The Key to PERFECT PLANNING:"Asset Alignment"
- at one time & one time only -
What's the secret? What's the key? What must I do to have a good estate plan? Could I make it even better? Could I make it PERFECT?
There is only one "Key" to a perfect plan in our opinion: having everything in place and ready when the plan is implemented - and your plan is not implemented today.
There are only two times your plan gets implemented: at disability or at death. And if 100% of your assets are not "aligned" properly at those times, then there is a really good chance your plan won't work.
And having a Will or even a "state-of-the-art" Trust has nothing to do with asset alignment.
What is ASSET ALIGNMENT?
Asset Alignment has two (2) components: (1) going WHERE you want it to go; and (2) going IN THE WAY you want it to go.
- going WHERE you want it to go is not as easy as just naming a beneficiary to inherit a particular asset. What if you beneficiary-designate your IRA to your Spouse? Then you die. Then your surviving spouse inherits your IRA. Then your surviving spouse gets re-married and then your surviving spouse dies next - who gets your IRA? Your replacement?
- going IN THE WAY you want it to go is also not as easy as just naming a beneficiary to inherit a particular asset. What if you name a Child to ultimately inherit all or a portion of your assets? Then you die. Then your Child inherits those assets in their name. But, let's say they've already been divorced - or get divorced in the future: do you think that past or future ex-spouse of your Child could possibly get your assets - instead of your Child and then your Grandchildren?
The Problem:
So, what's the problem with Asset Alignment? It's simple: your assets are rarely properly aligned when it matters. When does it matter? When the time comes. When is that? When you become disabled or die.
So, let's say you've done a good job of estate planning so far. Most clients prepare estate plans to take care of their families. And that's probably your motivation also: you want to take care of your loved ones with the least amount of hassle for them and for as little money as possible when the time comes. Again, when does the time come? When you become disabled or you die.
So, you want an estate plan today that will take care of your family in the future. Right? Of course that's what you want. Next Question: when will that happen?
Don't you know when you are going to die? Of course you don't. But you want your estate plan to "work" at that time in the future, right? Whenever that is.
So what you want from your estate planning attorney is an estate plan created today that will take care of your family at sometime in the future. There's only one problem: there are 5 things you will never know: 1) You don't know when you are going to die; and 2) You don't know what the laws will be at that time; and 3) You don't know what assets you will own when you die; and 4) You don't know what your family situation will be at that time; and 5) You don't know what's going to be important to you when you die at some time in the future.
This is why most estate plans never work. You've created an estate plan today and when the time comes, everything has changed!
There is a better way. Contact our office today to learn more.
