There are 3 things guaranteed in life: death, taxes, and inflation. All 3 of these things play into your estate and how you leave your hard-earned money to your heirs. Let's talk about each of them in more detail...
Death is not a fun conversation, but it is a part of life - whether you choose to realize it or ignore it. We as humans only have so much time on this earth. So the million-dollar question is... how do you keep your wealth alive for generations to come? This is crucial to include in your financial plan as it is one of the only outcomes that we can 100% guarantee to happen. Our clients sit down with their advisors and have deep, meaningful conversations about their unique desires for their money after they are gone. Our advisors can then work this into their financial plans to increase financial success.
Taxes can quite literally kill an estate plan. If not carefully planned and executed, your heirs can receive significantly less that what was originally planned for. Estate, inheritance, and gift taxes can erode a substantial portion of the wealth, leaving beneficiaries with less than intended. Without careful planning, such as utilizing trusts, charitable donations, and other tax-efficient strategies, an estate may face hefty tax liabilities. This can lead to forced asset sales, liquidity issues, and financial strain on beneficiaries - ultimately compromising the legacy of the client's wealth. At Paracca Wealth Advisors, we have had clients come to us that have worked so hard their whole life to save, invest, and plan but have overlooked the tax consequences involved with leaving an inheritance. We make it a priority to be tax-aware when planning your estate.
Inflation is often overlooked in estate planning, yet it can profoundly impact the long-term value of an estate. Over time, inflation erodes the purchasing power of money, meaning that assets designated for heirs may not hold the same value in the future as they do today. This can result in beneficiaries receiving less financial support than anticipated, potentially jeopardizing their financial security. At Paracca Wealth Advisors, we take a proactive approach to mitigate the effects of inflation. We incorporate strategies such as investing in assets that traditionally outpace inflation, adjusting estate plans periodically, and considering inflation-indexed investments to preserve the intended value of the estate over time.
If you or someone you know wants a second set of eyes on your estate plan, contact us at the number below. We would be happy to give you a free, no-obligation review of your estate plan.
