the financial costs of selling the house might be less than moving in or renting, you will still have some to consider like settling up the mortgage, real estate fees, staging, and costs for improvements. 

Under normal circumstances, capital gains tax is the difference between the original price of an item and the price that the item sold for. However, when you inherit a home, you can take advantage of a step-up tax basis. Under this rule, you are able to inherit the property at its current fair market value and you’ll only be taxed on any gains from the time of inheritance to the point of sale. 

How a financial advisor can help

Managing your inheritance is a big job, especially when property is in the mix. There are so many financial and legal considerations that your advisor team can help you navigate through.


No matter what you decide to do with your inheritance, our team at Legacy Wealth will be here to help you use it in a meaningful, fulfilling, and intentional way. Ready to see how our team can help you? Schedule a 15-minute call with us today.

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5 Big Things New Parents Need To Do With Their Estate Plans

Becoming new parents is an exciting and beautiful roller-coaster ride. Your new child will bring so much joy and love into your life. In this season of new life, adjusting to giggles, smiles, and lack of sleep a million things are probably racing through your head. Estate planning is likely at the back of that list, behind diapers, baby food, and the pile of laundry that seems to never end. 

But estate planning is an important tool for new parents as many aspects may need to be updated. It is important to not only plan and prepare for your child’s current needs but also their future needs should anything happen to you or your spouse.

Today, we wanted to bring you an article that talks about the changes new parents should consider making to their estate plans. Let’s dive in.

Modify your will

Often the first thing that comes to mind when you think about estate planning is a will. Wills are the cornerstone of your estate plan and once you have kids, you will need to establish a couple of important provisions particularly selecting and naming a guardian and trustee.

A will encompasses much more than spelling out a formal succession plan for your assets, it is a place where you are able to name the people who will have the legal responsibility to raise and care for your children should something happen to you and your spouse. 

Selecting a guardian for a child means choosing a person who will oversee the care and raising of the child. Guardians have a legal responsibility to raise the child in their care and provide basic necessities like housing, food, schooling, and anything related to their livelihood. 

Needless to say, appointing a legal guardian is an important job, one that you and your partner need to consider with great care. Before choosing a legal guardian, be sure you sit down and have a conversation with them to outline the responsibilities and see if they are up to the task. This is not something you want to blindside anyone with. These open conversations will give you and your child’s potential guardian the opportunity to be on the same page. 

If you don’t name a legal guardian, that decision will fall to the court. This is such an important decision and should be made with thought and care not by legal proceedings. 

The next person you will want to name in your will is your child’s trustee. A trustee handles the financial aspect of a child’s life like schooling, taxes, investments, and the distribution of any inheritance at the proper age. You can choose to have one person be both the guardian and the trustee it all depends on your comfort level and what makes the most sense for your situation. 

Again, be sure to talk with this person before you make it legally binding. Even though this is a tough conversation, it is better to create a plan you want rather than that choice going to the court.

Look into your insurance needs

You know that life insurance policy you’ve been meaning to get? Well, now is the perfect time to reevaluate your insurance needs. Caring for a child is expensive and should something happen to you or your spouse, you want to be protected.

Determining the type and scope of your insurance needs depends on a few factors:

  • Your net worth
  • Debts
  • Projected future expenses
  • Size of your family

For most parents, term life insurance is the best option. The premiums are affordable and you are able to purchase the insurance to cover a certain period of time, usually, until your child is no longer a minor or when they won’t be completely financially dependent. Your financial planner will be able to help you evaluate your unique insurance needs and make a plan for the type of policy that will serve your family best. 

You’ll also want to look at adding your child to your health insurance policy. Most policies have a limited time frame where you can add a new member to the plan. Check-in with your specific coverage to see how to add your child.

Establish financial and medical powers of attorney

A power of attorney is a legal arrangement that allows someone to make decisions on your behalf should you be unable to do so yourself. Establishing these designations will be really important for both the financial aspects of your estate and your personal medical needs. There are two types of POAs you’ll need to select:

  • Financial 
  • Medical directive

A financial POA gives the person of your choice the ability to make financial decisions on your behalf. This person will be responsible for bills, taxes, debts, and other expenses incurred by your estate. 

