Estate

Why Everyone Needs an Estate Strategy

Section one covers Probate, and states that Probate is the legal process that wraps up a person’s legal and financial affairs after their death. Probate can be costly and easily take months or years, depending on the state. While no estate strategy can completely eliminate the risk of an extensive probate, managing the probate process may be possible with a valid will and assets that avoid probate.

This section includes a list of assets that avoid probate, such as property held in a trust, Jointly held property that isn’t common property, Death benefits from insurance policies, Property given away before you die, Assets in a pay-on-death account, and Retirement accounts with a named beneficiary.

Section two explains Living Wills. A Living Will outlines instructions on how to handle difficult decisions regarding your estate. Despite the importance of this document, only 32% of Americans have one. The number one cited reason for not having a will is procrastination.

Section three discusses Tax Exemption Strategies, noting that in 2024, the estate and gift tax exemption is 13.61 million dollars. Potentially hundreds of thousands of additional American households can take advantage of these strategies, passing on some of or all their assets free of estate taxes. Less than 1out of every 1,000 estates will exceed the exemption.

Section four covers Living Trusts. These trusts are managed by a trustee and can help reduce estate taxes. Created and funded while you are alive, Living Trusts are composed of assets you choose to put into them. Managed by a trustee (usually you), the assets are structured to pass to a beneficiary, or beneficiaries, automatically upon your death, much like a will.

Section five explains Power of Attorney, specifically durable power of attorney documents. These function as a written authorization empowering a person to execute personal and legal matters on your behalf. A good strategy may be to pick a person who either has some experience in these fields or has the necessary qualities to handle these decisions. This is often a spouse or adult child.

The final portion lists the sources used in the creation of this infographic.

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Paying Off a Credit Card

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When Heirs are Imperfect

The money problems or bad lifestyle habits of adult children could lead to the squandering of any inheritance they receive.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (Member FINRA & SIPC). Insurance products are offered through LPL or its licensed affiliates. Kennebec Saving Bank and Kennebec Wealth Management are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Kennebec Wealth Management, and may also be employees of Kennebec Saving Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Kennebec Saving Bank or Kennebec Wealth Management. Securities and insurance offered through LPL or its affiliates are:

Why Everyone Needs an Estate Strategy

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