When your time comes, will you feel comfortable with who receives your estate and how the process is managed? Would it be prudent to place restrictions on how the gift is received? When planning an estate, inheritance is a privilege, not a right.

 

How will your estate best be distributed?

• If you have children, should it all pass to them, and are they responsible enough to accept the inheritance?
• If your estate includes family heirlooms, are you able to talk through who might appreciate receiving each item the most, regardless of their value?

Do you regularly give to charity?

• Consider making an impact by leaving all or a portion of your estate documents or from your retirement accounts to a charity that’s close to your heart. In certain circumstances, you’ll want to talk to a tax advisor as it can provide substantial tax benefits.

Do you have minor beneficiaries?

• Determine who will hold, manage and distribute these assets for the benefit of your children until they’re financially responsible enough to accept the gift.
• Is a beneficiary receiving needs-based public benefits (SSI or Medicare/Medicaid) that they need to keep? Consider a Supplemental Needs Trust provision to ensure that the funds are used only to supplement the benefits being received, so the beneficiary isn’t disqualified.

Do you have a “spendthrift” beneficiary?

• This is a child or intended beneficiary that’s proven irresponsible with money, and that may benefit from restrictions or conditions placed on the inheritance over time.

Does a beneficiary struggle with alcohol, drug, or gambling additions?

• Consider placing conditions on a beneficiary’s receipt of the funds and allowing a third party to manage distributions if receipt of the funds would hurt the beneficiary.

 

Adapted from Anderson Estate Law1

Securities offered through SCF Securities, Inc Member FINRA/SIPC 155 E Shaw Ave. Suite 102, Fresno, CA 93710: (800)955-2517. SCF Securities, Inc and Creative Financial Strategies LLC are independently owned and operated. www.scfsecurities.com. Note: Securities offered through SCF Securities Inc, Investment Advisory Services offered through SCF Investment Advisors, Inc. This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

1 https://www.andersonestatelaw.com/estate-planning/the-ultimate-estate-checklist/

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