Estate Planning is for all Investors | Millionaire Corner

Wealthy investors are more likely to worry about the legacy they leave to future generations, but no investor can afford to overlook the issues surrounding estate planning, according to financial experts.

?Many people wrongly assume that estate planning is only for the wealthy,? consumer advocate Eleanor Blayney said in a statement issued by the Certified Financial Planner Board of Standards, Inc. ?The reality, however, is that everyone needs a plan.?

Estate planning helps provide for dependent children, manage and distribute assets and direct health care, Blayney, a certified financial planner, said. Yet, Millionaire Corner research shows that only the wealthiest investors are likely to have discussed estate planning with a financial professional, or created an estate plan. Ninety-four percent of high net worth millionaires ? those with $5 million to $25 million in investable assets ? have created a will, compared to 72 percent of investors with $100,000 up to $1 million to invest.

The current uncertainty surrounding estate tax laws is prompting one-third of Millionaires to contact their attorneys to review their estate plans, according to our monthly survey for November. Non-millionaires are significantly less likely to address estate planning issues, despite a changing tax environment. Only 8 percent of investors with less than $100,000 in investable assets plan to re-evaluate their estate plans, according to our survey.

Regardless of wealth level, all investors should consider the legacy they want to leave others and take steps to protect their assets from probate fees and taxes, Blayney said. To start the process, she recommends:

1.?????? Define your estate. Inventory your financial assets, real property, and intangibles, such as a patent or copyright. What is their total financial value? How are the assets titled? Is their a beneficiary designation association with each asset?

2.?????? Who do you want to receive these assets in the event of your death? Are the intended beneficiares ready or able to manage these assets? Do you need a strategy to successfully transfer these assets?

3.?????? Consider using life and disability insurance to create an estate if you have nothing else to leave dependents. An irrevocable life insurance trust, or ILIT, can help shield the insurance payouts from taxes under current IRS rules.

Source: http://www.millionairecorner.com/article/estate-planning-all-investors

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