Estate Planning/Insurance and Annuities

Perhaps the most fundamental use of trusts as an estate related legal entity is to determine ownership and specific controls regarding the assets of the trust either during someone’s lifetime or following death.  While one element financial planning deals with portfolio investment management strategies during your lifetime, the Estate planning element takes into account taxes and legal control issues that arise upon death or disablement.  At August Financial Consulting, we encourage estate related planning discussions and can provide you with financial plan reports useful for further discussions with your accountant or attorney.  Some considerations and tools we employ -

  • Annuities – Often, with both investment and life insurance characteristics, annuities might be a good solution to provide a guaranteed income stream during your lifetime and an estate related “life insurance” benefit paid out upon your death.
  • Life insurance – depending on your specific financial situation and family needs following a death, life insurance established properly will give you the peace of mind to know that specific financial needs will be taken care of should something happen to you.  Typical needs to cover include:
    • Simply replace an income stream
    • Pay for children college costs
    • Pay down or pay off mortgage or other debt
    • Pay estate taxes
  • Detailed Financial Reports – Sometimes, a key resultant benefit for completing a financial plan is detailed financial reporting useful for your estate planning discussions with your attorney or accountant.  This includes:
    • Balance sheet information providing the big picture look at your estate and the various elements of your assets and liabilities. 
    • Detailed reporting of asset ownership, i.e., individual or joint ownership.
  • Clarity – Another benefit can simply be derived from the process of putting together the financial plan.  Our goal is to prepare you for a meeting with your attorney by assisting you in clarifying your own estate planning goals.