Welcome to Retirement Readiness, the podcast that helps you navigate the path to a secure and fulfilling retirement. In this episode, join hosts Tim Regan and Katie Umland of PrairieView Wealth Partners as they unravel the complexities of estate planning and its vital role in your retirement strategy.
Picture this: retirement is on the horizon, and you’ve diligently saved and invested over the years. But have you considered what happens to your hard-earned assets when you’re no longer here?
Estate planning is the key to ensuring your wishes are carried out even after you’re gone. And contrary to popular belief, it’s not just for the ultra-wealthy!
Here’s a sneak peek at what you can expect from this episode:
- We debunk the myth that estate planning is only for the wealthy, clarifying that it’s an essential aspect of financial planning for everyone.
- You’ll learn about the key documents that make up an estate plan, including wills, trusts and powers of attorney.
- We explore why a large, lump-sum inheritance for your children might not be the best option for everyone.
From selecting the right professionals to reviewing and updating your plan as life circumstances change, Tim and Katie offer actionable steps to help you on your estate planning journey. Listen to the full episode to learn more – and if you’re looking for more retirement planning tips, feel free to check out our other episodes here.
Key Timestamps
- 00:03:14 – Tim explains the role of trusts in estate planning and how they help distribute assets.
- 00:05:23 – Estate planning can seem overwhelming, but with a methodical approach, clients can make informed decisions in a 45-minute to 1-hour long session.
- 00:09:16 – The hosts discuss the potential downsides of leaving all of your assets to your children at once, including the risk of the money being spent quickly and not fulfilling your intended legacy.
- 00:12:32 – Trusts can be set up to benefit young children, with a trustee overseeing the use of the money for their benefit until they reach a certain age.
- 00:13:42 – Tim and Katie discuss the importance of legacy planning for your children. They talk about creating trust funds and how they can provide flexibility for your children while also ensuring that they receive the money when they are more responsible.
- 00:14:30 – Tim and Katie explain how leaving retirement accounts to your children can result in them paying income tax on the inheritance. They also provide an example of how leaving money to a church through a retirement account can be more tax-efficient.
- 00:17:44 – The hosts discuss the importance of knowing what you don’t know when it comes to legacy planning.
Key Takeaways
- Estate planning is for more than just wealthy individuals with large properties. An estate encompasses all of a person’s assets and decisions regarding their distribution, including when they are alive but unable to make decisions for themselves.
- Trusts play a crucial role in estate planning by designating someone to make decisions on behalf of the individual and ensuring the assets are distributed according to their wishes.
- Estate planning should consider the long-term impact and legacy, including the possibility of generational wealth and providing for grandchildren’s education and other needs. Trusts can be structured to provide support while the beneficiaries are young and gradually distribute the assets as they reach certain ages or milestones.
Links
Prepare for the Future with Confidence
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Estate Planning Disclosures:
Investment advisory services offered through Thrivent Advisor Network, LLC., (herein referred to as “Thrivent”), a registered investment adviser. Clients will separately engage an unaffiliated broker-dealer or custodian to safeguard their investment advisory assets. Review the Thrivent Advisor Network Client Relationship Summary, Financial Planning and Consulting Services, Investment Management Services (Non-Wrap) and Wrap-Fee Program brochures for a full description of services, fees and expenses, available at Thriventadvisornetwork.com. Thrivent Advisor Network, LLC’s Advisory Persons may also be registered representatives of a broker-dealer to offer securities products.
Advisory Persons of Thrivent provide advisory services under a “doing business as” name or may have their own legal business entities. However, advisory services are engaged exclusively through Thrivent Advisor Network, LLC, a registered investment adviser.
This Report does not provide legal, tax, or accounting advice. Before making decisions with legal, tax, or accounting ramifications, you should consult appropriate professionals for advice that is specific to your situation. Advisor is not a licensed attorney and legal advice is not part of any engagement for financial planning or estate planning services.
