Estate Planning

Estate planning is a vital process that ensures your assets are managed and distributed according to your wishes upon your passing. At Sandvold Financial Group, while we do not provide legal advice, we specialize in helping you structure your assets to protect your wealth from probate and excessive taxation, ensuring your legacy is preserved.

What is Estate Planning?

Estate planning involves making plans for the transfer of your estate after death. Your estate is everything that you own, including money, real estate, investments, and personal possessions. Proper planning ensures that your heirs receive these assets according to your wishes, with legal and tax complications minimized. Without a comprehensive estate plan, your assets and belongings can get caught in uncomfortable and lengthy legal proceedings. Not only that but without making your wishes known, confusion can complicate the medical attention you receive.

Trust vs Will

Understanding how wills and trusts can be used in an estate plan is key to making sound and informed choices.

What is a trust?

A trust is a legal arrangement where a trustee holds and manages assets on behalf of beneficiaries. Trusts can be used to bypass probate, provide privacy, manage your assets during your incapacity, and more.

What is a will?

A will is a legal document that outlines how you want your assets distributed after your death. Unlike a trust, a will generally requires probate, which can be a lengthy and public process.

Healthcare Directives

Advanced directives, or healthcare directives, are crucial components of estate planning. They allow individuals to outline their preferences for medical care in case they become incapacitated and unable to communicate their decisions. This ensures that their healthcare aligns with their wishes and relieves family members from making tough decisions during emotional times.

How to Avoid Probate

Probate can be costly and time-consuming. There are a few things you can do to avoid probate:

Create a Trust
Transfer your assets to a trust which directly benefits your designated heirs.

Designate Beneficiaries
Ensure all accounts (like life insurance, IRAs, etc.) have updated beneficiaries.

Joint Ownership
Consider the title of significant assets to ensure they pass directly to a surviving co-owner.

Learn more

Power of Attorney

Establishing a power of attorney (POA) allows you to appoint an agent to manage your financial and health affairs if you're unable to do so. There are different types of POAs:

Durable Power of Attorney
Remains in effect even if you become incapacitated.

Healthcare Power of Attorney
Allows the designated person to make medical decisions on your behalf.

Limited Power of Attorney
This type grants specific powers to the agent for a limited task or period. For example, a Limited POA might be used to allow someone to handle financial transactions while you are overseas. It's often used for a particular transaction or a set duration and does not grant comprehensive control over all matters.

Springing Power of Attorney
This type of POA becomes effective only under circumstances specified in the document, usually at the onset of incapacity of the principal. It "springs" into effect based on certain conditions and is particularly useful in estate planning for individuals who prefer to maintain control over their affairs unless incapacitation makes it impossible.

How We Can Help

Assessment of Assets
Identify and value all assets within an estate.

Strategic Planning
Advise on how assets should be owned, managed, and preserved during your lifetime.

Collaboration with Legal Professionals
Recommend qualified attorneys to draft necessary legal documents such as wills and trusts.

Implementation of Financial Strategies
Assist in structuring your assets to avoid probate and reduce estate taxes.

Frequently Asked Questions (FAQs)

Estate planning is crucial for anyone who wishes to have a say in how their assets are handled after their death or in case they become incapacitated. It doesn’t just concern wealth, it makes things easier for your loved ones and ensures your wishes are followed.

You should review and possibly update your estate plan after any major life event such as a marriage, birth of a child, acquisition of significant assets, or a change in the law.

Yes, part of estate planning involves structuring your assets in ways that minimize taxes, allowing more of your estate to pass to your heirs.

Do You Have an Estate Plan?

If you don’t have an estate plan in place or need to update it, contact Sandvold Financial Group today. We can help you get a plan in place that will give you peace of mind and ensure that your legacy is passed down the way you want.

Contact Us

5 Ways to Stay Confident in Retirement

This guide takes a critical look at the finances of retirement. It talks about health care costs, income stability, and the burden of debt and is designed to help your clients know the recipe for success in retirement.