4 Reasons Estate Planning is the Best Gift of All

4 Reasons Estate Planning is the Best Gift of All

It's true! Estate planning really is the best gift and here I'll discuss four reasons why. Now I know what you may be thinking, "here he is again, that estate planning attorney from Castle Rock, telling me about the benefits of estate planning"! And you know, you're right, but not for the reasons you think. You see, estate planning is not only beneficial, but is a gift to your family that is so significant, that all other gifts combined pale in comparison. Let's see why.

Four reasons that estate planning is the best gift of all:

1. Estate planning never stops giving.

One feature of an estate plan is that it never stops giving--it never stops protecting you, your family and your loved ones along with your assets and property. While you want to keep your plan current and update it due to changing family circumstances or needs, it is always there. More on that part below.

2. Your estate plan is the best way to protect yourself.

As I have discussed in prior articles, one important purpose of your estate plan is to protect you in the event of unplanned illness, disability or death. Since your estate plan protects you against these risks, it makes your estate plan one of the best, if not the best way to protect yourself. This is done with Powers of Attorney and medical directives and Living Wills.

3. Your estate plan is the best way to protect your family.

Our families rely on us for all sorts of things. In fact, for many families, it is not possible to even list all of the things that we are relied on to provide. Financial support, emotional support and others are the just the beginning of the ways you support your family. When you create your estate plan, you can provide this support to your family when they most need it---when you are not available! Nothing else can provide this protection to your family.

Your estate plan does this with Wills, Trusts and other estate planning arrangements.

4. Your estate plan allows you to control the future.

Yes, it's true, your estate plan can control the future. The truth is, the future is uncertain and no one can know what it will bring. What your estate plan can do is allow you to control the outcome of events in the future that are difficult to predict or project. For example, we don't know if an unplanned near-term disability is in our future. But if it does happen, your estate plan can control how you are treated and cared for. Your estate plan is the only way that the outcomes of an uncertain future can be controlled.

No other gift provides these four benefits which is why I am suggesting that estate planning is the best gift of all.

What do you think? Please join our conversation and share your thoughts on this topic. Thank you.

Bernie Greenberg

Three Things to Know About Which Comes First: Financial Planning or Estate Planning?

Which Comes First, Your Financial Plan or Your Estate Plan? Here are the three reasons you MUST do your estate plan first.

I am asked frequently, which comes first, a client's financial plan, or estate plan? How an advisor answers this question will tell you much about whether their priorities are aligned with yours or not.

Here are the three things you need to know to answer this question and properly protect yourself, your family and your property.

1. Financial Planning Requires Time.

Financial planning is important to your financial success. However, for any financial plan to work there is a vital requirement: time and lots of it. Financial planning is a process of goal setting, asset alignment coupled with savings and investment--over time. Here's one example:

Say you want to ensure a child can go to college. Your financial planner will assist you in establishing a plan that will involve savings and investment so that by college age, the college fund will either pay for or assist in college related expenses. The critical element in the plan is time. There will be insufficient funds the first few years of the plan to pay for college. You can see the same applies to goals like retirement. If the time horizon is not realized the plan fails. This is the reason that life insurance is an estate planning tool before it is used in a financial plan. More on that thought below.

2. Protect Against the Worst Risk First.

The worst risk any client faces is dying or becoming disabled too soon. In other words, a near-term event that is unplanned. Unlike the financial planning time horizon, the worst risk can happen any time. A main reason to do your estate plan is to protect against the worst risk--an unplanned death or disability. Since this is an unplanned event, protecting against such risk is priority ONE.

3. Estate Planning Has No Time Requirement.

There is no time required for your estate plan to work. Your estate plan must take into account the unplanned and near-terms risks mentioned above. I can tell you that most clients who live to life expectancy do not die with their original estate plan. A client's estate plan will be revised several times over the course of their life. This is the beauty and necessity of the estate plan. It requires no time, no specific course of events in order to operate, unlike a financial plan. As mentioned above, this is why life insurance is part of estate planning before it is considered in the financial plan--we can protect against an unplanned, near-term death with life insurance.

Those are the three reasons that your estate plan comes before your financial plan. Both are important and you should pursue both. Start with your estate planning to protect against the worst risk first and then start your financial plan.

Let me know your thoughts on this important estate planning issue, your comments and questions are welcome. Feel free to email me at: bgreenberg@kgattys.com or call me any time at: 303-688-3535. Thank you.

Bernie Greenberg