E8.Help-I've Fallen And My Portfolio Can't Get Up

Coincidentally, we both were working on finalizing our Living Trusts, Wills, and Financial Planning at the time of this episode.

In this episode, Help—I’ve Fallen and My Portfolio Can’t Get Up, Don and Gary explain why waiting to plan your finances is like ignoring a smoke alarm because you're 'almost done with this nap.' Wills, trusts, and planning ahead—because your money shouldn't be as unprepared as your hip."

Don and Gary say: don’t wait until your knee gives out and your portfolio does too. Wills, trusts, and planning now—because financial CPR isn’t a real thing.

Legal Zoom

https://www.legalzoom.com/articles/when-to-make-a-living-trust

Senior Living. org

https://www.seniorliving.org/finance/estate-planning/trusts/

USA Today-Why fewer older Americans are writing wills and planning estates

https://www.usatoday.com/story/money/personalfinance/2023/10/03/fewer-older-americans-are-writing-wills-planning-estates/70994383007/

Senior Lifestyle-A Beginners Guide to Financial Planning

https://www.seniorlifestyle.com/resources/blog/financial-planning-for-seniors/

Here's a breakdown of why a living trust might be beneficial:

1. Avoiding Probate:

• A living trust can help your estate bypass probate, a court-supervised legal process for validating a will and distributing assets.

• Probate can be time-consuming, costly, and public, potentially delaying asset distribution to your beneficiaries.

• Assets held in a properly funded living trust can be transferred to your beneficiaries more quickly and efficiently, without court intervention. 

2. Managing Assets During Incapacity:

• A living trust allows you to name a successor trustee to manage your assets if you become incapacitated, ensuring your financial affairs are handled according to your wishes.

• This can prevent the need for court-appointed conservatorship or guardianship, which can be complex and costly. 

3. Maintaining Privacy:

• Unlike a will, which becomes a public record after probate, a living trust can help keep your estate details private.

• The terms of the trust and the identity of your beneficiaries remain confidential. 

4. Providing Flexibility and Control:

• With a revocable living trust, you can modify or revoke the trust at any time during your lifetime, allowing you to adapt to changing circumstances.

• You can act as your own trustee and maintain control over your assets as long as you're capable. 

5. Planning for Specific Needs:

• A living trust can be tailored to address specific needs, such as providing for minor beneficiaries or setting up trusts within the main trust. 

However, it's important to note that a living trust might not be suitable for everyone. 

Potential disadvantages to consider:

• Cost: Setting up and maintaining a living trust can be more expensive than a will.

• Complexity: Transferring assets into the trust and managing it can be more complex than with a will.

• No Tax Advantages: Revocable living trusts generally don't offer significant tax benefits during your lifetime. 

Recommendation:

It's best to consult with an estate planning attorney to determine if a living trust is appropriate for your specific circumstances, goals, and the complexity of your estate.