As we continue to grow and continue to be Loud, will always appreciate you for taking 5-10min of your day to read what I have to say, thank you!

This week I encourage you to focus on your plan not the plan of the media or others, your wealth is not their wealth!

What happens to your loved ones when you die?

This question occurs for 100% of parents, 100% of those with families and I would guess 100% of all people who care/love others. The question should be easy to answer, however it stands as one of those items that A LOT of people do not have.

Today we ensure you have some knowledge and get started, if you are a client or prospective client of mine, we have a new partner with wealth.com and all of your legacy/estate planning will not be included in our services! Cannot tell you how excited I am for this and will go into more detail on this later but this will save thousands with free updating no matter what state you move to!

What is an Estate Plan?

In essence, it's about documenting your wishes for times when you might not be able to manage your own affairs.

Nobody enjoys contemplating their own mortality. Yet, consider this: What will happen to your possessions—your money, family heirlooms, even your beloved pet—if something unexpected occurs? If you haven't laid out a plan detailing who should inherit what, and who should handle the associated paperwork and decisions, your loved ones could be left with the arduous task of figuring it out amongst themselves. Creating an estate plan isn't just about providing for your family's needs; it's also a way to ensure your desires are respected, sparing your loved ones additional distress during an already trying period.

While estate planning is crucial for ensuring your assets are distributed precisely as you wish, shockingly, only a third of U.S. adults possess a Will. This figure has been steadily declining in recent years. However, the COVID-19 pandemic prompted a 63% surge in Wills created by those aged 18 to 34 in 2021 compared to 2020.

So, what holds more people back from estate planning? Here are the five primary reasons:

1. Procrastination: "I just haven't gotten around to it."

2. Financial Concerns: "I don't have enough money saved."

3. Uncertainty: "I don't know how to begin."

4. Lack of Knowledge: "I don't know anything about it."

5. Perceived Insignificance: "I don't own anything valuable."

Regrettably, these misconceptions deter people from establishing even a basic plan. Estate planning is often seen as complex, intimidating, or irrelevant to many. The truth is, you don't need to be a millionaire or possess multiple properties to benefit from an estate plan.

You should consider an estate plan if:

• You worry about your pet(s) potentially ending up in a shelter.

• You want to leave a final gift to a loved one, friend, or charity.

• You have specific preferences regarding your healthcare and end-of-life care.

• You have strong opinions about who should manage your affairs if you can't.

• You want your children to inherit your assets after your spouse.

• Some family members might disagree on inheritance or decision-making.

• You don't want a particular family member involved in your affairs or receiving your assets.

• You own a significant amount of cryptocurrency.

What do I need to know to be organized?

Estate planning, at its core, is about preparing for a time when you might not be able to make decisions for yourself. It involves creating and signing critical legal documents, as well as making thoughtful decisions to ensure your hard-earned assets are passed on to your chosen beneficiaries.

At the heart of a basic estate plan are several key legal documents:

1. Last Will and Testament: This document outlines your posthumous wishes, including the distribution of your assets and the appointment of an executor to manage your financial affairs. It also designates guardians for minor children or those with special needs. While a revocable Trust can serve as a central component of your estate plan, it's essential to have a short Will (often termed a "pourover Will") to name an executor or guardian, as Trusts do not cover these roles.

2. Financial Power of Attorney: Think of this document as a permission slip that authorizes an appointed person (the "agent") to handle financial transactions, sign documents, and make legal decisions on your behalf. Depending on your state, you can specify whether this power is immediate or activated only in case of your incapacity. The authority granted by this document ends upon your death.

3. Advance Health Care Directive: This empowers a designated individual to make decisions concerning your medical treatment, symptom management, and end-of-life care. The document may take various names, such as a health care power of attorney or proxy, and often includes a living will detailing your healthcare preferences if you're unable to make decisions.

4. Trust: A Trust is established through a contract or agreement and functions as a container for your assets. The Trust agreement sets rules for the trustee overseeing the Trust, specifying their powers and the conditions under which assets can be distributed. After creating a Trust, you can transfer assets into it during your lifetime. Among various Trust types, a "revocable Trust" or "living Trust" is common in estate planning, enabling you to act as the initial trustee. You can also designate a successor trustee to manage your affairs when you can no longer do so. Unlike a Will, a Trust becomes active upon creation, allowing the successor trustee to assist with managing Trust assets in the event of your incapacity.

There are two primary Trust categories:

• Revocable or Living Trusts: These can be altered at any time by the creator (you) and are often used as Will substitutes in estate planning.

• Irrevocable Trusts: Once established, they are challenging and expensive to modify. They serve various purposes, such as tax minimization, creditor protection, managing property for minors, and preserving assets within a family. Your Will or revocable Trust can instruct your executor or trustee to create an irrevocable Trust to leverage its advantages.
  

The Why Behind Estate Planning

Some may question the need for estate planning, but it can provide invaluable clarity and structure, sparing your loved ones from confusion, disputes, and delays in asset distribution. Without a clear plan, your state's succession laws will dictate asset distribution, which may not align with your intentions, family dynamics, or cultural heritage.

Even if your assets pass outside your estate due to specific titles or beneficiary designations (e.g., jointly owned property, life insurance policies, or retirement accounts), having a Will or Trust remains crucial. These legal documents allow you to direct assets not covered by other means, handle final expenses, and address assets exclusively within your estate.

Key Players in Your Estate Plan

In building your estate plan, the central figure is you—the creator of the Will (testator) or Trust (grantor, settlor, or trustor, distinct from the trustee). By carefully considering and documenting your final wishes through legal instruments, you establish a clear framework for the management of your finances and property posthumously.

Other essential roles in estate planning include:

• Beneficiaries: These individuals or organizations inherit your assets as designated in your Will or Trust. Assets can encompass cash, real estate, cherished heirlooms, or other possessions.

• Heirs: If you lack an estate plan, your heirs are determined by state succession laws and may not align with your preferences. They inherit your assets in the absence of designated beneficiaries.

• Executor: Named in your Will, this person manages your affairs after your passing. They gather your assets, settle debts, pay taxes, and distribute property according to your Will's terms.

• Trustee: In Trust-based estate plans, the trustee takes on responsibilities similar to an executor. This role is often assigned to the same person. If you fund your Trust during your lifetime, the trustee can manage Trust assets in case of your incapacity.

• Agent or Attorney-in-Fact: This individual, designated in your financial or health care power of attorney, acts on your behalf in making decisions or executing tasks.

• Guardian: If you have minor children or those with special needs, the guardian is the person you appoint to care for their well-being in the event you and the other parent cannot.

While a lawyer can be part of the process, many individuals can create and manage their estate plans using online tools, backed by extensive legal expertise, such as Wealth. In essence, estate planning involves careful consideration and documentation of your final wishes, coupled with the appointment of trusted individuals to execute these directives upon your passing. It's a thoughtful act that safeguards your family and preserves your legacy.

Next Week’s Issue

INVESTMENTS, INVESTMENTS, INVESTMENTS!!! How we stay organized with all the different “investment" accounts.

Hottest Tweet of the Week….

#NoBSWealth Clip of The Week

Cannot wait until next week or just want more, check out our podcast @nobswealth and catch us on Youtube. You can always follow me on Instagram and Twitter as well! Or just email me, [email protected].

Most importantly come check out our Website and give us some feedback. Make sure to subscribe to this newsletter and if you are wanting time to chat with me 1on1 you can schedule that here!