He wants to touch base once a year to see if there are any major changes.
Jim fink personal investing update#
If any accounts or beneficiaries change, I can let my lawyer know and he can update the trust. I did have to open up a bank account in the trust’s name, however, because the proceeds of any accounts will be paid out to the name of the trust. There is no ongoing fee for managing anything. We set up contingent beneficiaries for all accounts just in case one of the trust beneficiaries dies before me, or at the same time. When I die, for example, assets will go into separate trusts for my heirs. If something happens to me, then my lawyer will start making phone calls to the beneficiaries of the trust. All my beneficiaries were changed to go into the trust. It cost me $4,000 to have my attorney (in Arizona) put this all together. I had heard that it could cost 1% of my assets annually to manage the trust.
One of the reasons I hadn’t set up a trust previously was that I thought I would have to pay someone to manage the trust. Right now I am of sound mind, but will I always be? There’s no way to know that, but an estate plan can help address that possibility. I don’t think many of us believe we are going to lose our sensibilities as we age, but it does happen. In the process of setting up the overall estate plan, we set up a living will, and various powers of attorney in case I am incapacitated. If you pass on money to your children, that money could be lost in a lawsuit or divorce, for example. However, one of the major selling points is that a trust can also financially protect your heirs. Read This Story: Money, Markets and Mortality A properly set up trust will keep your assets out of probate court, and speed up the process of distributing them to your heirs. Not everyone needs a trust, but if you have money or property that you want to go to certain people - and there is a possibility it will end up in court - then a trust is a good idea. He explained the advantages of having a trust to me.
Jim fink personal investing free#
I found a highly recommended estate lawyer, and met for a free one-hour consultation. I decided it was time to meet with a lawyer and create an estate plan. It occurred to me that if a tragedy hit all three of us, my finances would end up in probate court. Even so, I realized that my unexpected death would leave my loved ones with a lot of uncertainty.įurther, in a few months I will be traveling internationally with my two primary beneficiaries. Each year I communicate with these beneficiaries about those accounts. I have clearly stipulated beneficiaries on all of my accounts. I have always felt like I did a good job planning for the future. These events - combined with my own close call with mortality - caused me to do a lot of self reflection. I was among those left to pick up the pieces when some of my closest loves ones passed away suddenly.
I received many reminders that life can end in an instant. The past couple of years have ushered in a lot of change for me.
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