Estate Planning for the Worst Possible Scenario – The Death of Both Spouses While the Kids Are Young

The reason why some parents hesitate to make an estate plan is understandable. It calls into consideration your worst fears – the possibility of your death or your kids facing life without one or the other parent.

But what about an even worse scenario – the possibility that you and your spouse could die at the same time or in close succession by accident or illness. One might be reminded of the situation of actor Christopher Reeve and his wife Dana; Dana died of cancer within two years of her husband’s death and they left a teenaged son behind.

From the standpoint of individuals, planning generally gets done with the mindset that one parent will be left to raise any minor children and continue earning and investing for the family. But in reality, you both should consider a plan that accommodates the absolute worst scenario -- the loss of both parents and what would happen to your kids’ lives and finances if that happens.

Most financial experts advise you to revise your estate plan every five years or as lifestyle issues change. It’s important to get help for the financial aspects of your estate plan as well as legal instructions for the support, education and general well-being of your kids. Here are some general topics to explore with tax and estate attorneys as well as a financial planner:

Talk first about who would best raise your kids: This is clearly the most important decision you’ll make.

Learn More >>

As millions of Baby Boomers head into their retirement years, it’s surprising how few actually know that the government provides little more than a few weeks of financial support for home-based or nursing home care when the average person needs it for at least a year.

A 2006 Genworth Financial Survey says the national average private room rate at a nursing home – the most expensive care option – was $194.28 per day/$70,912 annually.

Long-term care insurance (LTC) may be one solution for those who need to bridge the gap between their savings and the actual costs they’ll face.

Determining and paying for long-term care is almost too complex a topic to be covered in a short article like this, which is why it makes sense to discuss your individual situation with your financial advisor.
Here are some of the questions you need to answer before investing in long-term care insurance or other options:

What resources do you have?   We’re not just talking about money here. While care giving puts a strain on family, it’s important to consider whether family and friends are truly willing and able to help with your care, which can provide a considerable financial and emotional benefit. Also, if you live in a community with reliable volunteer resources to help, that’s something to note, though today’s services may not be there tomorrow.

How old are you and your spouse and what’s your health history?   People in good health purchasing long-term care insurance at the age of 55 usually get the most affordable deal in LTC insurance.

Learn More >>

John Hayman is the owner of Capital Advantage, Inc., retirement planning and investment management specialists in Lafayette. He found VESTIA in 2005 when he and his employees were looking for a way to give to local families. He says, “I’m charitably inclined as I think most people are, but I don’t want to just give a donation to a big agency. I like to see my hard-earned money used in the community locally, and I told VESTIA that I wanted to be involved in what goes on. It’s different when you can see what your contribution means to a local family.”

“Everyone here has a family,” explains Aimee Schwartze, Capital Advantage’s Director of Client Services.

Learn More >>

Are you, or possibly someone you know, a director, volunteer or employee of a non-profit organization?

Capital Advantage, Inc. is experienced in managing assets for non-profits groups. We are growing and expanding our investment management services for non-profit organizations, also known as 501(c) 3 organizations. In today’s heavily regulated investment industry, non-profits, endowments, foundations and even company pension plans must adhere to strict investment policy guidelines, and individuals or investment firms managing assets must act as a fiduciary.

If you or someone you know works with a non-profit organization, please let us know. We appreciate your continued confidence in our firm and appreciate your referrals.