It’s not something we like to think about. Yet, as we progress from our carefree days as a college student to our first job, to marriage, to home ownership and possibly having children, the inevitable happens. We feel an overwhelming sense of responsibility — an inherent need to protect our loved ones. Should the unexpected occur, is it really necessary to have a will?
In our continuing series on Biggest Financial Planning Mistakes that people make, this week we focus on Mistake #3.
Mistake #3: Being Unprepared: Wills & Trusts
According to Douglass Financial Services, not having a will or trust can create big problems, regardless of the size of your assets. “From my experience, the reason families don’t articulate their plan is because they don’t think it will happen to them, or they have trouble making these important decisions, so they don’t make any decisions at all,” says CERTIFIED FINANCIAL PLANNER™ Cullen Douglass of Douglass Financial Services.
Whether you are single or married, or whether you are with or without children, having an estate plan can help you:
- Minimize estate taxes and court costs.
- Transfer assets to the beneficiaries of your choice.
- Make provisions for the appointment of a guardian for your minor children.
Without proper planning, your heirs may end up with far less than you intended. An important element to consider in estate planning is what factors could decrease the size of your estate. At death, estate taxes as well as any outstanding debts and other expenses you may have can contribute to estate shrinkage. An estate plan can help ensure that you have enough available cash to cover these costs so your heirs won’t need to liquidate assets to pay them.
Furthermore, an estate plan can help guarantee that property, personal items and assets are divided according to your wishes. Strategies to help achieve this include utilizing wills, trusts and establishing charitable giving programs.
“Without deliberately sitting down and thoughtfully thinking about your family and making the proper decisions, the State of Tennessee will determine who, how and when your money and possessions will be distributed,” warns Douglass.
In order to ensure your financial security for the long-term, begin now with the proper information and expert advice – from a CERTIFIED FINANCIAL PLANNER™. Cullen Douglass, CFP® and his team of professionals at Douglass Financial Services in Cool Springs has more than 60 years of combined industry experience.
Cullen Douglass, CFP® is a Wealth Management Advisor who focuses on complete planning including risk management, investments, estate planning, retirement planning and insurance. Douglass Financial specializes in comprehensive integrated financial planning, including:
• Personalized Financial Planning
• Investment Advisory; Products & Services
• Trust Services
• Wealth Protection & Risk Management
Just moved to Tennessee? Don’t delay in learning about Tennessee’s unique state laws. It’s not worth putting your spouse or children at risk. Cullen Douglass, CFP® & Douglass Financial Services can help you successfully navigate what can be murky waters.
Whatever your situation, if you have ten minutes, give Cullen Douglass, CFP® a call and take the first step in securing your family’s financial future. Douglass Financial Services is a division of Northwestern Mutual.
Click here to learn more about Cullen Douglass, CFP® and Douglass Financial Services.
To view our last article, Mistake #2: Spouse Is In The Dark, click here.
Check with us next week when we discuss Mistake #4 in Biggest Financial Planning Mistakes.
