By Jason LaBarge, Financial Advisor and President of LaBarge Financial
My father passed away in November of last year. It was a devastating moment to lose someone my family and I admire so much. Fortunately, my father had things in place, making the process easier. That is not the case with everyone. Only 32% of Americans have a will and 40% don’t think they have enough assets to create one. Many think estate planning is reserved for the wealthy or that they don’t have to worry about it until they reach old age. But an estate plan is important for documenting who will receive your assets should you become incapacitated or die. Everyone, regardless of age or income level, should have an estate plan.
The Pitfalls of Neglecting Estate Planning
Without a will or estate plan, distributing assets among beneficiaries can turn into a painful process. Your assets are likely to end up in probate, which is the legal process of settling a person’s estate in court after they pass away. Careful inventory of your property is taken and everything is split up among your beneficiaries. Probate cases can be time-consuming, taking anywhere from months to years to settle.
When my grandfather died unexpectedly in 1982, my grandma Marcella was left to manage all of their finances on her own. She had to sort through insurance, bank accounts, funeral arrangements and more. On top of grief, she had to grapple with financial uncertainty. It pained my family to see her struggle, but I was young and had no idea how to support her. Her situation became part of my inspiration to pursue finance.
As I’ve grown my firm, I’ve formed strategic partnerships with attorneys, CPAs, Medicare professionals and Social Security experts to provide a one-stop shop for every client’s financial needs. One of our trusted partners, Munoz Estates & Trusts, spearheaded by Rachel Muñoz, Esq., handles all things related to estates and trusts and has helped many people avoid the plight my grandmother experienced.
Estate Planning Considerations
The first step in estate planning is to take inventory of your assets by writing everything down. Make a list of financial accounts, insurance policies, investments and any real estate you own. Meet with an estate planning attorney who can help you carefully examine all of your assets and document who will receive what after you pass away.
Keep in mind your estate plan is a living document that should evolve with your life. Make sure you regularly update it as you experience major life changes like marriage, divorce or remarriage. This will ensure your money lands in the right hands once you’re gone. I’ve witnessed situations where people forgot to update their estate plan after remarrying, resulting in the ex receiving money while the current spouse was left with nothing.
It’s also important to think beyond money to account for treasured possessions like jewelry, furniture and family heirlooms. Have conversations with your family about who is going to receive what and then make sure it’s in writing. Assuming that everyone is going to amicably distribute possessions is wishful thinking. I’ve seen family members get into nasty fights over things like gun collections or China sets.
I miss my father tremendously these past seven months have changed the person I am and the way I look at life. I am fortunate that I have had the perspective both from my grandmother and my mother on how things can go at the end of life. I will be certain to have things set up like my father did and I hope you do too.
Securities offered only by duly registered individuals through Madison Avenue Securities, LLC (“MAS”), member FINRA/SIPC. Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. MAS and LaBarge Financial are not affiliated companies. Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation. Munoz Estates and Trusts, Labarge Financial, AEWM, and MAS are not affiliated entities. There is no compensation exchange between LaBarge Financial and Munoz Estates and Trusts. 2516540 07/24