Building a Strong Foundation

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Building a Strong Foundation for Your Family’s Future

Asset protection and estate planning are like building a house: you must start with a strong foundation for it to withstand the test of time. A plan built on a weak or fragmented foundation will eventually collapse. The biggest trap families fall into is creating a plan in pieces over many years—getting advice from different bankers, insurance agents, and financial advisors without ever having an experienced planner integrate everything into a single, cohesive strategy.

The Danger of a “Hodge-Podge” Plan

Most people are crisis planners. They are optimistic about the future and procrastinate until something bad happens, at which point they are forced to react. This isn’t planning; it’s a reaction that often leads to a messy and ineffective collection of documents and accounts that work against each other. The symptoms of a fragmented plan include:

  • A will that is overridden by the joint titling on a bank account.
  • An outdated beneficiary designation on a life insurance policy that sends money to an ex-spouse.
  • A “simple” power of attorney that lacks the specific authority needed to protect assets during a long-term care crisis.
  • A trust that has never been properly funded, rendering it useless.

When the pieces don’t work together, your family is left with a plan that fails, leading to unnecessary costs, delays, and conflict during the administration of your estate.

The Blueprint for a Strong Foundation

A strong foundation is built with intention, integrating four crucial components into one master plan.

1. The Foundational Legal Documents

This is the essential starting point. An experienced elder law attorney will ensure you have a robust set of documents tailored to your needs, including a Last Will and Testament, a Durable Power of Attorney for finances, a Health Care Power of Attorney, and a HIPAA Release.

2. The Asset Alignment Review

Your documents are only effective if your assets are aligned with them. A true planner will conduct a thorough review of every asset you own—your home, bank accounts, investments, and retirement funds—to ensure the titling and beneficiary designations are consistent with your legal documents and overall goals.

3. The Long-Term Care Strategy

A plan that doesn’t account for the potential cost of long-term care has a major structural weakness. This involves understanding all available resources and creating a strategy to pay for care without depleting your life savings. This may include:

4. The Professional Team

A successful plan is a team effort. An experienced elder law attorney should act as the “architect” or “quarterback” of your plan, coordinating with your other trusted advisors, such as your financial planner and CPA, to ensure everyone is working from the same blueprint.

Tailoring the Foundation to Your Family

This plan must also be tailored to your unique life circumstances. The needs of young parents, who require a trust to name a guardian and manage an inheritance, are vastly different from those of retirees. A plan for a second marriage requires a completely different approach than one for a first. Every family has different needs, goals, and dreams, and your foundation must be built to support them.

A holistic approach to your legal and financial plan ensures all the pieces work together to protect your family and preserve your legacy. Call our office at (919) 256-7000 to schedule a consultation.