Suze Orman’s estate planning strategies can ensure that your assets are protected and your loved ones are taken care of.
Here are 10 essential power moves from Suze Orman’s estate planning advice:
1. Create a Revocable Living Trust
Suze Orman emphasizes that creating a revocable living trust is one of the most powerful estate planning tools.
This allows your assets to bypass the costly and time-consuming probate process and ensures they are distributed according to your wishes without delays.
You can consult with an estate planning attorney to determine if a revocable trust is right for you.
Better yet, save time and money by starting with a much less expensive, quicker online solution. We recommend checking out Trust & Will. Just as legal at a fraction of the price.
2. Fund Your Trust with Major Assets
Once a trust is established, Suze advises transferring significant assets into it, such as your home and savings accounts.
However, due to their unique regulations, keep your retirement accounts, like IRAs and 401(k)s, separate.
If you’ve got substantial investments, this might be a good time to get a second set of expert eyes for that as well. If you’ve got at least $100,000 in investments, check out a free service called SmartAsset. You fill out a short questionnaire and instantly get matched with up to three vetted financial advisors in your area, all legally bound to work in your best interests.
3. Draft a Will as a Backup
Even with a living trust, Suze stresses having a will to specify how your non-financial possessions should be distributed.
A will acts as a safety net to cover any assets not included in your trust. Most trusts have a will included as part of the package.
4. Designate a Guardian for Your Pets
Pet owners should include their furry friends in their estate plans.
Suze highlights the importance of appointing a guardian for pets to ensure they’re cared for in their owners’ absence.
5. Avoid Naming Young Children as Beneficiaries
Naming minors as direct beneficiaries can create complications, since they’re not legally able to own most assets.
Suze recommends setting up a trust stipulating how and when children can access their inheritance to safeguard their future.
6. Secure Your Retirement First
Before giving away assets, Suze urges individuals to prioritize their own financial security.
This step ensures you are well-prepared for a potentially long retirement, as today’s 65-year-old woman could live an average of 20 more years.
7. Update Your Beneficiaries Regularly
Life changes, and so should your estate plan. Suze stresses the importance of keeping beneficiaries on all financial accounts current to reflect your current wishes and circumstances.
8. Have a Durable Power of Attorney and Advanced Directive
Suze underscores the need for both a durable power of attorney and an advanced directive.
These documents empower someone you trust to make financial and medical decisions if you cannot do so yourself.
9. Seek Professional Guidance
Estate planning can be complex. Suze advises consulting an estate attorney to review your finances and help set up a comprehensive trust, even if the service has a significant fee.
Professional help can be invaluable in avoiding costly mistakes. If money is tight, or you simply want a quicker, simpler, but legal, solution, check out Trust & Will.
10. Revisit Your Plan After Major Life Events
Suze believes in regularly reviewing and updating your estate plan, especially after major life events like a marriage, divorce, or the birth of a child.
This step ensures your estate plan stays relevant to your current life situation.
Protect Your Legacy
Estate planning isn’t just for the wealthy; it’s for anyone who wants peace of mind knowing their loved ones are protected.
By following Suze Orman’s estate planning strategies, you can take control of your future and ensure your wishes are honored.
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