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By Mark McGregor, CRPC®, CFF®

Many of us have a very rough idea of what estate planning entails. For some, it’s a remote concept that’s still in the distant future. Others believe it’s mainly a matter of setting up a will.

However, many more components go into estate planning. It’s beneficial to start thinking about it, regardless of how old you are and how many assets you have. Here are some facets of estate planning and ways to manage them now.

Components of Estate Planning

Writing a will is the most common part of estate planning, but there are many other areas to address, including these.

Power of Attorney

Giving a close relation or friend power of attorney allows them to make decisions on your financial affairs should you become unable to do so.

Trusts

Setting up a trust lets you oversee your assets while you’re still alive. A trust can also offer tax benefits and help your family and beneficiaries avoid conflict or probate.

Living Will

Also called a healthcare directive, a living will describes your preferences for medical help when you’re no longer able to convey your wishes. You can also name a party to make decisions on your health.

Beneficiaries

Besides mentioning beneficiaries in your will, you can also designate people to inherit proceeds from life insurance, IRAs, investment portfolios, and other financial instruments.

Succession Planning

If you own a business, succession planning determines who takes your business over, whether by inheritance or sale. The primary goal is to make the transition as seamless as possible.

Gifting and Charitable Donations

Offering gifts and donating to charities while you’re still alive caps the taxable value of your estate and holdings. It’s a good way to distribute your wealth while realizing tax advantages.

Estate Planning Strategies

In addition to those estate planning components, there are a few strategic ways to manage your legacy while reducing the tax burdens your beneficiaries could face.

Trusts and Annual Gifting

A trust can arrange your assets for distribution among your heirs. Annual gifting to your beneficiaries also decreases your estate size without gift taxes if they’re below IRS limits.

Roth IRA Conversion

Many estate planners convert from traditional or 401(k) retirement plans to Roth IRAs. Distributions to your beneficiaries from a Roth IRA are tax-free.

Life Insurance Distributions

Your life insurance policy can be set up so your heirs can “cash out” while avoiding tax burdens. In a term life or whole life plan, your beneficiaries can receive a lump-sum, tax-free death benefit.

Family Limited Partnership (FLP)

Creating an FLP lets you pass assets to heirs at a lesser value. The structure puts a cap on gift and estate taxes and helps the family keep control of the assets.

Even if retirement seems a long way away, estate planning can arrange your assets and finances to erase confusion among your inheritors. It can eliminate the need for probate, limit risks, and safeguard your family’s financial future after you’ve gone. Most importantly, it can reassure you that your legacy is safe for generations to come.

Estate Planning With McGregor Wealth Management

At McGregor Wealth Management, I’ve worked with many high-net-worth individuals to guide them through the ins and outs of estate planning. It’s woven into my clients’ overall financial plans. That makes it easier to align investments, retirement funds, and insurance with their legacy plans in a tax-efficient way.

No matter what stage of life you’re in, McGregor Wealth Management can help you get clearer on your estate planning and other financial needs while finding hidden benefits that are rightfully yours. To learn more, contact me for a consultation.

About Mark

You probably have people helping with your investments, legal matters, and taxes…but who makes sure you are getting all the benefits you’re owed? I do. My name is Mark McGregor. I scour federal, state, local, and corporate databases to find benefits you are owed but NOT receiving. That’s what I do. Yes, we do all the other things as well, such as providing investment management, tax planning, long-term care planning and other services. Those are the big things, but I also help to make sure the little unknown things are taken care of for you. It’s also making sure that the little things don’t become big problems for you down the road.

I got into this business to fill a void I noticed after the passing of one of my friends’ parents who was experiencing hardship due to poor planning. I saw the issues they had to deal with firsthand, and this left me feeling that there were lots of financial salespeople, but not many true advisors making sure people were getting all the available benefits they had worked so hard for.

I use the skills I gained from my bachelor’s degree from California Polytechnic State University and 24 years of industry experience to get all the benefits my clients are owed. I live in Castle Rock, and we are actively involved in sports and charitable organizations, such as Unbound, which provides personal attention and direct benefits to children, youth, the aging, and their families so they may live with dignity and achieve their desired potential and participate fully in society.

Disclaimer: Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and McGregor Wealth Management are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.