Steve Sexton, President of Sexton Advisory Group, recently discussed three things that every American over the age of 65 should be considering about their estate and disability planning:
1. Lawyers can create great legal estate planning documents, but if your assets are not "funded" into the trusts - or if you have documents that are poorly defined in a disability situation, you can end up with a very IN-effective plan. Here are some significant problems to look out for:
• If you have a trust and none of your accounts are tied to it, the trust will not help your estate avoid probate. A well-prepared legal document can help your family avoid the cost of probate, (AARP reports average probate costs annually are 3-5%) but if your bank and investment accounts are not held in the name of your trust, it will not help.
• It is also important to make sure your real estate is tied through newly created deeds to transfer the property into the trust.
2. Long-term care can wipe you out financially. Newly enforced Filial Responsibility laws may end up costing your kids their savings to pay your nursing home bill. This may be hard to believe, but that is the new reality of healthcare. With home health care aides costing $15-30 per hour and Assisted living facilities costing from $4,000 to $8,000 per month in many parts of the country, nursing homes can cost well over $100,000 per year. Developing a long-term care plan is critical. There are a variety of ways to use leverage with specific financial products to help you protect your hard earned retirement savings beyond traditional long term care insurance. Being proactive and planning for these future tragedies can spare your loved ones the stress of trying to "figure it out."
3. Divide and BE CONQUERED. All too often financial advisors rely just on financial solutions to solve a client's long-term care risk. Likewise, lawyers look to their legal documents to solve the problem. The best advice is to seek out a "team approach". A well-prepared financial plan addressing death and disability, designed in tandem with coordinated and well-drafted legal documents, will yield you the very best results. Two professionals working "independently"
For more information on this topic, or to learn how Steve Sexton can help, please visit http://www.sextonadvisorygroup.com.
About Steve Sexton:
Steve Sexton has over 15 years of experience in the financial services industry and holds multiple licenses and designations. His company, Sexton Advisory Group has grown steadily over the last eight years and has seven offices serving Riverside and San Diego Counties.
Sexton is a well-known media expert and has been asked to appear on a variety of Southern California media over the past three years to share his expertise. Steve hosts “Winning In Life Radio with Steve Sexton on 1170am KCBQ and Ch6 CW Daily Living Show” Money Minute” segment in San Diego, Ca.
Sexton also works with many charities. He has sponsored special events for various charities, such as A Salute to the Military, benefitting Pat Boone’s Ryan’s Reach charity, events for Hospice of the Valleys and many more.