How To Best Prepare To Care For An Aging Parent

Caring for an older relative or loved one is a nuanced process that requires the right combination of grace, candor, and preparation. Everything from financial to emotional to health responsibilities may change, and each of these changes can bring about their own sets of challenges and opportunities. 

While there may always be a dose of uncertainty as your family undergoes these changes, it’s important to do your best to prepare for what’s to come. Let’s look at a brief guide, which will provide you with some tools and resources to get started. 

Embrace Conversations Early and Often

Broaching the topic of caring for your aging parent is likely more stressful than when you tiptoed into the house four hours past curfew, but these are valuable and pragmatic conversations to have. Avoiding tough conversations will only bring more hardship later on. 

Plan when times are good to bring more stability and clarity when something goes wrong. You’ll hear us echo this phrase quite often throughout this article because of its utmost value. 

Let’s take a look at a few tips to have healthier, more productive conversations with your loved ones about their care.

Schedule a time in advance. Bombarding someone at a family dinner isn’t likely the best approach. Give both your loved ones, you, and/or any siblings time to prepare. 

Tackle one topic at a time. Creating a plan will take more time than afternoon tea, so consider spreading these talks out. Discuss their plans and wishes, finances, responsibilities, and expectations.

Create an agenda. Conversations about care can take many twists and turns since there is so much ground to cover. Write your questions out in advance, so you can remain on track and ensure you get adequate answers to your questions. Encourage your loved ones to ask questions too—these conversations are always two-way streets.  

Do more listening. You can ask some questions but really listen to your loved one’s wishes. By actively listening, you establish a foundation of respect. 

Speak openly and honestly. Now isn’t the time for veiled euphemisms. You and your loved ones must communicate directly and clearly to create a plan that actually works for both of you. 

Understand your loved one’s goals. This comes from listening to them and doing what you can to help further their vision. Remember, it’s not necessarily about what you want, but how you can support your loved one.

Set-up a family meeting with their advisor. Sometimes conversations about estates and long-term care can be muddled with numbers and legal jargon. This is where an advisor could come in. Your loved one’s advisor can help shed light on the current plan and help facilitate these talks. Many people find a benefit to a third-party professional in the room.

Planning for care involves several moving parts and taking these topics one step at a time will help you and your loved ones build a plan that works for everyone involved. The earlier you can have these conversations, the better because you’ll be able to work out kinks in the plan and truly understand what your loved one needs, instead of figuring it out as you go along.

Assess Your Loved One’s Needs (And Revise When Necessary)

Care encompasses many elements from doctor’s appointments to daily needs to living arrangements to emotional shifts to financial requirements and more. Before you get too overwhelmed, start with the most important thing—determining your loved one’s priorities. You’ll need to discover the following. 

Where do they want to live? Do they want to stay in their house, move in with you/a sibling, or look into a retirement home?

How will the care be paid for? What retirement assets can be used? Do they have long-term care insurance? Will you be responsible for any portion of their care?

Who will help execute the plan? Have you created a team of professionals? How will you/your family divide responsibilities?

This list will be different for everyone but should include the following categories: 

-Home maintenance/set-up (necessary improvements, moving, etc.)

-Medical needs (doctor’s appointments, medication, PT, etc.)

-Personal needs (communication, etc.)

-Financial needs (assets/investments, insurance, estate plan, trusts, etc.)

Again, it’s critical to take this process step by step and also remember that these priorities can shift as you continue through the process. In the beginning, your loved one may wish to remain in their home, but the constant maintenance and lack of socialization might cause them to reconsider their living arrangements. This is just one example of change and is something you should account for in your planning journey. 

Form a Team You All Trust

As the adage goes—teamwork makes the dream work. Caring for an aging relative is certainly no exception to the rule. A strong team can help you build, maintain, and execute a plan that works. Our advice? Create three teams:

#1: Personal team (family, friends, community members to help with daily tasks, moral support, etc.)

#2: Medical team (primary care doctor, specialist, caregiver, etc.)