When you select a medical POA, you are choosing a person to make medical decisions on your behalf should you become incapacitated. This person will be the main point of contact for medical staff and will help carry out your wishes. As you will hear us say time and time again, sit down and have a conversation with this person before you name them as your medical POA. You will want to not only see if they are willing and able to do it but also be able to specifically outline your wishes so they know what you want and not have to interpret what you want. 

You can have the same person perform both the financial and medical POA duties but since both responsibilities are so intensive it might make sense to choose two people who work well together and can lend support to each other. 

Revise beneficiary designations

Beneficiaries are the people who inherit an account, policy, or asset from another person. You have to name beneficiaries on all sorts of accounts like:

  • Bank account (checking and savings)
  • 401(k)
  • IRA
  • Insurance policies
  • Trust
  • Other investment accounts
  • Real estate

In essence, any asset that you have established needs a beneficiary. You may want to name your child as a new beneficiary on one or more of your accounts (keep in mind that minors can’t control property) and now is a good time to look into that.

Naming beneficiaries is an important task as these designations outweigh those in your will. Say, for example, you have an ex-spouse as a beneficiary on your life insurance policy but name your child as the beneficiary of that same account in your will. The beneficiary designation on the policy itself is the one that will be valid in court. Since a beneficiary designation is more legally binding, it is important to review your beneficiaries periodically to ensure everything is up to date.

Work with your team of professionals

Estate planning is a complex process, one that requires a strong, cohesive professional team to get right. It is always important to seek the counsel of your estate planning attorney, financial planner, and tax professional in order to create a holistic, comprehensive estate plan that is tailored to fit your needs. 

Our team at Legacy Wealth is passionate about estate planning and helping you craft a strong estate plan that provides comfort for you and your family. We are here to help you see the entire picture of your financial life and estate planning is a big part of that. 

Our team loves to help families use their finances in a way that enhances their lives and creates a legacy that starts today and lives on far into the future. 


Ready to get your estate plan in order? Schedule a 15-minute call with us today to see how our team can serve you.

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4 Ways Emotions Get In The Way Of Estate Planning (And How To Overcome It)

Estate planning is a big process, and with it can come a lot of fear and uncertainty about the future. Whenever you face something big: a new transition, a presentation at work, a tough sales pitch, or a difficult conversation you may feel uncomfortable, nervous, and unsure. But if you let those negative emotions fester and take center stage, you would often be disappointed by the end result.

Believe it or not but, this is how so many people approach estate planning—out of fear. This negative emotion can cloud your experience and hinder you from creating a meaningful estate plan that is reflective of your needs now and continues your legacy in the future.

Our goal at Legacy Wealth is to help you craft a meaningful and intentional plan for your life and a legacy that lives on for generations to come. In order to do that, you have to dig deep and work through your trepidation around your estate plan and we are here to help. 

Today, our team will delve into four root causes for emotional turbulence in estate planning and how to harness those negative emotions and turn them into something positive.

1. Coming to terms with mortality

We know what you must be thinking, starting off with mortality is a pretty gutsy move but this is a big fear for many people and can stand in the way of creating a strong estate plan. Coming to terms with death, especially your own or that of a loved one is never easy, but creating a plan for those left behind can be a greater comfort than you might think. 

There are important consequences to consider for your beneficiaries should you pass away without an updated estate plan. That can lead to long (billable) hours and costly fees associated with probate, lawyers, and taxes, not to mention the added stress of figuring out how assets will be distributed. All of these decisions, that could have been made by you or discussed with family, are now up to the legal designations of the court which can cause hardship for those handling it. 

In fact, with the severity of COVID-19 many people have given new thought to updating their wills and other estate planning documents like a power of attorney and medical directive who are able to make decisions (either financial or medical) for you should you become incapacitated. 

End-of-life planning may not be the most exciting thing on your to-do list but it is important and in our current world climate many people are taking note of that and doing something about it. 

You might think that talking about death estate planning seems surreal, morbid, or unpleasant. But try to reframe this narrative in your mind. Write a new story. Think about all of the things you have accomplished and what type of life and legacy you want to pass onto your family and loved ones. This is actually quite beautiful as it gives estate planning an aura of hope and promise for the future. 

