How to Protect Your Assets and Leave a Legacy
You’ve likely worked hard to build what you have and hope to pass it down to the next generation. But your plan could be at risk if you haven’t taken the time to protect your assets in case of an unexpected event. Learn what steps you can take today.
Check Your Insurance Coverage
If you were to pass away unexpectedly, would your family have enough money to live on? Would that money be enough to cover longer-term goals such as paying down the mortgage and sending children to college? Though no one likes to think about needing it, it’s critical to ensure you carry enough life insurance coverage. There are many online calculators available that can give you an estimate of how much coverage to secure. Often, the coverage you need may be more than you expect.
Don’t forget to ensure you carry enough coverage for the other areas of your life, to avoid costly out-of-pocket situations. If you’re self-employed or own a business, do you need disability or key man insurance? Is your homeowners insurance sufficient to cover the current value of your home and the personal items you own? Should a teenager be added to the family auto insurance policy?
Build a Robust Estate Plan
Having the proper estate planning documents and keeping them up to date is vital in protecting your assets. First, everyone needs to have a will. A will spells out your wishes for your assets and names someone to handle your financial affairs. Through your will, you can name guardians for any minor children, and share your desires for who will receive your property and other assets.
The next step is to appoint trustworthy people to carry out certain responsibilities in the case of your death. They include an executor of your estate, who serves as the primary agent who has the authorization to make financial decisions, as well as a healthcare proxy in case you fall ill and cannot make medical decisions.
Finally, consider setting up a trust as a means to pass assets down to your heirs. Trusts provide tax advantages and help ensure your legacy is protected. Read more about getting started on your estate planning.
Protect Your Business Assets
I frequently work with business owners, who have unique needs when it comes to protecting their assets and those of their businesses. But thinking long term can be difficult when you’re managing the day-to-day. Still, to protect what you have built, you need to create a plan for when you’re no longer in charge. What happens when you want to retire? Will your children take over; and if not, do you need another exit strategy? Would you one day sell the business? Building a plan today can help protect and maximize the assets of your business when you’re no longer calling the shots.
How Advice Can Help You Preserve Your Assets
When life is busy, it can be difficult to find time to ensure you have enough coverage for all your assets and a plan in place to preserve them. But we can help with the heavy lifting. SC Financial Services is a financial advisory firm that’s dedicated to helping you weather any financial storm that comes your way. Whether you need help managing your portfolio, creating a financial plan, or minimizing taxes, we’re here to help. Get started by contacting us at 480-214-9596 or email@example.com.