#3: Financial team (financial planner, tax professional, and estate planning attorney).

The right team can help you and your family create a conscious and coordinated plan. Even though you may want to take on the responsibility alone, it’s always best if you have a trusted team to help with the daily tasks. This might be your spouse, children, siblings, or other relatives. 

You might also bring in a caregiver a couple of afternoons per week to help. It all depends on what your loved ones need and the time you have to dedicate to the process. If both you and your spouse are working full time, adding caregiving to your plate could be too much. Discuss options and make a plan that works for everyone. Stretching yourself too thin won’t be good for you or your loved ones. Be sure to maximize outside resources. 

When it comes to your loved one’s finances, their financial advisor, estate planning attorney, and CPA are the critical trinity. 

These professionals should have coordinated conversations to help create a robust and stable plan. You might set up a meeting, so all three of these professionals are on the same page with regards to your loved one’s wishes.

It’s far easier to build a reliable plan when all three of these professionals work toward a shared goal. That’s one of the most lucrative benefits we provide our clients—a coordinated and seamless financial experience. We offer an in-house financial advisor, estate planning attorney, and CPA, so you can have confidence that each professional knows you and your goals and is working to help you achieve them. 

Put The Plan In Motion

Once you have a plan, start at the top and work your way down. The plan doesn’t have to be completed in a day but chip away at it with your family so you can all find confidence and comfort knowing that your loved one is taken care of. 

One week, you might set up an appointment to update their will, the next week it’s interviewing part-time caregivers, etc. Remember, the plan will always need revisions and updates as things change, but it’s a whole lot simpler to revise something rather than starting from scratch. Understanding your loved one’s goals, values, and priorities will help you all make the best choices moving forward.

At Legacy Wealth, we love serving families just like you. Our family-focused approach gives us unique tools and resources to help you navigate a successful financial future for you and your family. No matter where you are in your caregiving journey, we would love to help you. Schedule a 15-minute call with us today to learn more.

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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7 Financial Tasks To Complete Before The New Year

In the blink of an eye, another year is coming to a close and a new one ready to begin. There are so many wonderful things to look forward to at the end of the year from parties to family gatherings to traditions but in the midst of the holiday celebrations, it is important to take some time to prepare your finances for the new year. 

By prioritizing the health of your finances, you will set yourself up for success in the new year. Today, we are going to look at 7 tasks to complete before the new year. 

1. Take your RMDs

If you are 70 ½, it is important that you take your required minimum distributions from all of your qualifying accounts (401k, IRA). Should you neglect to take them or not withdraw enough by December 31, the IRS will issue a 50% penalty on the money that should have been taken out. This penalty could really hurt as the distributions will also be taxed at your ordinary-income rate. 

Remember, each account has a separate RMD, so if you have a 401(k) and a traditional IRA you would need to take your RMDs from both accounts. The only account that does not have RMDs is a Roth IRA. An inherited Roth IRA, on the other hand, does have required distributions for beneficiaries.

Many retirees look for ways to reduce their RMDs as long as possible to mitigate their tax bill and one strategy to look into is donating all or a portion of your RMDs to charity through a qualified charitable distribution (QCD). With a QCD a contribution is made directly through a traditional IRA to the charity of your choice. The money isn’t taxed which allows you to lessen your tax bill while making a bigger impact on a cause you care about. 

2. Remember your HSA and FSA

If you have a health savings account (HSA) be sure you have contributed the maximum amount possible. For 2019, that is $3500 for single filers and $7,000 for those who are married and filing jointly. 

Your HSA is a wonderful savings tool for healthcare-related spending. With this account, you are able to contribute with pre-tax dollars, let the investment grow tax-free, and withdraw the money tax-free as long as it is used for a qualifying medical expense. An HSA is a great strategy to save for future medical costs as the funds roll over year after year. 

