A Crucial Component of Success: Succession PlanningSubmitted by U.S. Wealth Farmington Valley on March 5th, 2020
Have you Prepared for Your Future?
Succession planning is often assumed to relate to selling a business. It can, however, also refer to what will happen to you and your family if you die or become incapacitated.
Ironically, when planning for death, decisions appear to be easier. Most of us generally have that eventuality covered in a will and other estate documents. We have life insurance, have built up our investments and retirement accounts and have property to manage and/or pass on so that our survivors will be properly cared for. If minors are involved, we have established trusts to help manage the assets and income until the children are old enough to be able to do so for themselves. If the estate is large, we may also have trusts in place to protect family members from creditors and predators, which unfortunately, target beneficiaries all too often.
But what if you are disabled? Have you made plans for the situation when you can no longer work or provide an income for your family, but you now require the use of your family resources for your care needs? How will the current use of these “estate” assets affect your family after you do pass?
Most families have the “death” thing covered, but few have adequately addressed the need for resources or income in case a family member – particularly the main source of income – is disabled. I am not talking about Long Term Care Insurance (LTCI) – although you should be addressing that, as well. Long Term Disability is the one that most people forget or ignore, and many financial plans fail to adequately address.
Now is a good time to review your estate and financial plans as you gather your 2019 income tax related information to bring to your CPA. Are they up to date? If your wills, trusts, etc., are more than five years old, it’s time for a visit to your attorney to have them updated. Your family’s success may well depend on the plan you put in place today in case someone becomes incapacitated.