MAKING CENTS: Review estate plans now, rest in peace later

Talking about the follies of wealthy or famous people is so popular that even the lousy estate plans they leave make headline news. Think about all the celebs, like James Gandolfini, who have left a mess for their children and other loved ones.

Very few, on the other hand, are motivated by these stories to get their own estate plans in order.

The truth is that the overwhelming majority of those reading this right now have an estate just as messy as the celebs.

I won’t get too nerdy on you and throw around code sections or advanced estate planning topics, but rather the basics that everyone needs to button down and keep current.

The first issue is to ask whether you even have a will, trust, durable power of attorney and a health-care power of attorney. All but the trust is needed for even the simplest of estates. A trust becomes more important if there are any matters that may need further guidance or attention after your passing, such as managing money for minor children until they are capable of receiving it. Another reason for trusts may be your desire for privacy and avoiding your state’s probate process.

Sometimes a will or trust that is very old is as dangerous as not having one at all. Provisions may be outdated or superfluous, and badly in need of updating. For example, are you sure that your former spouse is not named in any of the documents? Is it set up to minimize both federal and state death taxes? Are people named as executors or trustees no longer significant in your life or not even living?

Beyond your documents, you should look at how you own property. For example, if you own an inherited rental property jointly with rights of survivorship with your brother, and you pass away; guess what happens? Your brother gets the entire property regardless what your will says.

Similar problems can occur with improper beneficiary designations of your retirement accounts, annuities or life insurance policies. It is very easy to change beneficiaries, but you must take action.

The good news about having a lousy estate plan is that you’ll never know what a mess you created. The bad news is that your heirs will have this experience as one of their last memories of you. Estate plans need to be reviewed every five years or more often. Unfortunately, this is one element of your financial plan that you don’t know when you’ll need, so time is of the essence.

Family & Golf – Now that is summer

Guest post

- Alex Weiss

As some of you may know, I come from a very large family. Recently one side of the family along with most of my brothers and sisters made the annual pilgrimage to the family reunion. This year we tried a new location in Ocean Isle, NC. This was about a half hour north of the golf mecca, Myrtle Beach. 

Prior to getting to the big event, I volunteered myself, my car, and my sanity to drive a sister and her two children, Gabe age 2 and Madison age 3 ½ from Boston to NC. Why I did this – nobody knows – but I did it nonetheless. I learned a lot on that drive and will always keep the following lessons with me. 

#1 – Road trips with young kids require extra time; A lot of it. My brothers and I could have done the same trip in 13 hours. This one took 20 between bathroom and feeding breaks!

#2 – When a child wants to do something, they will. This includes listening to the same song or movie over and over and over again.  

#3 – I love/appreciate my parents more now than ever. Over the years, they had to deal with all of that and multiply it by how many kids!? I also now think my mother must be lying to me when she calls me ‘her angel’ (sorry Mom).

Once we got down to Ocean Isle we hung out with the family at the beach, dinner, restaurants, and one of my favorites – the golf course. I am not very good at golfing but I have that one good shot per hole that keeps me playing. While trying to find tee times, one of my brothers found this golf app on his iPhone called, GolfNow. If you put in your location, date, time, and price range it shows you where there are discounts at local courses. I believe the golf courses do this just like HotWire does for hotel rooms to just fill the tee time, especially during slower times. We got 18 holes with a cart for $13! What a deal!

While we were driving, the chaotic ride down that tested my sanity and patience, and I wondered if I’d do it again. But the family reunion was so fantastic, that I already made plans to drive my sister and her two (hopefully only two)kids back next year. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Alex Weiss is a registered principal with and securities offered through LPL Financial. Member FINRA/SIPC. He can be reached at 781-849-9200.

MAKING CENTS: Why get your financial house in order?

Perhaps the most common reason for the gaping holes in one’s financial plan is the lack of focus on what you are trying to accomplish. Why get your financial house in order?

During the course of my week as a financial professional, we frequently see people with gaping holes in the financial plans. Some have no wills, some have poorly constructed portfolios and others are severely

underinsured. Rarely are they flying solo; often there is the typical collection of professionals such as lawyers, accountants, brokers and insurance agents who have advised on their particular subject matter. So why the gaps?

It may be as simple as the lack of communication from one professional to another. Every expert simply does his thing without knowing what the other experts are doing or thinking about recommending to the client. Even for simple situations, a little collaboration may go a long way toward improving the odds of achieving your financial dreams and goals.

Fear is another cause for gaps in financial plans. Some people are simply afraid to hear the cold hard truth. Whether it is an insurance person suggesting that you may be underinsured or the investment professional suggesting that you add regularly to your accounts, fear of making the wrong move often paralyzes progress. To mitigate your fears, learn more about your choices to make an informed decision and understand the consequences of making no decision.

Perhaps the most common reason for the gaping holes in one’s financial plan is the lack of focus on what you are trying to accomplish.

For example, if your goals include educating children or grandchildren in the event of your premature demise, you may want to listen more carefully to the insurance recommendation. Similarly, if you want your business to survive to the second generation, you may need to engage with your insurance agent, accountant and attorney.

Take a few moments, and list out your goals. Start with some looking you right in the face, such as college expenses, your replacement windows or home painting. Get a good handle on the quantitative financial issues that you need to solve with a timeline for when.

Beyond the quantitative goals, start to look at the qualitative side of your life with an open mind. Develop a realistic vision of how you want to spend your time, and what is most important to you. The hope for you is that each of these categories will spark emotions strong enough to get you moving in the right direction to eliminate the gaps in your financial plans.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. John Napolitano is a registered principal with and securities offered through LPL Financial. Member FINRA/SIPC. He can be reached at 781-849-9200.