In general, people often avoid estate planning. We assume it’s something just for the ultrawealthy and get uncomfortable thinking about our mortality. In an effort to be proactive about our finances, some of us make a will and assume everything is taken care of.
Little do we know that every state already has an estate plan for us. And those who wrote their own will go through the same legal process as those who didn’t. This means that even if you clearly state what you want, your will still goes to probate and a court ultimately makes decisions about your children and assets.
This legal limbo can last six months to several years, racking up fees that can take away between 5% and 15% of your assets, first coming out of your family’s own pockets.
Financial educator Car Nofuente sees this happen all too often.
For practice owners, the unavoidable months of legal limbo mean that no one can legally take ownership of a practice until the court grants authority to the estate’s heirs.
Nofuente often advises his clients to avoid the probate process altogether by setting up a trust.
Even for those of us that know how to manage our finances and produce a stable income, navigating financial document arrangement can be tricky. Certified financial education advocates like Nofuente work to fill in these gaps.
In the video below, Nofuente reveals some eye-opening concerns about will-based estate planning and its many limitations. For instance, even if you’ve appointed a person to take over guardianship of your children in case of emergencies, the court ultimately has the power to choose the guardian, regardless of what you will. Wills also lack protection from money-seeking entities and the bending of your stipulations.
Meanwhile, opening trust allows you to protect yourself, because it is governed by your nearly unbreakable stipulations and a bundle of legal documents, doing what most of us imagine a will does, minus the long wait.
When it comes to our big-picture finances, we need to be better prepared. This goes not just for our asset distribution, but also for our children’s college funding plan.
In the video below, Nofuente discusses his way of backtracking from his children’s future professions to cater to the experiences and opportunities that fit particular merit scholarships and programs, regardless of financial need.
Are you ready to start taking responsibility for your long-term assets? The perfect Nifty Thrifty deal awaits below.
Learn more about:
- The little known disadvantages of only having a will
- Key advantages a trust offers for practice owners and parents
And for the Nifty Deal…
- FREE Consultation for any interested members. Just contact Carl Nofuente by phone or through personal email.
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