As baby boomers in Michigan grow older, asset protection and estate planning matters become increasingly important, and the good news is that now is an excellent time to begin estate planning.
When thinking about the preservation and protection of assets, there are a number of tools of the trade. For example, life insurance is a fantastic tool for transferring wealth to kids. A variety of life insurance policies are available to choose from, depending on a person's circumstances. But with any policy, the earlier it is purchased, the higher the return will be later.
There are also ways for boomers to access the equity they have built up in their homes. However, this can be tricky in the current economic climate, and with a struggling housing market, it is particularly important that Michigan estate owners speak with a professional who focuses on estate planning. If a homeowner does want to access the equity, one tool is a home equity line of credit, but this certainly is not the only option.
Another consideration when thinking about the near future is whether a boomer should put money in savings or investments. The answer to this question can change depending on how far a person is from retirement. Taking on too much investment risk late in life can be catastrophic, which is something too many investors learned in the latest recession.
With proper planning, boomers can be prepared for retirement, as well as pass down substantial assets to the next generation. In such cases, boomers will want to begin planning for estate administration, which may include identifying heirs, appointing an administrator and other legal actions meant to help with or avoid probate. Because of the sometimes daunting prospect of estate planning and asset protection in Michigan, obtaining the advice of an experienced estate planning attorney is typically the best first step on the path to a comfortable financial future for estate owners and their loved ones.
Source: Fox Business, "Financial Tips for Empty-Nest Boomers," Casey Dowd, Feb. 9, 2012