Legacy Strategies

By Len Hayduchok, CFP ®

about your well-being to be able to make the decisions you want them to make, for you.

Afinancial advisor is a key person to speak with regarding your retirement plans, and has no vested interest in whoever you leave your money to. Whether you plan, or just leave what’s left, it’s your money-- what you leave and who you leave it to is up to you.

Everyone who’s retired should have a few Important Legal Documents in place:

• Will

• Power of Attorney

• Healthcare Power of Attorney

• Advanced Medical Directive

By having these in place, you will prepare those who you want to be concerned

Another important document to consider is a TRUST. Trusts provide several benefits. One is to avoid probate. By putting assets into a trust, your will does not have to go through the court system and your assets that are in the trust pass to heirs very easily. Financial Advisor who are not members of the bar cannot give you legal advice. But it is very important for Financial Advisor to direct you to have these documents prepared by properly credentialed individuals.

Trusts serve two important roles, one is to avoid probate--the process by which the will is reviewed by courts to make sure it is the intention of the person who has passed away. A second benefit to having a trust is that it provides Creditor Protection. Assets that are in a trust cannot be attacked by creditors who may have sued you, and after some period of time the assets in the trust are protected from individuals who have to go to a nursing home.

Perhaps the most important service that a Financial Advisor can provide you in regard to Legal Planning is to make sure that any taxes that your heirs have to pay on the assets left to them are minimized. We do not have high estate taxes in DE at this time, but assets like 401ks, IRAs are taxed at normal income tax rates. If it’s important to you to leave as much as possible to your heirs, you need to do tax planning while you’re alive to minimize how much taxes your heirs will pay when you pass away. Two advisable requirements to look for when choosing a financial advisor are a thorough understanding of the professional fiduciary obligation to act in the client’s best interest, and credentials such as being a Certified Financial Planner or having a comparable professional designation.

Len Hayduchok is the director and owner of Dedicated Financial Services. As a fiduciary and Certified Financial Planner® , he offers his wealth of experience to guide others through the mire of financial and retirement planning. As a Certified Life Coach, he pairs his financial expertise with a heart to help others who want to make the most of their retirement plan. Investment advisory services are offered through SGL Financial LLC.