A flexible spending account (FSA) differs from an HSA in one key way: the funds expire at the end of each year. With an FSA, you will need to be more strategic about contributing money into the fund, because each year the funds expire and you will need to start over. If you have some extra money in your account, perhaps now is the time to get a new pair of glasses or contact lenses, no matter what it is you purchase just sure your money isn’t going to waste.

3. Max out your 401(k)

Saving for retirement is one of the biggest financial goals you have. With dwindling pensions and the shaky legs of Social Security, reliance on personal savings is higher than ever before. A great way to both maximize your retirement savings and saving you some money on your tax bill is to contribute the maximum amount to your 401(k) which is $19,000 for 2019. If you are 50 or older, you are also eligible for a $6,000 catch-up contribution, totaling $25,000. 

Putting money toward your 401k will reduce your overall income for the year, therefore lessening your tax burden. If you can’t put the maximum amount of money into the 401k, do your best to get as close as possible to that number. 

4. Check-in on your investments

As the year ends, it is a great time to look at your investment channels and see if you will need to rebalance your portfolio. Keep your risk tolerance and financial goals in mind as you examine this. If you are closer to retirement, for example, you may want to sell off more assets in the coming years. Be sure to look at where you are at in your life and how you want to move forward. 

5. Assess your debt

Creating regular check-ins regarding your debt will help you with your plan to pay it down. Take a look at the debt you still have and what measures you have taken and want to take in the future. Are you in credit card debt? Is your student loan payment still hounding you month to month? Be sure you know the type of debt you have and work with a financial advisor to help you make a plan to get rid of it. Living debt-free might be the anomaly, but it is something to work toward. With a strong plan and drive to stick with it, you will set yourself up for success.  

6. Automate where you can

Automation is a wonderful addition to your financial strategy, It can help ensure that your bills are paid on time which will help your credit score while also improving your saving strategy with automatic contributions. By finding the places in your financial life to automate, you will take some of the pressure off of you to remember payments and contributions each month. 

7. Set new goals

The end of the year is a great time for reflection. It gives you the space to see what has been working and what needs to change. Take some time at the end of this year to evaluate your financial goals. What were you able to accomplish, and what is still left to do? Are you on track to reaching your goals? What roadblocks stood in your way and how can you work to change that in the new year? By proactively looking at your goals you will be better able to set new ones and attain the ones you already have. 

There are so many things to do in order to ready your finances for the new year. The most important thing is that you take the time to get your finances in the best shape possible to start the new year off right. Are your finances ready for January? Schedule a 15-minute call, we would love to work with you!

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Do Your Financial Goals Really Impact Your Life?

“Shoot for the moon. Even if you miss, you’ll land among the stars.” –Les Brown

This quote transports the reader to a mystical night, glimmering with hope and promise, and is the optimal backdrop for discussing financial goals. As financial planners, we talk about goal setting all the time, but what does that process really do for your financial plan, and can your goals truly affect your life?

We hope you’ll discover the central role that your goals play not only in your financial plan but also in how you live your life.

Goals are the heart of your plan

Your financial goals can be likened to the heart of your financial plan. Knowing your goals helps chart the course for our financial recommendations and lay the groundwork for your financial habits. Let’s look at a couple of examples. 

A couple whose retirement goal centers on living in their current family property in Northern Michigan will need a different financial set up than a couple who would prefer to spend the summers in Michigan but the winters in Florida. Snowbirds have unique tax considerations, housing options, travel costs, and more, making this goal special to them, and their financial plan. 

Their retirement lifestyle goals may mean that they have to save more in the years to come, which could be maxing out both spouse’s 401ks to fully funding their IRAs to strategically increasing funds in their portfolios. This increase in savings may mean, however, that other elements of their current lifestyle need to shift, like cutting costs on housing, entertainment, meals out, subscriptions, gift budgets, and more. 

As you can see, your goals set the tone for your financial plan. They also catalyze your actions and habits, which establish the framework for your financial life.

Beyond your financial habits, your goals impact the way you view the world and the satisfaction you find with your life. Ask yourself,

  • Is there a certain path you’ve always wanted to pursue? (career trajectory, schooling, etc.)
  • Where do you find meaning, purpose, and fulfillment?
  • How can your goals support and drive those dreams?

