Question

Life moves more quickly with every generation. There is more technology to introduce you to more data. It is your job to determine what data you need to review and understand to meet your personal and financial goals. Finance, for good or bad, is a key role to your life. Your wealth requirements evolve .... Whether your wealth is determined by the amount of cattle, acres, dollars, stocks, or bit, you will have defined by financial fundamentals to meet your goals.

Assignment

Problem 1)

As a student in a Financial Planning and Investment class, is it much too early for you to think about estate planning? Why why not ?, be specific

Problem 2)

What is the best action you can take at this time to help yourself with planning in the future?

problem 3)

In your view, what is the benefit of a trust over only a will. or is there a benefit?

Answer 1

1. It is never too early to start estate planning and age is not a criterion to start it early or late. The primary reason being if there is anything untoward that happens, there is a nominee appointed to inherit the estate. Also, it helps in tax planning, savings in fees and costs, assists in choosing a minor guardian. It helps in times of incapacitation of an individual.

2. The best action that you can take at this time are :

(I) Have a health care directive in case of any incapacitation.

(ii) Hire a power of attorney to take any decisions on your behalf

(iii) Incorporate a trust or a will clearly defining the terms and conditions

(iv) Purchase of insurance for the property and any other debts so that the burden does not fall on the family.

3. A trust has the following benefits over a will:

(I) The title of the assets remains with the trust and can be used by the designated beneficiaries which makes one avoid a title transfer process if it is a will.

(ii) The debts of the individual do not pass on to the trust in case of death and the assets are free to use unlike a will.

(iii) It assists in reduction of taxes and saving in court fees

(iv) It helps in administering the benefits to minor guardians without any court interference.