Hitting the Curve Ball: Planning for Those Changes Life Throws at You
4/06
Every so often something unpredictable happens in each of our lives. It could be something fantastic such as falling in love, getting married or having children. It could also be a devastating tragedy such as illness, disability or death. One of life’s certainties is that we cannot truly predict the future. However, with proper planning, we can assert as much control over our futures as humanly possible.
Marriage is one of the first major life changes that most people experience. In a legal and financial context, marriage raises many issues. This is particularly true when individuals have previously been married. Sitting down with a financial planner or insurance planner is a great first step in taking control of your future. Reviewing your Estate Planning objectives with an attorney is another good idea for those considering marriage. There may be circumstances where title to real estate should be changed into joint name so, in the event of a death of one spouse, the surviving spouse is not living in a home co-owned by his or her in-laws. In some families, the opposite may be true, particularly in second marriages where children of a prior marriage may be your intended beneficiaries. Each family’s circumstances are different and it is imperative that you properly plan for unexpected scenarios.
Having children is, in most cases, not an unexpected event; however, it is always a major life change that raises many issues that should be considered by new parents. In addition to financial issues such as supporting your children and saving for college there are also legal issues such as naming Guardians and Trustees to care for your children and manage your assets in the event of an untimely death. Having children is a huge trigger for people to establish relationships with financial planners, insurance planners and attorneys. A financial planner can assist you with issues such as budgeting and setting up the proper accounts to hold and invest money set aside for your children. An insurance planner will discuss the extremely important topics of what life insurance and disability insurance programs are most suitable to fit your needs and ensure your family is protected. Attorneys can assist in structuring your Estate so that the individuals you want to care for your children and manage their assets are in place instead of an unwanted person who may be appointed by the Court.
Disability is typically one of life’s most unexpected changes. Unlike death, which we all eventually face, disability generally sneaks up on people or takes them completely by surprise. Disability usually makes a far greater negative financial impact on a family than any other major life change. If you are working and have a young family, just think of what would happen if you were disabled and no longer able to work. If you are self-employed, the negative impact of a disability would be far greater. Not only would you not have any income coming in, your business could fall apart in your absence. Obtaining disability insurance is an absolute must if you fit into one of these categories. As you get older, long-term care insurance will often take the place of disability and life insurance in a sound insurance plan.
Death is the last of life’s major changes that, obviously will impact your family more than it will impact you. Again, proper planning is imperative if you want to make sure your family is protected and that your Estate Planning objectives are carried out. Life may throw you some curve balls; however, if you plan properly, you can handle everything thrown at you and perhaps, even hit a few home runs.