Goals can help you figure out what’s most important to you and live your life with intention, confidence, and hope.

We can talk with you about your unique goals, values, and aspirations and help you align your money with your goals. Money is simply a vehicle to help you live your life. We love working with clients to figure out a way to use their financial resources in meaningful, fulfilling ways. 

Know the difference between short and long-term goals

It’s easy to clump all of your goals together but there are crucial differences between short-term and long-term goals.

Short-term goals are things that you want to accomplish in the 0-5 year mark. For you, that might mean helping fund your grandchild’s education, pursue an encore career, or become debt-free. 

Long-term goals, on the other hand, represent a more extended time frame. This could be something like saving enough to fund your dream retirement, pay off your mortgage, or find financial freedom.

Why is it important to have a mix of short and long term goals? Your goals inspire motivation and progress. They also give you something to work towards while bringing balance to your life. It’s essential to use your money in a way that is fulfilling both now and in the future; a healthy mix of goals helps you do that. 

If your only goal was to retire comfortably and you channeled every financial resource towards that goal, you might miss some elements along the way that were also important to you, like pursuing an advanced degree, buying a house, or having a more active charitable giving plan. 

Prioritize your goals effectively

Creating your goals is just the first step. The next is being able to prioritize them. You can’t realistically achieve all of your goals at the same time, so this is where you have to focus your efforts on the most critical ones and work from there. Ask yourself, 

  • Which goals are the most important to you now and in the future?
  • Are any of your goals time-sensitive?
  • How will funding certain goals bring you joy and fulfillment?
  • Are your current financial habits aligned with your goals?
  • Which goals best reflect your values?

These questions are here to get you thinking deeper about the goals you set and the role they play in your finances and your life. When you create goals with intention, you place more value and emphasis on the process, which sets you up for success. 

It’s crucial to know that you don’t have to fund your goals one at a time. Funding your goals is all about finding the right balance between living for today and saving for the future. 

Don’t be afraid to make changes

Goals and financial planning have a lot in common: they are always changing. 

Your life doesn’t stand still and neither will your goals. The pandemic, for example, may have shifted your priorities or caused you to change your plan, and that is okay. Plans are made to be changed and as long as you approach any change with intention and meaning, your goals will still be able to guide you. 

Are you expecting your first child? Did you just launch a new business? Are you thinking about going back to school? These are significant and powerful life changes, so you may have to adjust your goals and plan accordingly. Some of these changes will impact your debt and cash flow, which means you’ll need to think even deeper about saving for the future and maintaining your progress toward long-term goals. 

At some point in your life, your goals will need to change. But when you take the time to intentionally weave your goals into your personal and financial plan, they will always be your northern star, guiding you where you want to go. 

As the sun sets on 2020, you might be thinking about the goals you want to set for yourself in the new year. Our team would love to help you think through your goals and how we can set your finances up to support them. Schedule a 15-minute call with us today to learn more. 

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How To Spend Money Better This Holiday Season

Tis’ the season for cozy sweaters, long evenings, peppermint everything, and flurries in the forecast. There are many changes that accompany the winter months, and spending money is one of them. 

The United States often sets records for holiday shopping, and last year was no different. In 2019, individual spending averages soared to nearly $1,000 creating a bounty of $1 trillion in total holiday spending. But odds are those figures will shift in 2020.

The economic impacts of the pandemic may alter how you can and should spend your money this holiday season. But just because spending may change, doesn’t suggest it has to mean less. Spending with intention brings more interest, substance, and purpose both throughout the holiday season and beyond. 

Today, we are going to look at some fundamental ways to bring more significance and value to your spending habits this year. 

Build a spending plan

People hate making budgets. They feel restrictive and constraining, causing people to either break them or abandon them altogether. Budgets also come with a mental hurdle. When people surpass even one line item of their budget, they feel discouraged and aren’t likely to stick to the rest of their plan. 

