Putting Your Estate in Order, Susan Moore

Putting Your Estate in Order

When is the last time you reviewed your estate plan? Do you have a will? According to a recent survey by the Harris Poll, 64% of Americans don’t have a will. Why? The most common reason mentioned was that “they hadn’t gotten around to it yet.” If you have a will, when is the last time you reviewed it? Due to estate law changes in the last seven years, there is a good possibility that a will that was drafted more than seven years ago needs to be revised.

In addition, when is the last time you reviewed your beneficiary designations in your 401(k)s, IRAs, life insurance policies and annuities? One of the most common estate planning mistakes is not making sure that beneficiary designations are in order. Many people believe that the will governs everything about their estate and don’t think about regularly reviewing their various beneficiary designations. In fact, if your beneficiary designations differ from what is expressed your will, the beneficiary designations specified in retirement plans or insurance policies will trump the will.

Another reason to review your estate plan is the passage of the SECURE Act in December 2019. It abolished the Stretch IRA for many beneficiaries. In the past, if a child or grandchild inherited an IRA, they were able to stretch out distributions from that IRA over their lifetime. The new law requires heirs who inherit an IRA to take all of the money out within a tenyear-period. This applies to both inherited traditional and Roth IRAs. That means an adult child who inherits an IRA when they are in their fifties and are at their peak earnings level are going to have to pay more taxes on their distributions than they would have before. Trusts that are named as beneficiaries to an IRA need to be reviewed to make sure that the trust complies with the new law. Many trusts will not. There are some exceptions to the tenyear rule: spouses, disabled children, children while they are minors (but not grandchildren), the chronically ill, etc. However, the elimination of the ability to

Financial Thoughts with Susan Moore

By Susan Clayton Moore, J.D. Principal of Moore Wealth Management, Inc.

stretch out distributions over a lifetime will impact individuals who planned on leaving a large IRA to their children or grandchildren. Planning solutions that will be discussed during the webinar described below include changes like taking more or larger distributions from an IRA to fund the premiums on a life insurance policy so that the children can receive a tax-free legacy or using the IRA to fund annual charitable giving while leaving other assets to children. We will also discuss how the SECURE Act makes Roth IRA conversions more compelling.

On Wednesday, August 26th, Susan Moore of Moore Wealth Management will be conducting a free estate planning

webinar. The workshop covers several topics, including a review of the various legal documents involved in estate planning such as wills, durable powers of attorney, advanced healthcare directives, revocable and irrevocable trusts. Beneficiary designations are a great tool in estate planning, properly used. They are flexible and can be changed without having to re-do legal documents to reflect family changes such as births, deaths and divorces. The workshop covers how to use these beneficiary designations properly, including primary and contingent beneficiaries and per capita or per stirpes distributions.

In addition, the workshop gives attendees a template of how to conduct a family meeting at which you communicate to your family and heirs your plans and intentions around the distribution of your assets. A vital part of this meeting is to define the roles and responsibilities of your various heirs as well as general instructions, including the location of key documents, burial wishes and intentions for tangible personal property.

If you would like to be included in the webinar, please contact Sarah at 256.234.2761 or sarah@ moorewealthmanagement.com.

Susan Clayton Moore, J.D., is a financial advisor and wealth manager with Moore Wealth Management, Inc. which has offices in Montgomery, Alexander City and Auburn. She has been a financial planner for over 37 years. Susan has been quoted in Kiplinger’s Magazine and Investment News. She earned her law degree from Tulane University in 1981. Contact Susan at 256.234.2761 or by emailing her at susan@ moorewealthmanagement.com. We offer confidential consultations and second opinions about portfolios without cost or obligation.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS or Kestra AS are not affiliated with Moore Wealth Management, Inc.

The world's longest-living people

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Twelve years ago, Dan Buettner visited communities around the world known for having many centenarians (people who live to be 100 or older), including Okinawa in Japan, the Barbagia region of Sardinia and the Seventh Day Adventist enclave in California.

Buettner, an author and longevity expert, called these areas “Blue Zones.” He and his team of researchers wanted to find similarities among the residents that lead to a longer, happier and healthier life.

Some are things you might expect, like a mostly plant-based diet, a strong social support group and moderate exercise. But there is one surprising commonality: In each community, residents garden well into old age. That’s no coincidence, as there’s plenty of research to prove that gardening increases well-being and longevity.

Why gardening could help you live longer

1. It gets you into nature. Exposure to sunlight, fresh air and plant life all have health benefits. In fact, doctors in Scotland prescribe “nature walks” for high blood pressure and anxiety. They also encourage patients to interact with the surroundings, whether that means bird-watching or collecting twigs. In a famous 1984 study, environmental researcher Roger Ulrich found that patients who had their gallbladders removed recovered faster — and with less pain medication — if their hospital rooms looked out on nature rather than a brick wall. Nature is restorative, he noted, because “we have a kind of biologically prepared disposition to respond favorably to nature because we evolved in nature. It was good to us, and we tend to respond positively to environments that were favorable to us.” If being around nature is good for you, then being consistent about it is even better, which is something that gardening pretty much forces you to do. You may try to jog every day in the park, but then blow it off for a few weeks when your schedule gets too busy. If you stop tending to a garden midway, however, you’re liable to see all your hard work go to waste as weeds take over everything. 2. It’s good exercise. Is gardening the equivalent of running a triathlon? Of course not, but it still qualifies as exercise. Different types of gardening require different amounts of physical activity. “Working in the garden restores dexterity and strength, and the aerobic exercise involved can easily use the same number of calories as might be expended in a gym,” according to Richard Thompson, a researcher at London’s Royal College of Physicians. Turning the earth and digging up stones, for example, can be one of the most effortful things you’ll ever do. At the other end of the spectrum, pruning roses bushes and planting seeds constitute very mild exercise.

3. You’ll eat what you grow. This benefit won’t apply if you only grow decorative plants such as flowers and shrubs. But if you grow fruits and vegetables, as folks in the Blue Zones do, you’ll gain the health benefits of adding

these items to your daily diet. Not only will you be eating more plants, you’ll also get more nutrition from them. Most fruits and vegetables lose 30% of nutrients three days after harvest due to respiration — a natural process by which they continue to “breathe” after they’re removed from the ground. (If you buy produce in a supermarket, there’s a high probability it was picked several days earlier or even longer.)

In terms of reducing the time between harvest and consumption, nothing beats pulling a berry off a bush and popping it into your mouth, or tearing off lettuce leaves to prepare a salad. Plus, it tastes a lot better.

4. It exercises your mind, while also relieving stress. Most of us spend our work lives planning and problem-solving. Gardening requires these skills, too, but it also forces you to be in the moment, often by confounding the plans you made. Sometimes you step into your garden and do exactly the task you intended. But other times you have to change course because, say, you notice a fungus infestation or that a bunch of produce is suddenly ready to be harvested.

Working in the garden and dealing directly with the natural world also has a way of slowing down busy thoughts and relaxing your mind.

In one study conducted in the Netherlands, 30 people were assigned a stressful task, followed by 30 minutes of either reading or gardening. Those who gardened recovered from the stress much more quickly, based on both their own reports and a test measuring the level of the “stress chemical” cortisol in their bodies.

No wonder so many mindfulness experts consider gardening as a form of meditation.