2. Giving up control

Let’s face it, we are all control freaks. Whether it is how to load the dishwasher or sign off on an email or to use or not to use the Oxford comma, we all have our own way of doing things and it is really hard to change those habits once they are formed. Estate planning can in some ways feel like a loss of control which is really offputting for many of us.

But fear not. In fact, estate planning is really the opposite. It gives you complete control over your legacy both now and in the future. It gives you the opportunity to set things up in a way that makes the most sense to you. You can use your estate plan to establish a pattern of charitable giving or pass down precious heirlooms or help support your grandchild’s education.

When you commit to designing your estate plan from the ground up, you are able to craft each and every piece to function in the way you want, in the way that is true to who you are and the legacy you want to live not only today but each and every day far into the future.  

Use the opportunity of crafting your estate plan to be intentional and meaningful with the assets you have amassed throughout the years. Remember, legacy planning isn’t just about planning for a future that you can’t see. Your legacy starts now. Your legacy is established every day and each day is a new opportunity to grow and strengthen it. So estate planning isn’t about losing control, it is about gaining a whole new perspective and dimension to your planning journey. 

3. Uncertainty about the process

Sometimes estate planning fears are about the process itself. Whether it is the fear of working with a lawyer or not understanding how the process works or even the cost and time it takes to complete. These fears can keep people from updating their plans and really making it what they want and need it to be.

Since estate planning is a deeply personal process, it is imperative that you work with a professional you trust and respect. You want to work with someone who actually cares about you and your situation, someone who is passionate about helping you create a plan that is best for you. If you don’t have that, you need to find a new professional. 

If you are feeling overwhelmed by the process, you are not alone. We recommend that you take estate planning one step at a time. You don’t need to find the perfect language for your will, establish a trust, and change all of your beneficiaries in one day. 

Take the process one step at a time and work with a professional to create a timeline and strategy for tackling each piece that works for you. By taking the process at your own pace, you are likely to feel less overwhelmed and more productive, as each piece will be able to have more intention behind it. 

4. Handling family pressure

It’s no secret that talking about your estate plan is never easy. Likely you are navigating family pressure along the way which adds another layer of complexity to the situation. The best way to combat this pressure and tackle it head-on is to have open, honest, highly transparent conversations with your spouse, kids, family, and other loved ones who are apart of the process in any way. 

Before you leave your oldest child as the sole beneficiary on the family estate, talk to them and your other children to see how they feel about that. Some might be relieved whereas others may need additional clarification and support on why you have decided to make that decision. But by talking about it, you give everyone a chance to talk to one another and ask questions which can alleviate so many arguments down the road. 

This also gives you the opportunity to talk to those most important to you about your wishes. Hearing these things directly from you allows you to all be on the same page and brings honesty and truth to the relationship which will not only ensure your wishes are carried out as you intended but more importantly, strengthen your relationship with your loved ones. 

Talking about your estate planning opens up space for family growth and building relationships as opposed to causing divisions or separations. 

Legacy Wealth Can Help

Our team at Legacy Wealth is committed to the health and wellbeing of your financial plan and estate planning is a big part of that. We know that the process can be overwhelming, but we are here to help you at your pace and craft a plan that is truly and uniquely designed for you.


It’s time for you to look at your legacy in a new way and see the role that estate planning plays in that. Ready to take another look at your plan? Schedule a 15-minute consultation with us. We can’t wait to hear from you.

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What Is A Trust (And Should You Have One)?

What comes to mind when you think of a trust?

Probably a wealthy kid with too much gel in their hair, a sweater vest, a tie, and a yacht. Were we close? Trusts are often associated with the upper-class old-money, so-to-speak, but trusts play a much bigger role and have a broader reach than that. Trusts are actually quite an accessible and ubiquitous tool used by many families as part of a strong estate plan.

What is a trust? How does it work? Should you include one as part of your estate planning strategy? Let’s discover the answers together.

The basics of a trust

A trust is a fiduciary relationship that enhances the safety and control of a person’s assets or property. This relationship consists of three distinct parties:

  • Grantor: The person who establishes the trust and wants to pass down assets to another person or entity.
  • Trustee: The third-party person or entity (bank) who controls and manages the assets from the grantor.
  • Beneficiary: The eventual recipient of the assets or property.