This season, we encourage you to throw out your budget. Yep, you heard that right. Trade your budget for a more practical alternative— a spending plan. A spending plan helps you think deeper about not only what you spend, but why you spend. That reason asks you to think more critically about your spending habits and is crucial to keeping the credit card bills at bay. 

Instead of putting a hard and fast limit on your holiday spending, try to etch a plan for your holiday gifts. Keep in mind that just because you don’t have a budget doesn’t mean you should pack items into your cart without a care in the world like it’s 1999.

Where a budget is restrictive, a spending plan gives you the opportunity to make a deliberate plan with your money.

Our tip? Pull up a spreadsheet or get a piece of paper if you prefer, and make a list of who you wish to give gifts to and what you plan to give them. Casually browsing through aisles or aimlessly clicking through webpages can actually cause you to spend more. But when you make a plan for your holiday shopping, you can figure out the right gifts, carefully look for sales, all while spending a reasonable amount of money. 

Let’s recap on ways to make a spending plan that works:

  • Figure out how much money you should realistically (and reasonably) spend
  • Don’t spend money for the sake of spending money
  • Plan out your gifts ahead of time so you know what you’re looking for
  • Wait for sales 
  • Get creative with your gifts

Change the way you gift

Buying presents just to buy presents won’t bring you (or the recipient) true happiness this season. Think about gifts or experiences that will make an impact on your family’s life. 

Perhaps your granddaughter is learning photography. You could get her an online class or a subscription to Photoshop, for example. This encourages spending intentionally. It isn’t a piece of clothing she probably won’t like or a lipgloss that will end up buried in the back of a drawer. It’s furthering a hobby and passion, which makes that gift even more special. 

Remember, intentional gifting doesn’t have to be expensive. Did your family experience a recent change like a wedding or a new child? Giving a photo album, framed family picture, a custom family calendar can remind you and your family of the special moments you shared even during these extraordinary moments. 

It’s entirely possible that family members may not be able to gather in the same way this year. The holidays usually mark increased travel and families finally coming together from different parts of the country, even the world. 

The pandemic will likely affect those decisions for many families. For older relatives who can’t travel, perhaps you want to get them a video device so you can stream them into your holiday dinners or get them a gift certificate to their favorite restaurant to cater in a Thanksgiving or other holiday meal. Anything you can do to prioritize time and togetherness will go a long way. People are craving connection, any gift you can give that inspires that connection will be met with more joy.

Last year, we might have encouraged that you gift experiences and quality time. This year, it’s vital to take that concept and apply it in new and innovative ways to keep your family and loved ones safe and healthy. 

We all hope for a positive change and long for the joy of smiling at one another across the table, holding hands, giving big bear hugs, and celebrating without worry, strain, or fear. One day that will be the case. For now, do what you can to make this season about love, gratitude, reflection, and care both for yourself and those you love. 

Adopt an attitude of gratitude

This season, we encourage you to shift your focus from shopping and gifting to centering your attention on gratitude. Ask yourself,

  • What are you grateful for this year?
  • What unexpected joys have you experienced during these changing times?
  • How can you better show gratitude to yourself and your loved ones?

Even in the midst of the pandemic, we encourage you to prioritize gratitude. This mindset will help bring more purpose to your gifting and help you center on what truly matters in your life. Now more than ever, it’s critical to prioritize what matters most.

This holiday season may not look the same, but the love, joy, and care you bring to it can make it just as special. If you’d like to talk more about your holiday spending plan, set up a 15-minute call with us today.

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Money Isn’t Your Goal, So Why Do You Think It Is?

Money represents many things—wealth, joy, security, advancement, opportunity, and more. While it can embody these traits, it isn’t inherently any of the ideals above. Money is simply money. It’s paper, metal, a number on an account, or a figure on a balance sheet. It isn’t the secret to unlock your wildest dreams.

Money isn’t the destination, rather it’s a tool to encourage the discovery and nurturing of your goals. Way too often people think that money is the answer, but this narrow perspective limits rather than opens your view and application of money. 

