In this episode, we walk through what estate planning is and who needs it, the basics of financial and medical power of attorney, and planning a will. We also discuss some common misconceptions surrounding estate planning and what to look out for when you are ready to start the planning process.
In our next episode, we will talk about what trusts are and how to protect assets, so make sure to tune in!
Key Takeaways
Takeaway 1: What is estate planning? 00:42 - 03:17
- Two sisters at a workshop had opposing ideas:
- All about not losing money vs. Making sure mom can die peacefully without guessing what she would have wanted
- Both sisters are correct, estate planning addresses both of these ideas.
Takeaway 2: When to start estate planning? 03:18 - 06:54
- Science cannot replace the brain - it is important to plan ahead and organize your estate planning before your brain enters "la-la land" or later you have some sort of disability.
- Estate planning is being prepared before it can become messy.
- You want to control your property while you are alive and well. Control is key.
Takeaway 3: Misconceptions 07:20 - 15:05
- Family is the most important thing = WRONG
- We think family is the most important thing, but in reality, it's yourself.
- It's like on an airplane when the oxygen masks fall down, you have to put yours on first before helping others. You have to take care of yourself first. Then you can take care of the rest of your family.
- Everyone is always wanting to know about money, but with that the pyramid is upside down. We need to flip the pyramid. The base is the most important thing. The base is you and your spouse, then your family, and then the money accumulated and how to protect it.
- Some people think that estate planning can be generalized for everyone, but everybody has very different needs, and estate planning is not uniform. It's impossible to answer the "What do I need?" question without knowing much about a person and their family.
- Heirs are, in fact, not determined until death.
Takeaway 4: Advice for getting ahead 15:06 - 25:05
- It is important to put money into a trust if you do not want to give an outright distribution to an 18-year-old.
- Do not leave anything to chance; plan for all the contingencies. Put money in trusts to be prepared for whatever scenario plays out.
- Financial power of attorney is a great place to start with planning once you turn 18. If you don't have one and you lose capacity, the only way to appoint a beneficiary is to go through a guardianship hearing.
- Yes, there is a fallback will, but it's not perfect. Do not rely on a fallback statute.
- Financial power of attorney, medical power of attorney, and a will are the most important items to start with.
Links and Resources Mentioned
Connect with Bellomo & Associates on Social Media
LinkedIn: https://www.linkedin.com/in/bellomoandassociates
Ways to work with Jeff Bellomo
Contact Us: https://bellomoassociates.com/contact/ Practice areas: https://bellomoassociates.com/practice-areas/