So how does it work? In essence, the grantor works with their attorney to create a legal stipulation for how and to whom their assets will be distributed either while they are alive or after they pass away. This team works together to decide how to transfer assets to the trustee who then holds and manages the assets until they can be properly distributed to the chosen beneficiary. 

Trusts are used in a myriad of ways with the ultimate goal of keeping assets safe and secure. Depending on the type of trust you establish, they can go into effect while you are living, become incapacitated, and after you pass away making them a much more flexible arrangement than a will, which only becomes valid after death. 

Key benefits of a trust

Trusts are common in estate planning for many reasons, chief among them protecting and securing assets from one person to another. But there are a number of other important benefits that a trust offers:

  • Protect assets from creditors 
  • Safeguard assets after a divorce 
  • Increased flexibility
  • Less paperwork
  • More tax-efficient
  • Time-saver
  • Privacy

Trusts often avoid probate, a public, legal proceeding where your estate plan becomes “valid” in the eyes of the law. This process settles your estate and ensures that wishes stipulated in a will like property, assets, guardianship, etc. actually occur. 

Many people wish to avoid this process if possible as it can be costly in court and legal fees and makes your estate a public matter. By avoiding probate you are able to maintain privacy and ease during the already difficult task of managing and dividing an estate. 

Are there different types of trusts?

The short answer to this question is yes. There are so many different types of trusts that you can establish based on your unique circumstances and needs. But today we are going to divide trusts into a few broad categories: revocable vs irrevocable and living vs testamentary. Remember trusts can fall into one or more categories. 

The big difference between a revocable and irrevocable trust is when and how it can be changed or altered. A revocable trust can be altered or terminated during a person’s lifetime. This type of trust can bring flexibility and even additional income into the grantor’s life. The terms can be adjusted to suit your needs while living and the assets/property transferred to the chosen beneficiaries after you pass away. 

A revocable trust can offer more flexibility but that doesn’t come without a cost. These types of trusts are often expensive to maintain, don’t have tax advantages for the grantor, and require additional leg work to ensure all assets are adequately and comprehensively protected. 

An irrevocable trust, on the other hand, can’t be changed, altered, or terminated after it is created. Once it is created, the terms are written in stone. This can be beneficial in terms of protection from creditors and mitigating estate taxes. 

A living trust, also known as inter-vivos trust, allows the grantor to establish and fund the trust during their lifetime. They are also able to use the funds for their benefit throughout their life. The assets are then transferred to the selected beneficiaries upon the grantor’s death by way of a successor trustee. A living trust can be either revocable or irrevocable depending on how it is set up. 

A testamentary trust, otherwise known as a will trust, goes into effect after a person’s death. Testamentary trusts are always irrevocable as they aren’t funded or created until the grantor’s death. 

Why consider a trust?

A trust is an excellent vehicle for controlling your wealth and assets, especially where multiple generations are concerned. By establishing a trust, you are able to provide a direct line of where your asset will go, to whom, and also how they will be distributed. This can be especially helpful if you have minor children or other beneficiaries who might benefit from a structured approach to their inheritance.

Using a trust can also help you establish your legacy and increase both your and your beneficiaries’ propensity for charitable giving. With a charitable remainder trust, for example, you can select a certain percentage of your assets to be given to your beneficiaries with the rest of the money to be distributed to a charity. This adds a charitable dimension to your estate plan and can help establish your legacy of giving even after you pass away. 

A trust really allows you to customize the way you divide your estate and can do so in a safe, tax-efficient manner. 

Our team at Legacy Wealth is here to help you live out your legacy each and every day. Part of that legacy means ensuring that your family and loved ones are well protected and taken care of after you are gone. This means that a strong estate planning strategy should be an integral part of your retirement plan. 

Estate planning isn’t easy, but that is why we are here to help you assess your needs, protect your assets, and let your legacy live on for generations to come. Are you interested to learn more about how a trust could impact your estate plan? Schedule a 15-minute call with us today. 

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How To Better Talk To Your Parents About Their Estate Plan

Estate planning is an emotionally charged topic. It is so much more than wills, legal documents, and paper trails. It forces us to plan for a future that we won’t see. This reality causes a harsh glare on many, leaving this important process in the background, often until it is too late. 

