Preserving Your Legacy Through Principled Estate Planning

As you worked hard to build your wealth, you naturally want to ensure it benefits your loved ones and the causes important to you. However, the thought of estate planning can seem overwhelming. Where do you start? How do you navigate the complex rules? At GPS Wealth Management, we’re here to help simplify estate principles so you can move forward with clarity and confidence.

The Building Blocks of an Estate Plan

Your estate encompasses all your assets – investments, cash, property, businesses, and personal items. A proper estate plan aims to manage and preserve these holdings both during your lifetime and after passing away. It also enables you to provide for family members according to your wishes. Starting the planning process sooner allows more time to build and adjust your strategy as needed.

Laying the Foundation with a Will

A will is the legal cornerstone that underlies your entire estate plan. It designates who will be responsible for settling your affairs as the executor. It also names a guardian to care for your minor children and specifies how you want your assets distributed to heirs or charitable interests. Without a valid will in place, state laws dictate what happens to your estate through probate – an expensive and public process your loved ones will have to navigate.

The Supporting Estate Documents

In addition to a will, other critical documents can help comprehensively govern your estate.

Financial documents provide a pathway for managing your assets if you cannot make decisions:

• A durable power of attorney authorizes someone you trust to handle finances and legal matters
• Joint ownership arrangements enable the transfer of accounts or property to a co-owner without probate
• Living trusts can facilitate the distribution process by avoiding probate altogether

Healthcare documents ensure your personal preferences are honored regarding medical care:

• A living will provides specific instructions about your desired treatments
• A medical power of attorney designates someone to make healthcare decisions on your behalf

Tax-Efficient Giving Strategies

Federal estate taxes have existed since the 1700’s, originally designed to raise funds during times of crisis. Today’s exemption amount allows individuals to transfer over $12 million tax-free to heirs before the 40% estate tax applies.* There are legal ways to gradually reduce your taxable estate over time, such as gifting assets within the annual gift tax exclusion limits. We can also guide you through other tax-efficient strategies based on your specific situation.

How Life Insurance Helps Safeguard Your Plan

Life insurance can serve the dual purpose of providing for your loved ones and covering potential estate taxes. An irrevocable life insurance trust is one trust strategy that can help leverage life insurance within your overall estate plan. The insurance proceeds are received tax-free and managed for your heirs’ benefit.

Your First Step: Partnering with GPS Wealth Management

Estate planning encompasses several moving parts, that’s why it’s so important to have a caring partner by your side from the start. Our priority is thoroughly understanding your objectives, the full scope of your assets, and who you want to benefit from your diligent efforts over the years.

With that foundation, we can work together to build an estate roadmap that helps provide you confidence in your decisions. One that simplifies the complex through proactive guidance and personalized solutions to help achieve your goals and protect your legacy for generations to come.

Your life’s work is worth protecting. Get started preserving your wealth by scheduling an estate planning consultation today.

*These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A. an affiliate of LPL Financial.