Why a Special Needs Trust?

I think as parents we could all agree parenting is not always an easy job.

Some things we just get right and some things we just don’t?

As parent’s we can never be expected to know everything that our kids will need.

But we do know how much planning is involved when it comes to planning for our children’s future.

Planning for the parents of children with special needs can often become an extremely daunting task.

I am sure a question they are always asking themselves is who is going to take care of their special needs child when they are gone.

Special Needs Trust planning is something where the parents should seek the advice of an expert.

For parents of children with disabilities or special needs it is vital for them to have an effective estate plan, which puts them in control of their finances while they are alive giving them the peace of mind that their children will be taken care of in their absence.

A Special Needs Trust helps ensure that the beneficiary receives the benefits in the way the parents intended and protects them against losing access to the government benefits, which can be affected by as little at $2000 if your child was to receive this as inheritance directly.  Which in most cases because of lack of knowledge in this area, leads them to disinheriting their special needs child and they leave the money to someone who they think they can count on to take care of their child.  In most cases however this is not the best answer.

Special Needs trusts can be used to supplement and never replace the government benefits that special needs children are entitled to.  But parents need to be educated on any restrictions that could affect the benefits their child receives.  Special needs trusts should be created to provide additional benefits while protecting the assets of the special need child.

Creating a Special Needs Trust ensures peace of mind as it allows the assets to be managed by someone who has been previously chosen by the parents, because in most cases they cannot be managed by the child on their own and can prevent the assets from being wasted away.

Of course estate planning in the case of special needs planning is no less of an emotional roller-coaster than any other estate planning; it is always a difficult process to go through.

But it is very satisfying for the parents when they have done it, knowing that they now have the peace of mind that their children will be taken care of by people they have chosen and in the way that they have instructed when they no longer can.  Making this one of the most important things a parent of a special needs child can do for them.

So if you are the parent of a special needs child do not put it off, it is vitally important that you make the choices for your child’s future and that you do not leave it to chance.

Have you Reviewed your Beneficiaries Lately?

Have You reviewed your beneficiaries lately?

That’s not something that you think of doing very often. 

For some it may be something they ever really think about.

So maybe it just not that important.

Anyway I am just too busy to take care of that right now, and I thought I was done with all my ‘housekeeping’ chores when I opened my financial accounts.

Reviewing my beneficiaries, it doesn’t seem like an urgent task anyway, my money will all go to the right place in the end. Or will it? 

Reviewing our beneficiaries is more important than we think.

Actually it is something that should be considered a top priority on all your current investments, insurance policies and financial accounts.

How can this make that much of a difference, maybe the question you are asking yourself?

Here is why it needs to take top priority on our ‘to do list’.

Beneficiary Designation supersedes one’s will.

If your beneficiary information is not current, when you pass away your assets will more than likely be distributed to an unintended heir?  As the beneficiary that you have listed can and does it most cases supersede even an up to date will.

Tax Related Benefits.

Not naming a beneficiary or naming your estate can be as equally bad, as by doing this you could be giving up some tax strategy rights as well as control.  Having beneficiary designations can help extend tax related benefits and reduce the tax burden on your beneficiaries.

Take the Time to Review your Beneficiary Details.

Life transitions can change everything for us.  Recently been married, divorced, had a new baby or even a death in your family since you originally opened your accounts or got that life insurance policy?  Well it is time to review and get updated your beneficiary designations.  By taking the time to do this you will be ensuring your wishes are carried out and you will be preventing your loved ones from the added stress that comes with the legal complications at your time of death if not done.

It should not be one of those job’s you will get to later, call your advisor today, don’t be in doubt make sure you take care of this vitally important issue and give yourself the gift of peace of mind that your family will be taken care of in the event of your death.

Love, Marriage and Money

 Even when we are truly in love, we still need to talk about money.

I know it is the last thing you want to talk about before you get married.

You can sort all that stuff out afterwards right?

No!

Think about it this way.

Have you ever cheated on your partner?

I mean with money.

Probably, I know I have.

You know the kind of cheating I am talking about.

The kind, when you buy a new outfit, you put it in the closet without mentioning it.

