I
A Little
Planning
Can Make
A Big
Difference
t is never an easy moment when we learn
someone dear to us has passed away. The
profound feeling of unrecoverable loss is
coupled with a sense of confusion and anxiety
about how best to move forward. So how
do we reduce the burden on our family that
survives us? The answer: A little bit of forward
planning can go a long way.
Not just for the wealthy, basic estate planning
is important for individuals with a wide range
of fi nancial situations. In fact, it may be more
important if you have a smaller estate because
the fi nal expenses will have a much greater
impact on what your heirs receive. Wasting
even a single asset may cause your loved ones
to suffer from a lack of fi nancial resources.
HERE ARE A FEW QUESTIONS
TO ASK YOURSELF:
Do I have a will?
A will is a legal document that lets you state
how you want your property distributed after
you die, who shall administer your estate, and
who will care for your minor children. This is
probably the most important tool available to
you. Anyone with property or minor children
should have a will that is kept up to date.
By Daniel T. Newquist,
CFP®, AIF®
Do I have a Trust?
Dan Newquist, CFP®, AIF®,
Principal & Senior Wealth
Advisor with RNP Advisory
Services, Inc., a registered
investment advisor, Morgan
Hill. He can be reached at
408-779-0699 or dnewquist@
RNPadvisory.com. Securities
offered through Foothill
Securities, Inc., member
FINRA/SIPC, an unaffiliated
company.
A trust is a separate legal entity that holds
your assets that are then used for the benefi t
of one or more people (e.g., you, your spouse,
or your children). You will need an attorney to
create a trust.
Are my assets and accounts
properly titled?
Make sure assets such as your house, vehicles,
investment accounts, and other real property
are titled properly. This will help ensure
that your estate will pass as intended to
benefi ciaries.
Who are my designated beneficiaries?
You would be amazed how many times an ex-
spouse is named as benefi ciary. Make sure your
accounts are updated. Did you remember to
add your children? Do you have a contingent
benefi ciary in the event that your benefi ciary
pre-deceases you? How about a “Transfer-on
death” benefi ciary for individual brokerage and
bank accounts not titled to a trust.
Who will make decisions for me
if I am incapacitated?
A health care directive will allow a designated
agent to make health-related decisions on your
behalf. A fi nancial power or durable power of
attorney will help you ensure that in the case of
your incapacitation, a designated person will be
responsible for your fi nances.
Do I have a life insurance policy?
Life insurance can provide tax free money for
your benefi ciaries for taxes and fi nal expenses.
Make sure family members have access to the
policy information, carrier, and agent associated
with your policy.
Where are my documents?
Surviving family members will need access to
your bank, retirement and investment accounts.
Make certain someone you trust has access
to and list of your user names and passwords,
account details, a list of all debts including
credit cards, car payments, loans, expenses. Also
keep a contact list of your fi nancial advisor, tax
person, attorney, and insurance agent. Keep this
information updated and in one secure spot.
This is just a starting point. Your situation will
be unique with its own complexities and may
require the assistance of a legal professional
to put your plans properly in place. At RNP
Advisory Services we are happy to answer
any of your questions regarding investments,
retirement, and fi nancial planning.
“Live as if you were to die tomorrow.
Learn as if you were to live forever.”
Mahatma Gandhi
This article is intended for educational purposes only.
It is not intended for investment, legal or tax advice. Always consult your financial,
legal or tax professional for guidance with respect to your specific situation.
GILROY • MORGAN HILL • SAN MARTIN
JULY / AUGUST 2016
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