Create Your Family Plan
By Luma Wealth on September 15, 2020
One Size Does Not Fit All
Families come in all shapes and sizes, and there is no ‘one’ wealth plan that works for all.
These days fewer than half (46%) of children in the U.S. live in a traditional household, defined by Pew Research as two heterosexual parents in their first marriage (versus 73% in 1960).* Families are different, and each needs a financial strategy built around their circumstances and goals. For example:
Stepfamilies. If you will be celebrating National Stepfamily Day on September 16th, estate planning may be a little more complex, as you need to decide how the assets should flow from your estate. With a marital trust, your assets transfer first to your surviving spouse while a family trust would allow you to name multiple family members as beneficiaries. This is often a significant consideration for spouses with children from a prior marriage. In addition, periodically checking the beneficiary designations on your life insurance, retirement and other accounts can help ensure your legacy goals are met.
Unmarried couples. Marriage is a legal contract that offers protections and tax breaks to married couples. For example, married spouses can direct the medical care for one another if incapacitated. And when one spouse passes away, the survivor automatically inherits a portion of the estate (rules vary by state and circumstances). Many of these privileges do not legally extend to unmarried couples, making estate planning and tax planning integral to wealth planning.
Single-parent families. If you’re the sole provider for minor children, insurance strategies can help you manage risks. Life and disability insurance can provide the cash flow needed to cover everyday expenses and schooling through adulthood if something unexpected were to happen to you. Umbrella, property and casualty insurance can protect your assets. In terms of estate planning, naming a guardian and putting a trust in place can help protect your family from the unforeseen.
Your Luma Wealth advisor gets to know you and your family to create a customized wealth plan appropriate to your circumstances and goals. We’re focused on your Wealth & Wellness, with events to help you be your best. Please join us, and bring a friend!