Or when you buy a new pair of shoes and you say you got them in the sale, when actually you paid top dollar for them. Maybe it’s not telling your partner how much you charged to your credit card when doing the Christmas shopping.

Did you know that money causes the most arguments and breakups in any marriage?

So before tying the knot be sure you are open and honest about finances.

Here are a few things that should be discussed beforehand.

Is There any Existing Debt?

Nowadays it is very common to leave college with debt, it is important to be honest about how much debt you are bringing to the marriage.  It has to be decided how the debt will be paid off and if you are going to pay it off jointly or separately.

Are there any Existing Investments?

This is obviously better than bringing debt to the marriage, but it is also something that needs to be discussed beforehand.  Will these investments now be held jointly, and if so how will this be done and how will you maximize these investments?

Don’t forget about insurance.

Life, health and home insurance.  All existing insurance needs to be taken into consideration possibly combining and reviewing, making sure that it is now in keeping with your new circumstances and that you have enough coverage as a couple.

What about Retirement.

Often this topic is best discussed with a Financial Advisor who can help you with the financial goals that you have as a couple, someone who can guide you to make the best decisions on how to invest and manage your money for your future retirement.

Estate Planning.

When entering into a marriage it is especially important that you do not neglect your Estate Planning, no matter how young you are.  If you already have some Estate Planning done you will have to have these documents updated to be aligned to your new situation.

Do I need a prenup?

Well a prenup probably doesn’t seem like the most romantic thing in the world, but it is a very important part of the planning.  As statistics show that a high percentage of marriages do end in divorce these days.  It is not just for the rich, it is for everyone.  It helps set the rules for situations like if one partner has more debt than the other or maybe if one partner is entering the marriage already owning a business.

Talk about it and be honest.

Money is a difficult conversation, but avoiding the discussion can lead to a lot of arguments down the road.  Don’t let small problems grow into unnecessary ones just because you felt uncomfortable about talking about your finances.  Seek advice from an expert to help you.

Are you planning to get married soon but haven’t yet spoken to a professional?  Don’t put it off any longer call my office today and schedule a free consultation.  Start your marriage of on the right foot.  239 288 0974. Karla White - Waterstone Financial

Retirement Roadmap for Women

 Is retirement planning different for women than it is for men?

Should women be thinking about using their own retirement roadmap when it comes to doing their retirement planning?

Women tend to live longer than men.  Which in turn means they will, more than likely spend more years in retirement than men?

All joking aside as to why women may live longer than men, can this really affect women’s retirement planning?

Are there other factors that require women to use a different Retirement Roadmap?

Here are a few essential things that women should keep in mind to help them avoid making any wrong turns with their retirement journey.

Women Live Longer.

As I already mentioned women tend to live longer than men, on average it can be as much as 7 years longer, which means that women need their retirement income to last 7 more years.  For a women retiring at age 65, this means that the investments where she is getting her income from will need to last her until she is about 97 years old.

Women Still Tend to Earn Less.

Even today with the equal pay law, women are usually still paid less on average than men.  This does therefore make it harder for women to save for their retirement.  With this lower income also comes the knock on effect of the negative benefits that it has on a woman’s social security benefits.

Women Spend Less Time in the Workforce.

Women typically spend on average about 12 years not working, usually when they take time out to be caregivers, raising their children and sometimes to take care of elderly parents.  This time out of the work force subsequently means reduced retirement savings which can affect the amount women are able to invest into their retirement plans and again into social security.  This can even lead to women having to delay their retirement.

Women Tend to Invest to Conservatively.

Statistics show that women tend to invest a lot more conservatively than men; more often than not women tend to choose “safe” rather than “risky” investments, which in turn can mean that their investments will not grow enough to support them through their retirement years.

Take Control to Avoid Bumps in the Road.

Women need to think about the future despite these obstacles that they are faced with.  Women can take control and plan for a safe and comfortable retirement.  By educating themselves to be able to understanding each individual obstacle that they face, this will allow them to plan and take control of their retirement.

Is it time for you to make retirement planning a top priority, if so contact me at 239-288-0977 to get the education that you need to give you the retirement roadmap that you need to make sure your retirement journey is safe and comfortable.