Change is the only constant we can truly count on. Our lives are ever evolving – full of gains and losses, opportunities and setbacks.
When it comes to your estate plan, complicated laws, taxes and insurance requirements can put your legacy at risk without intentional periodic review with your financial planner. Calvert Investment Counsel works closely with you, your estate attorney and accountant to provide comprehensive protection and wealth management by defining objectives prior to preparing legal contracts as well as updating your estate plan as life circumstances change throughout the years.
As time brings various seasons to our lives, be sure to review and update your estate financial plans when you and your family experience these 5 life-changing events.
- Birth or Death
Whenever a child is born or adopted into your family you’ll want to list them as a beneficiary on your retirement and investment accounts as well as insurance policies. The titles listed in those documents hold precedence over your will. Likewise, if you should outlive your primary beneficiary, usually your spouse, you need to provide a contingent beneficiary or update your plan with the new beneficiary that is to inherit your estate to avoid unnecessary probate costs and tax complications.
- Changes in Marital Status
In the event of divorce or new marriage you’ll want remove and ex-spouse from your accounts and legal documents as well as provide for your new beneficiaries. Neglecting to update this information could leave your estate in the hands people you no longer want included in your legacy and exclude others such as future children or those blended into your family from a second marriage.
- Increase or Decrease in Financial Status
Should you inherit substantial assets, be awarded from a lawsuit, or win the lottery substantially increasing your net worth, you will want to seek council as to how this affects your current investment and retirement plans as well as options to minimize tax liabilities on both state and federal levels. These types of gains might also change how you’d like your estate distributed upon your death and/or the need for new or updated trusts to protect those assets. Also, restructuring your plan to make allowances for a set back of significant decrease in financial status is important to keep you on track for reaching retirement goals.
- Purchase or Sale of a Business
Acquiring or selling a business can have huge tax implications as well as affect your financial status. You may need to create a succession plan designating the person or people you wish to leave your business to, who is to operate it, and plan for the tax events that might occur after your death. The capital you receive from selling your business will also affect your investment plans well as insurance needs and taxes.
- Changes in Health
Disability of a child or spouse will require careful planning of your resources. Receiving government disability benefits or Medicaid could be affected by income received from a trust. In addition, long term health insurance needs may be required. If you become ill or disabled, your ability to work may be affected and require a change to your estate and investment plans if you are forced into early retirement or long-term disability.
So, What’s Your Next Step:
Call us today at 410-435-3270 or click here to schedule your consultation for estate planning that protects your future and legacy.