It is always hard to watch a loved one grow older, but that difficulty can’t lead to a blindspot in communication and support of them throughout this process. Talking to your parents about their estate plan may be a difficult set of conversations, but when approached with grace, care, and support, you all will establish trust and honesty in your relationship. 

Today, we are going to talk about a few things to keep in mind as you approach the topic of estate planning with your parents.

1. Tap into compassion

One of the reasons it is so difficult to talk to parents about their estate plan is the changing dynamics of the situation. While you are grown and have established your own life as an adult, it is important to remember that you are still their kid. 

This parent-child dynamic has often been the parents taking the reigns in giving advice and helping their child, not the other way around. Some people may have a more difficult time with this change than others, making compassion and empathy big components for you to keep in mind. 

You can remind them that planning when times are good to prepare for when they aren’t can reduce stress and create a better sense of calm for what the future holds. 

2. Show don’t tell

One of the first things you learn about writing stories is to show, not tell. Let’s take a look at an example. 

#1: Jane was nervous

#2: Her fingers twitched when he approached and beads of sweat pooled in her palm. 

Both of these sentences convey that Jane is uneasy, but the second one paints a more interesting picture. It also gives the reader the opportunity to know Jane better, making them more invested in her as a character. This same principle can be applied to your conversation with your parents. 

If you know your parents are struggling with debt in retirement, for example, instead of approaching this concern from a judgmental place, consider using yourself as an example to illustrate the point. Take this opportunity to open up and tell them how your own debt-repayment strategy has been tough but allowed you to do so many new things in life. 

The same idea can be said for a particular element of their estate plan. Maybe your parents are putting off creating a will. Instead of scolding them for this, consider talking to them about your own experience creating your will. Perhaps, it got you thinking of your life and legacy in a new way that could inspire them. 

Don’t come from a place of judgment. Instead, use your own experience as a starting point to help guide you through the conversation.

3. Honesty is the best policy

Sometimes cliches are there for a reason, and this one certainly is. When talking about estate plans with your parents, honesty really is the best policy. When you are honest about your questions or concerns, you will be better able to have a real conversation with them and help eliminate confusion and carve a path forward. 

If you are concerned, it is important that you voice that concern. Be honest with yourself and also your parents. This will help establish a practice of honesty in financial matters which can strengthen your relationship. 

4. Establish and respect boundaries

Boundaries are a healthy part of your personal and financial life. There may be topics and situations that aren’t appropriate for you to voice your opinion on and vise versa for your parents, especially where estate planning is concerned. 

Be sure that you know your own and respect your parent’s boundaries throughout this process. You don’t need to push your worry, concern, or opinions on them. The most important thing is being there for them and giving them the support that they need. 

5. Take it slow

Rome wasn’t built in a day, and neither will your parent’s estate plan. This is a complex process that takes time to get right. You probably won’t be able to figure everything out in one conversation so don’t try to. 

Take this process one step at a time and give yourself and your parents the time and space to complete each step. By having these conversations in bite-sized pieces, talking about finances will become more natural. 

It might feel awkward at first, but with time and practice, it may become a regular part of your family dynamic. This can establish a pattern of long-term, healthy conversations about money and can help you and your parents feel more open and comfortable talking to the other about finances.

Now that you have established that level of honesty and trust, you both will be able to make the most of your conversations. This can help avoid missing something or burning out. 

The bottom line

Creating an estate plan is hard. But having to talk about that plan with your loved ones might be even harder. Talking about financial matters with family may not be easy, but it is important for healthy relationships and smooth transitions. 

When you approach a difficult conversation with compassion, clarity, and honesty, you will be better able to have a productive, healthy outcome. These conversations with your parents may help them think about their estate plan and legacy in a new way. Remember, these conversations take time and a demonstrated history of trust and care to go well. 

Here at Legacy Wealth, we are passionate about helping families live their legacy. Interested in learning more? Schedule a 15-minute call with us. We can’t wait to hear from you. 

Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Legacy Wealth Advisors does not offer tax planning or legal services but may provide references to tax services or legal providers. Legacy Wealth Advisors may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters.

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