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THE DEBTOR
Charges add to debt load - accruing interest, increasing debt loads, and expanding the gap from wealth accumulation.
The Debtor is Overleveraged.
Save/Spend resets wealth. The opportunity cost of deploying cash leads to suboptimal accumulation of wealth.
The Saver is Underleveraged.
The Wealth Battler is Properly Leveraged.
There are a ton of questions around Estate Planning in the USA that normally you'd have to pay a lawyer big bucks to answer.
What happens to my stuff when I 💀?
What is Estate Planning?
What is Probate?
How do wills and trusts differ?
What the heck is a revocable living trust?
Watch the free webinar on this page or read on.
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Why have an estate plan?
Estate planning is a way to ensure your assets are distributed according to your wishes after you die or become incapacitated and that your loved ones won't be faced with complications or conflicts.
Estates commonly include:
Revocable Trust
Last Will and Testament
Financial Powers of Attorney
Healthcare Powers of Attorney
What is probate?
the legal procedure where assets are formally passed to beneficiaries after death.
It is:
time-consuming
delays passing your assets
very expensive
public record
And most importantly....
completely avoidable
Goal for your assets: avoid probate
What about wills?
Believe it or not....
You HAVE a will now!
It was drafted for you at birth by the State.
If YOU would like choose what happens to your things upon death or incapacitation, and not leave it up to the state, continue on...
Your Will
A Last Will & Testament is a legal document that outlines the wishes for the administration and division of an estate after passing.
It can also serve to assign legal guardianship over minors and wishes for pets.
A Will does not avoid probate.
Assets owned in a deceased person's name with no named beneficiary are no longer accessible once the asset owner dies. A petition must be filed with the probate court to move forward. Insert delays, fees, and permission from the courts.
So how do we avoid probate and get our stuff to who we want to when we die??
Enter the TRUST.
Revocable Living Trust
legally binding instrument that allows a third party, or trustee, to hold assets on behalf of a beneficiary.
It is a legal document used for avoiding probate
and minimizing estate taxes.
Assets owned in the name of a Trust are immediately accessible to the trust maker's designated successor.
A Trust also provides:
Privacy
Creditor Protection
Special Needs Protection
Potentially Reduced Estate Taxes
Assets for Minor Children
Special Provisions
Power of Attorney is very important if you are unable to act on your own behalf. Choose who you want to make important decisions in your life on your behalf.
There are two major flavors of Power of Attorney
Financial and Healthcare
Financial Power of Attorney
Potential responsibilities:
pay bills
make investment decisions
conduct real estate transactions
file taxes
other financial management needs
The financial power of attorney may be compensated
Note: Your agent acting under a power of attorney has no control over decisions involving assets owned by your trust.
The trustee of your trust manages assets owned by the trust. Your agent does not have testamentary powers either. They cannot sign new documents into being on your behalf, nor make changes to your qualified accounts.
Healthcare Power of Attorney
Responsible for making healthcare decisions for you if you become unable to do so yourself.
State laws vary regarding the specific allowances for a healthcare power of attorney.
Generally they can agree to, refuse, or withdraw treatment on your behalf.
Communicate your wishes clearly to this trusted person and consider including details about your medial wishes in your final letter of instruction.
Ready to take control of your estate?
Avoid probate
Prevent delays
Keep your privacy
Don't pay unnecessary fees
Choose who gets what from your estate
Opportunity Funds are crucial to financial resilience. Without a reserve to draw upon, you are vulnerable to the next wave of chaos brought in by life.
~ Attributed to Albert Einstein