“Today’s young adults will find it harder to accumulate wealth of their own than previous generations did, due to the sharp fall in home ownership for that group, the dramatic decline of defined benefit pensions in the private sector and the stagnation in their incomes,” says Andrew Hood, senior research economist at the Institute of Financial Studies. Hood and his team released a report describing the immense challenges for Generation Z given the current state of income inequality and economic instability. We, at the SACC, decided to take a closer look at how we can be sure the millennial generation here in Sacramento with our partners over at SAFE Credit Union can thrive with the benefits of inherited assets. Here’s 5 tips to secure your loved one’s future!
SACRAMENTO ESTATE PLANNING
TIP #1: FIND YOUR WILL, OR WRITE ONE
A will is crucial to your estate plan. If you don’t have one yet, jot down some ideas you have until you’re ready to put it all together. Outline what you want to pass down and who you want to pass it to. If you don’t have a will in place, you are no longer in control of how everything is distributed. A key part of estate planning is formulating this will and speaking to your attorney or financial planner about your goals for those who you’re leaving behind.
TIP #2 LIST OUT YOUR LOVED ONES
While the experts at SAFE CU and your lawyer’s office may know how to file all the paperwork, only you can evaluate all the people you want to benefit in the planning of your estate to figure out who needs what. List out all your loved ones, their birthdays, and notes on what you think they would benefit the most from. The experts you work with will suggest more concrete ideas when you bring this list to them.
TIP #3 CONSIDER A TRUST
Trusts are a great way to ensure an easy transference of property between yourself and your beneficiaries. It avoids probate, easing the process, and speeding it up too. You can define specific terms to trusts regarding who and when they will receive these assets as well as who will manage them. You can also, establish a revocable trust so that the trust assets remain accessible to you during your lifetime while designating to whom the remaining assets will pass thereafter, even when the situation is a bit complex, like children from multiple marriages. If done well, a trust can protect these assets from your beneficiaries creditors and debt collectors, ensuring that they will receive all that you set aside for them.
TIP #4 NOMINATE GUARDIANS AND PROVIDE FOR MINOR CHILDREN
Figure out who you trust to take care of who you love. Establishing guardianship is a great way to assure your child’s safety and well-being. Our friend down at Affinity Trusts, Natalie Spiwak, trust and estate planning expert here in Sacramento, stressed the importance of this step, regardless how painful or awkward it may be. Always have a plan B!
TIP #5 ASK US QUESTIONS
Join us, March 21, 2018 at SAFE CU Headquarters in Folsom to hear from Natalie Spiwak regarding the steps to living trust and estate planning. Our team, and hers, will be spending the afternoon breaking down the challenges, benefits, and specifics of planning now. If this article posed any questions for you, join us for free if you’re a member, or just $10 if you’re not, to discuss the importance of estate planning and protecting your wealth for generations to come.
Natalie Spiwak is the Founder and President of Affinity Trusts. Affinity Trusts aligns with the leading California estate planning law firm, Citadel Law Corporation, to offer SAFE Federal Credit Union members assistance with Living Trusts, Wills, Durable Powers of Attorney, Health Care Directives, and more advanced estate planning. Natalie has been educating members of Credit Unions about the importance of protecting and transferring their wealth quickly, privately and cost-effectively for over a decade. She is committed to providing her clients with exceptional, yet affordable, estate planning documents and the entire Affinity Trusts team, sincerely care about all of their clients and pride themselves on going “the extra mile” to ensure client satisfaction. Natalie is a Certified Citadel Estate Planner and a California Notary Public.