By Jay Shareef and Chris Rhoads
Often, when we consider leaving an inheritance for our kids, we primarily think about making a will and sharing our money. But creating a legacy involves more than just finances. Will the gift you leave create a sense of safety and stability over the years, or will it turn into a confusing mix of assets, debts, and complicated paperwork that takes forever to sort out?
If you’re thinking of passing an inheritance to your children, it’s crucial to make the handover as seamless as possible. When your loved ones are processing their grief and making difficult decisions, you don’t want them dealing with the extra stress of a complex inheritance process. At WealthFlow Financial, our comprehensive legacy and estate planning can simplify this transition, making it smooth and simple for all involved. Read on to understand how.
The Importance of Estate Planning
Estate planning should be an integral part of your financial and retirement planning. Failing to have an estate plan may not have a significant impact on your own life, but it will undoubtedly affect the lives of your loved ones after you’re gone.
In the absence of an estate plan, your death will be considered intestate, which means there was no valid will in place at the time of your death. The state in which you lived will determine who inherits your property through a process called probate, which can take anywhere from 6-9 months or even several years without proper planning.
In addition to this process lasting a long time, your inheritors may face expensive fees, predatory claimants, and loss of control over what happens to your estate. Probate can cost up to 3-7% of your total estate value. And because this process becomes public information, this means that greedy creditors or estranged relatives may attempt to claim portions of your wealth.
Good estate planning mitigates these risks and provides your family with a solid plan for how your wealth will be transferred. The professionals in your life, such as your estate planning attorney and financial advisor, can become trusted resources for your family to lean on during this difficult transition.
Create a Lasting Legacy
Additionally, good estate planning incorporates legacy planning, which can be even more beneficial to your inheritors. Legacy planning allows you to incorporate family or financial values into your wealth transfer. If your children aren’t as adept at money management or have made financial mistakes in the past, your legacy planning can help guide them through what to do with their new wealth. Finally, legacy planning may help to protect your grandchildren and encourage generational wealth-building for decades to come.
Set Your Loved Ones Up for Success
Have you considered the legacy and inheritance you’re leaving for your children? If not, there’s no better time than now. Recent years have highlighted the unpredictable nature of life, leaving us lessons on the importance of planning ahead. Despite how we might feel about the idea of our own eventual passing, taking the time to prepare for the future provides ease and peace to the ones who love us the most.
Rather than leaving your family in confusion about your assets, leave them a legacy that enhances their lives and those of future generations. At WealthFlow Financial, our team is committed to supporting, educating, and offering informed guidance to each of our clients. Partnering with us allows you to benefit from our years of knowledge and experience, gaining confidence that someone is looking out for you and your family.
If you’re seeking a financial planner who can listen to your unique needs while guiding you to empowered financial decisions, reach out to us at (301) 798-5250 or schedule a phone call now.
About Jay
Jay Shareef is vice president, financial advisor, federal benefits consultant, and co-founder at WealthFlow Financial. As a U.S. Army veteran, Jay is passionate about helping federal employees create a bulletproof plan for retirement and navigate the often confusing and complicated federal benefits landscape. He spends his days educating and providing clients with unbiased insurance benefits and retirement strategies to help his clients create guaranteed income for life. As a problem-solver and trustworthy resource, Jay always puts his clients and their needs first so they can find financial peace of mind. To learn more about Jay, connect with him on LinkedIn.
About Chris
Chris Rhoads is a co-founder and vice president of WealthFlow Financial. As a registered investment advisor and independent financial professional, Chris is committed to helping his clients in retirement and he takes a holistic approach to financial planning that includes insurance and risk management, investments and wealth management, retirement income planning, and estate and tax planning. Chris has been married to his wife, Tia, since 2009 and they live in Frederick, MD, together with their two young daughters. In his free time, Chris enjoys traveling, watching sports, and being active in causes about which he cares passionately. To learn more about Chris, connect with him on LinkedIn.