When money takes center stage, your goals, values, and priorities can fall to the wayside leading to a mindset of always craving and chasing more. Today, we are going to explore intentional ways to broaden your perspective about money and all the wonderful places it can lead.

What is ‘enough’?

Money plays an essential role in life. It’s how you pay your mortgage, put food on the table, and engage in the activities you enjoy. While money enables your lifestyle, it doesn’t dictate how you build your life. 

Let’s put this in perspective. We can start by asking a question,

What would you do with more money?

A litany of items likely flew into your mind whether it be a house project, vacation fund, new clothing, a trendy piece of technology, etc. Given the means to do so, people can find ways to spend money. 

But what is enough money? Is enough money when you can finally upgrade your car? What about when the latest model is released or a different brand has more high-end finishes? Your idea of ‘enough’ shifts to accommodate your current wants. 

By chasing the idea of attaining enough money, you find yourself in dangerous territory because enough money doesn’t exist. There will never be enough. Once you move past searching for enough money, you can dig into the true value that money can bring to your life.

Adopt a new money mindset

Your money mindset is the unique attitude you have about your finances. It impacts nearly every financial decision you make and can inform your habits. 

You may think you know how you approach your finances, but a little introspection can tell a different story. Here are a few questions to get you thinking about your current money mindset.

  • How do you feel about your financial life?
  • What comes to mind when you think about managing your finances?
  • Do you have confidence in your financial plan?
  • Are you comfortable talking about your finances with your spouse? How about with family members or close friends?
  • Do you take a more active or passive approach in your finances, and why?

These questions can be telling for how you view your finances in both the short and long term. Perhaps you earmark all of your money for the future or maybe you spend your paycheck the second it hits your account. 

It’s critical to address both the positive and negative ways you view your money because knowing both can inform your choices moving forward. Someone who operates under a scarcity mindset, for example, never believes they have enough money, which can bring about stress, fear, and anxiety. 

This type of mindset can hold you back from realizing financial flexibility, freedom, and joy. Simply shifting your money mindset can have a significant impact on your financial health. 

When you aren’t afraid to manage your finances, you could make a more sophisticated investment plan. Added confidence in your finances can help you have more open, honest conversations with your spouse. Maintaining a positive outlook for your finances can lead to healthy choices that enhance rather than detract your goals both now and in the future. 

Quality over quantity

You’ve heard this saying countless times before, and usually, the quality of something is more important than the quantity. Money is no exception to the rule. The more money you have doesn’t translate into a higher-quality life. Rather it’s what you do with your money that begins to define quality. 

When you stop thinking about money as the end-all-be-all of happiness, you can start to see the things you value most.

  • What brings you joy?
  • Where do you find peace and contentment?
  • How do you find fulfillment and meaning?

These answers can act as a window, letting you see the ways you can use your money to fulfill your deepest hopes and dreams.

Re-define your goals

If money isn’t the goal, what is? It might be to build a career you are passionate about, giving back to your community, or deepening your relationships with yourself and others. The idea here is to transition your goals away from money to the things that truly matter in your life.

It’s important to know that money doesn’t have to be entirely absent from your goals. You might have a goal to retire early or start your own business or buy a new house for your family or take some time to travel the world and broaden your horizons. All of these goals are exciting and involve money. But as you can see, money itself isn’t the goal. 

It’s less about making money the goal and more about structuring your financial life in a way that bolsters your goals. Take some time to define what your true goals are and the role money plays to help you achieve them. 

Money is a crucial part of life, but when it goes slightly out of focus, your true values, priorities, and meaning come in crystal clear. 

Our goal at Legacy Wealth is to help you define and achieve your goals. How can we do that for you? Schedule a 15-minute call with our team to find out more. We can’t wait to learn what matters most to you.

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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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How To Continue A Legacy With An Inheritance

There are two sides to every story. 

