Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Estate Planning Advice
Old 10-29-2014, 03:56 PM   #1
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 171
Estate Planning Advice

I'm looking for some suggestions on how to find someone to "guide" my heirs when the time comes that I'm no longer around to handle finances.

A little background:

Both DW and I are 56
I'm semi-retired working part time and she will retire in a few years
DW will inherit everything, with 3 kids as secondaries
We each have a Will, POA, Healthcare Directives, etc
All retirement accounts are at Vanguard. We qualify for Flagship services.

I do all of the financial work for the family. I have a pretty good understanding of investing, taxes, insurance, etc. I actually enjoy finances and reading forums, books, magazines - you name it.

The problem is my DW, while a smart Accountant-type at work, has absolutely no desire to even discuss this stuff. I have to force her to take 5 minutes away from her IPad to look at a listing of our accounts (once a year). And I'm afraid my kids are even less into finances than DW is.

What's the best way to find someone that will guide them through things when I'm gone. Just inheriting IRAs, 401Ks, etc will be complicated enough and I'm afraid they'd make withdrawals mistakes that would end up costing them money. I guess I could write down all of the steps they need to take when the time comes, but it would be good if they had an individual that they could call.

Having said that, this might not even be needed for 20 years and I don't want to start paying someone money now when they might not even be around at the time when it's needed.

What have others done to prepare for when you're gone?
__________________

__________________
PatrickA5 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-29-2014, 04:03 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,418
I'm still working through this as well. Situation similar to yours - I handle it all and DW has little interest. I think DD (she's a CPA) will be helping DW if something happened to me. I have an "investment policy" document explaining our AA, tax efficient allocation, tax efficient withdrawal strategy, rebalancing approach, etc that they can use as a guide to understand why things are set up the way they are so they can continue on if I get run over by a beer truck (after the obligatory mourning period of course).
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 10-29-2014, 04:05 PM   #3
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,528
Fortunately DW is quite capable of handling all that on her own. While I do most of the day-to-day stuff she is firmly in the loop and knows exactly the current state of finances, where everything is, and the like.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 10-29-2014, 04:26 PM   #4
Thinks s/he gets paid by the post
RetireAge50's Avatar
 
Join Date: Aug 2013
Posts: 1,121
My wife also has little interest but would be perfectly capable to take over if I were to die or become a vegetable or something.

Even still I/we will be setting things up now so it will be basically be on auto pilot for the remainder of both our lives.

For example, pensions will be joint life, social security is what it is.

Portfolio automatically disbursed using formula Balance/(95-Age). Bulk of it managed by Wellesley and Wellington.




Sent from my iPhone using Early Retirement Forum
__________________
RetireAge50 is offline   Reply With Quote
Old 10-30-2014, 09:32 AM   #5
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
For my wife: There's a few friends and family members I use as a "sounding board" on financial matters - people I trust and have same philosophy. I have asked a couple of them if they would be part of an "advisory board" if/when I died. Reviewed this with wife and have a page in my files with names/contacts. Nothing official or legally binding, but I think enough to guide.

For my kids: That's a different story. Kids are in 20's. If both DW and I died in a plane crash, I don't feel comfortable with the above "sounding board".

What I'd like to do is define a lot more specifically (and probably legally) how the money would be managed and "distribution considerations" to kids (x% per year, conditions were distribution might be unequal, etc).

Does anyone have any detailed, specific "principles" they've used that they can share ? I know "get a lawyer" - before that I want to have a detailed list of desires and principles that they can legally execute.
__________________
Delawaredave5 is offline   Reply With Quote
Old 10-30-2014, 09:55 AM   #6
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 1,581
I would set up a trust (revocable living trust), with a good knowledgeable person as your trustee. That person could be related or could be a friend or I think your idea to write down some basic instructions is helpful, it is better than none.

If your kids are not wanting to learn or just not interested, the trustee can make sure they have guidance and controls to maximize the inheritance benefits.
__________________
After Monday & Tuesday even the calendar says, W-T-F...

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/16 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 10-30-2014, 11:45 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
Quote:
Originally Posted by 38Chevy454 View Post
I would set up a trust (revocable living trust), with a good knowledgeable person as your trustee. That person could be related or could be a friend or I think your idea to write down some basic instructions is helpful, it is better than none.

If your kids are not wanting to learn or just not interested, the trustee can make sure they have guidance and controls to maximize the inheritance benefits.
+1, that's what I'd suggest too. Same thing my parents have done...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 10-30-2014, 02:57 PM   #8
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,807
Quote:
Originally Posted by Delawaredave5 View Post
For my wife: There's a few friends and family members I use as a "sounding board" on financial matters - people I trust and have same philosophy. I have asked a couple of them if they would be part of an "advisory board" if/when I died. Reviewed this with wife and have a page in my files with names/contacts. Nothing official or legally binding, but I think enough to guide.

For my kids: That's a different story. Kids are in 20's. If both DW and I died in a plane crash, I don't feel comfortable with the above "sounding board".

What I'd like to do is define a lot more specifically (and probably legally) how the money would be managed and "distribution considerations" to kids (x% per year, conditions were distribution might be unequal, etc).

Does anyone have any detailed, specific "principles" they've used that they can share ? I know "get a lawyer" - before that I want to have a detailed list of desires and principles that they can legally execute.
We set up a trust with the kids as beneficiaries. My sister is the executor.
We structured things so that their expenses through college are paid by the trust (via the executor.)
They get a cash bonus upon graduating college.
They get 1/3 of the inheritance on their 25th birthday.
They get the next third on their 30th birthday.
They get the final third on their 35th birthday.

We did this for a few reasons. My husband observed a friend divorce her husband 1 month before inheriting a trust. Her mother, the husband, and all her friends were stunned by this. She promptly blew through all the money. She said she knew he'd want to save it and invest it - and she felt entitled to party. I observed a coworker inherit a big chunk in his mid 20's. He was quite the party guy - and it was gone in less than a year. It's amazing he survived... but he definitely killed brain cells.
Both of these people seemed normal/rational... but a large inheritance at a young age, with no restrictions can cause a normal rational person to go off track. We wanted to avoid that for our kids.

We're hoping we're around when they turn 35... so this is all moot. But if we get hit by the proverbial bus... the trust is structured this way.
__________________

__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Planning vs. over-planning for retirement ER Eddie Life after FIRE 49 11-09-2013 07:04 PM
Advice, Advice and More Advice flyfishnevada Life after FIRE 18 06-26-2010 06:44 PM
Advice on Estate Planning Services headingout Other topics 3 01-03-2010 12:41 PM
Please Do Estate Planning..................... FinanceDude FIRE and Money 17 09-12-2006 07:21 PM
help with estate planning QT Other topics 30 12-21-2004 02:11 PM

 

 
All times are GMT -6. The time now is 06:56 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.