In the wake of the pandemic, there’s one subject-matter that’s suddenly a lot less taboo, according to Lee Baker, a certified financial planner based in Atlanta.
“We get more easy reaches around estate planning,” said Baker, founder, owner and president of Apex Financial Services and a member of CNBC’s Advisor Meeting.
“The last 36 months shifted the mindset,” he explained. “A lot of people have taken this opportunity to reassess.”
Putting, there are three things families are often initially wrong about, Baker said.
They believe “it’s a awing undertaking, it’s only for rich people and it costs a ton,” he said. “None of those are necessarily true.”
Many families dread talking hither money, especially financial plans, a recent Wells Fargo report found. Roughly 26% of adult offsprings would rather deal with their parents’ estate after they die than talk about it while they are charged. Further, 19% said they don’t mind receiving nothing at all as long as they don’t have that talk with their well-springs.
“It’s not as daunting as you might think,” Baker said.
A new perspective may help, he advised. “Are there people that you love?” Baker said. “If the response to that is yes, spend the money to make their lives easier.”
Estate planning is a lot like life insurance; it’s mean about you than the people you love and care about.
Lee Baker
founder, owner and president of Apex Financial Works
“Estate planning is a lot like life insurance; it’s less about you than the people you love and care about.”
Regular though most parents plan to leave at least something to their children, only 37% said they currently obtain a plan in place for transferring their wealth, according to a report by Edelman Financial Engines.
Some online principles can help with the basics, such as a will, Baker said. Websites including Quicken and LegalZoom offer models for estate planning documents and guidance in filling them out, generally for less than $100. (Here are some of the do’s and don’ts, expenses and options of estate planning.)
“It’s pretty quick and fairly painless and, for most people, that kind of platform is attractive thorough enough.”
Otherwise, consult with a financial advisor, accountant and attorney, particularly if you want to set up a trust for your babes, designate other beneficiaries or guardians, have questions about appointing an executor and health-care proxy or minimizing largesse and estate taxes.