An inheritance is a wonderful gift but it is also marked by a time of loss and grief. Balancing these conflicting realities can be difficult for many people, leaving them feeling lost and unsure of how to proceed. But that doesn’t have to be the only side of the story we talk about.

In our minds, here at Legacy Wealth, we view inheritances as more than a gift and a burden, we also see them as a chance to continue to build and grow the legacy your family has passed down. Today, we want to talk about inheritances in this new light—the light that looks kindly on the past and burns bright for the future.

Understand the basics

An inheritance can come in many forms such as stocks, real estate, insurance, and other assets. In essence, an inheritance is a sum of money or security passed down to someone after a loved one’s passing.

But an inheritance is much more comprehensive than crowding around a living room to hear what was left to you in a will. The process is intricate and often involves probate, lawyers, court, and sometimes estate taxes as well. All of these moving pieces can be overwhelming, making it important to seek out financial and legal counsel to help you navigate through the process.

The biggest roadblock in this process most often comes from the expectations or lack thereof from the giver to the receiver. Talking about estate planning is never easy. The delicate nature of the subject leaves many families to avoid it altogether, which can cause added confusion or frustration to an already complex system. 

By having open, honest conversations with your loved ones about their estate plan, you will be better able to prepare for the things coming your way. You will be able to listen to your loved one’s wishes for their legacy and can then take that information and work to continue that legacy each and every day for generations until it becomes part of your family’s greater story. 

So, how can you do that?

Build a path

Many people who receive an inheritance wish to honor their loved one’s memory and use the gift in a way that would make their late relatives happy. But continuing a legacy isn’t about preserving a house or using the money in the exact same way that your loved one did during their life. 

Continuing a legacy is really about keeping the spirit and character of your family alive through the things that you do. You might not be interested in keeping the family estate, but your family’s legacy doesn’t stop at the grand doors, rather it’s what is represented inside. Maybe by selling the estate, you would be able to donate a portion of the funds to a charity who takes care of the homeless or sends food to those in need, whatever cause means the most to you and nod’s to the generous nature of your loved ones. Your inheritance should be adapted to fit your goals, values, and objectives. 

When looking at an inheritance from this lens, it can be really freeing because you can now use this tool you’ve been given and integrate it into your existing financial plan. Maybe the money will help you support your grandkid’s education or fund the overseas excursion you have been wanting to take or continue to solidify the family legacy through a property, scholarship, or other charitable efforts. 

Remember, not everyone will make the same choices as you do with your inheritance and that is okay. What worked for your best friend may not work the same way for you. If you lose a parent in your 60s or 70s, you may use the inheritance differently than if you lost them in your 20s or 30s. What you decide to do with your inheritance should be tailored to your unique needs. That can be difficult when you add family pressure into the mix.

People have opinions on many things: how you should dress, what you should eat, how you should spend your time, and the use of your inheritance is not immune from other’s scrutiny and opinions. You don’t have to take your great-aunt’s advice or the other heaps of non-solicited advice you receive from other family and friends. So many things change, especially tax law, so what worked for one person 10 years ago might not work now. Blend your inheritance into your plan so that it honors what you need while still preserving your family’s legacy. 

Plan your legacy

Receiving an inheritance can be an affecting experience, one that forces you to look at your own estate plan in a new light. You can take the experience you had and apply the things you liked and change the things you didn’t in your own estate plan. 

This foresight allows you to give your loved ones the opportunity to continue the legacy you built as well. It may not be easy to talk about estate planning, but by having these healthy conversations, you will be able to better prepare yourself and your loved ones.  

Inheritances are a wonderful gift, one that, if properly managed, can help you reach your financial goals. Remember, your priorities matter and you can use your inheritance in a way that benefits your financial plan while also continuing the legacy of those who came before you. It is all about using the tools you have to create the best strategy for you and your family. 

A strong financial plan can help you tell your side of the story and allow you the opportunity to continue to pass down the values, the legacy that came before. We are passionate about helping people live their legacy each and every day. Are you looking for a professional to help you with your financial management? 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 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.

