Consider Making an Estate Check-Up a Multi-Generational Family Matter

Questionable estate planning has gotten some recent attention with the sudden death of actor Heath Ledger. The 27-year-old actor died suddenly this year with an older will that provided only for his parents and other immediate family – he never revised those documents to accommodate his young daughter or the child’s mother.

Though Ledger’s parents told the media that the daughter and mother would be fairly provided for, that’s not the same thing as a solid estate plan that leaves nothing to chance. And if Ledger’s death offers a lesson, estate planning should be done at the earliest point in your life that you start to gather assets and responsibility for others.

In estate matters, it’s a good rule of thumb to review your plans every three years or whenever there’s a material change in your family’s lifestyle – a marriage, a divorce, a remarriage, the birth of children, the loss of an immediate family member or a major rise or fall in assets. Those are the biggies.

For individuals and couples with elderly parents and/or young kids starting out on their own, it might be smart to do a multi-generational estate checkup at the same time. Why? Because in families with significant assets or other pressing financial issues involving businesses or dependents, each generation’s wishes for the dispersal of shared or personal assets should be documented legally and shared with all the relevant parties.

Q: What are some of the multigenerational issues in estate planning?
A: In some families, this may mean the future of a multigenerational family business, perhaps one of the most complex estate issues any family will face. In others, the assets may consist mainly of cash, property and other investments, but similar problems can occur when all the parties aren’t on the same page about who will get what.

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It really doesn’t take much to derail a retirement plan. Most of the errors in planning for retirement are those of neglect, omission or panic. If you don’t know exactly where your retirement plan stands, get some advice – a Certified Financial Planner™ (CFP®) professional is a good start – to review your overall retirement options and give you some ideas where to start.
Here are some common mistakes people make:

Failing to start: It is amazing how many people find so many excuses never to start retirement savings. But no matter how daunting debt or other spending priorities seem, you have to save for retirement on a regular basis, even if it’s only a cursory amount. Over time, those small assets will grow to something considerably larger.

Failing to link planning for your at-work and personal retirement portfolios: One of the critical problems in retirement planning comes from failing to treat the investments you make at work versus the ones you make independently as a unified whole. Working with a financial planner can help you look at every place you’re putting your money and find out if you’re implementing those assets in the right way.

Failing to evaluate a prospective employer’s retirement options: Benefits can be worth as much as a nice paycheck. It’s possible you might be working for a company that still offers a traditional defined pension benefit plan in addition to a 401(k) plan. If you think you’re going to get an offer, it’s wise to interview prospective employers on the benefits side of what they’re offering you – particularly the timeframes on when those various benefits kick in. Above all, company matching of any assets you place in your retirement funds is key as well as the vesting period for making those assets your own.


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Capital Advantage, Inc. specializes in Retirement Planning. If we have not already completed your retirement plan, please contact us.

No matter if you are years from retirement or already enjoying retirement, engaging in a financial planning relationship with our advisors can help you craft your personal financial plan and can help to make your retirement a time of personal growth and opportunity that balances your immediate financial concerns with dreams for the future.

For many people, retirement can last as long as time spent working. You need to make sure that you will not outlive your retirement income, and consider factors such as inflation, investment performance and appropriate withdrawals. We can help you identify the sources of income that will be available to you in retirement, and together, we can help you plan ongoing savings or withdrawal strategies that will make your money last.

Whether you have just entered the workforce or you are getting ready to leave, retirement planning should always be on your list of financial priorities. Capital Advantage, Inc. can help you make saving for retirement a part of your overall financial picture.