In an earlier post, I talked about women and money – and our sometimes problematic relationship with it, and asked Ivy Menchel to share some of the basics about financial management; a good place to start. Here’s Part 2, on estate planning.
Financially Savvy Women: Part 2
Investing and Saving
By Ivy H. Menchel
In conjunction with Sagemark Consulting
(a division of Lincoln Financial Advisors, a registered investment advisor)*
Estate Planning — A Vital Component
You probably already have the fundamentals of your estate plan taken care of: a will, a living will, and a health-care power of attorney. But, if you have considerable assets, you need a detailed, comprehensive plan to help control estate taxes and preserve your wealth for your heirs.
One way to reduce your taxable estate is to make gifts of cash to family and friends during your lifetime. Making charitable gifts, either during your lifetime or in your will, can also help reduce estate taxes. If you make charitable gifts during your lifetime — through a charitable remainder trust or a family foundation — the tax benefits are twofold: You receive a current income-tax deduction and your estate’s tax burden will be reduced later.
To help preserve your wealth and provide for your heirs, consider establishing a testamentary trust in your will. Placing assets in a trust will allow them to be professionally managed after your death according to your wishes.
Insurance may also play a key role in your estate plan. If you’re a business owner, having a business succession plan in place is essential. Funding a buy/sell agreement with life insurance guarantees a smooth transition if you suddenly die or are unable to continue working. Having long-term care insurance and disability income insurance coverage can help ensure that your assets remain intact for your heirs should you become permanently disabled.
Financial planning is a complex process. The approaches mentioned here provide an overview of the options available to you. Your financial advisor can suggest a variety of strategies for preserving, protecting and enhancing your wealth.
Any discussion pertaining to taxes in this communication may be part of a promotion or marketing effort. As provided for in government regulations, advice related to federal taxes that is contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.
Ivy H Menchel, CFP®, CDFA™* is a registered representative of Lincoln Financial Advisors, a broker/dealer, member SIPC, and offers investment advisory services through Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor,1359 Broadway – Suite 820, New York, NY 10018, 646.532.3959, ivy.menchel@LFG.com. Insurance offered through Lincoln affiliates and other fine companies. This information should not be construed as legal or tax advice. You may want to consult a tax advisor regarding this information as it relates to your personal circumstances.
*Divorce financial analysis not offered through Sagemark Consulting.