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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The Best Volunteer Opportunities Near Macomb County, MI

What does giving back mean to you?

A few words that come to mind for us are compassion, selflessness, love, and empowerment. All of these ideas work together to help make someone else’s life better. Once we stop and realize that through all acts, big and small, we can choose how we treat people, we might become more energized to seek out ways to help others all around us.

Giving back is an important part of our lives. We can give back in so many ways every day through little things that we might not even realize: holding the door open for someone, sharing a meal, lending a hand, freely offering a smile. Giving back is a great way to embrace and enhance your community. 

While donating financial resources can be an important part of your giving strategy, donating your time, talents, and expertise holds equal weight. There are so many opportunities to get involved and volunteer right in your own backyard. Today, we wanted to share with our readers a few ways to get involved near Macomb County. 

Why volunteer?

Volunteering allows you to give your time to causes and organizations that mean the most to you. Volunteering is an interesting thing because it is both personal and communal at the same time. You can choose organizations that mean something to you and engage with your community to help bring that mission to life.

Volunteering provides a keen sense of purpose and fulfillment, things that are important during each phase of your life. You can volunteer by yourself or even include your friends and family, which can lead to deeper interpersonal connections while simultaneously strengthening the community at large. 

With so many different opportunities, you can find causes and programs that interest you and allow you to use your skills to the fullest. If you have a green thumb, you could seek out community beautification. If you are skilled with people, you could be a great fit for a tutor, companion, or other roles that allow you to interact with others. Perhaps you are a skilled builder or want to learn more about that trade, there are many places that require those services. Let’s take a look at a few different organizations around the area.

Where to volunteer

While there are many wonderful organizations in our area, we are going to highlight a few to help get you started. 

Macomb County Habitat For Humanity

Habitat For Humanity is a wonderful non-profit organization that seeks to build and repair homes for those in need. Always in need of volunteers, this organization is a great way for you to help bring comfort and warmth to a family in need. Habitat looks for volunteers year-round, so you can get a group together, put on some work boots, and help build a house.

Foster Closet of Michigan

Foster closet is a non-profit that provides clothing, toys, and supplies to children in the foster care system in Michigan. Many children who enter foster care don’t come with many (if any) personal items and through donations, Foster Closet is able to provide them with necessities to help rebuild their lives. Along with donated items, Foster Closet looks for volunteers to help sort and organize items at their locations as well as running events. 

Focus: Hope

Focus: Hope is an organization dedicated to the people of the community. Their mission statement really says it all, “recognizing the dignity and beauty of every person, we pledge intelligent and practical action to overcome racism, poverty, and injustice. And to build a metropolitan community where all people may live in freedom, harmony, trust, and affection.” There are so many ways to volunteer with this organization. Current openings are packing and delivering food boxes, assist senior shoppers, and working with young children in the early learning center. 

Play Place: Autism and Special Needs Center

Play Place is a unique, highly inclusive center that provides a fun and judgment-free space for children who have autism and other special needs. Combining recreation and education, Play Place combines social, occupational, and therapeutic resources for children. They seek to provide kids with development, independence, life skills, and more to assist them and their families. After going through their volunteer training, kind, compassionate, motivated volunteers are able to help in a myriad of ways from working in the Art Studio to the Lego Room to the Computer Cafe to welcoming all of the guests who visit.  

Humane Society of Macomb

For animal lovers, volunteering at the Humane Society is a great way to help animals in need. According to their website, with the help of volunteers, they are able to help nearly 2,000 animals per year. Volunteers provide exercise and enrichment for the animals while helping to find them good, stable homes.

Get started today

Making time to volunteer is not always an easy thing. We all have busy lives and different responsibilities that keep us moving. But by taking a step back, we realize that giving our time to those in need is one of the best ways to serve our community, our family, and our legacy. 

Giving back is a big part of your financial and lifestyle plan. Here at Legacy Wealth, we know that your financial life and personal life intersect in crucial, beautiful ways and we want to help you make the most of it. Schedule a 15-minute call with us today to learn more!

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