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LIDO INSIGHTS | Estate Planning: How to Start Preparing Now

Published 10-04-2021

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Jenna Glassock, Esq.

We all live busy lives and want to enjoy the often little free time that we get. Discussing your potential future incapacity, your death, and taxes is not – for many people – the most enjoyable way to spend that time. However, taking a little time to plan now can help protect you and your loved ones from significant difficulty and expense in the future.

Estate planning – preparing documents such as revocable living trusts, wills, powers of attorney, and health care directives, among others – is not often discussed over the course of our lives and remains a fairly opaque concept to most people. Whether you are an amateur or an expert, it is helpful to know: Where should you start?

Incapacity Planning

An important, and often underemphasized, element of estate planning is incapacity planning. Incapacity planning involves deciding now, while you can, who you want to be in charge of your financial and health care decisions in the future if you lose the ability to control those decisions yourself.

Post-Death Planning

Post-death planning typically consists of a revocable living trust and/or a last will and testament. These documents allow you to determine how your assets are distributed at your death and how those assets are protected, if at all, for your beneficiaries. For parents of minor children, this is often also where guardians are nominated. A revocable living trust allows the surviving family to avoid the probate court when distributing someone’s assets whereas a Last Will and Testament needs to be probated.

Tax Planning

There are a number of strategies that can be used in a revocable living trust, with irrevocable trusts, and with business entities to try to maximize the amount of assets passed on to your beneficiaries during your life and at your death while minimizing the impact of taxes and fees. For many of those strategies, there is a significant benefit to starting early to allow these assets to grow as much as possible during the remainder of your life.

Getting Started

A good first step is always to reach out to your Lido advisor, who can put you in touch with a member of Lido’s estate planning department to walk you through what may be the best fit for your specific situation. If you already have an estate plan in place, you should review it every 3-5 years to ensure that it still fits your needs. Estate planning should always be done with the assistance of a licensed attorney, so please reach out to your advisor if you would like a referral to an attorney in your area.

The information herein is not legal, such as trust or estate planning, advice, or tax advice. Any such information is provided for illustrative purposes only and must not be relied upon without the benefit of the advice of your lawyer and/or tax professional. Lido specifically disclaims any liability from any reliance on such information. Lido is not a legal service provider or tax professional and does not offer legal or tax advice. Should you desire to obtain tax or legal services or advice, you must enter into your own, independent engagement agreement with a licensed attorney or tax professional.

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Lido Advisors, LLC is an investment advisor registered with the Securities & Exchange Commission. SEC registration does not denote competence, ability, or expertise.  As an SEC-registered advisor, we are required to publicly file certain information with the SEC as well as furnish or provide you with the opportunity to obtain information about our principals, employees, products, services, and fee schedules.  Please review our Form ADV, which provides this information, at adviserinfo.sec.gov, call us at (310) 278-8232, or mail us at 1875 Century Park East, Suite 950, Los Angeles, CA 90067 for a copy of our Form ADV.

The future is uncertain and cannot be predicted.  Past performance is not indicative of future performance. These materials are provided for informational and illustrative purposes only and should not be relied upon as the basis of an investment decision. You should not construe this as investment advice or an offer to buy or sell securities.  All content herein has been obtained from sources deemed to be reliable, but is subject to unintentional errors, omissions and changes without notice, and is not warranted as to its accuracy or completeness. You should not rely on the information contained herein, and should rely solely on, and carefully read, the appropriate offering and related subscription materials relating to any specific investment before making a decision to invest.

Not all investments are suitable for all clients. Investing carries a risk of loss, including the complete loss of principal. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will be profitable or suitable for your financial situation or risk tolerance.  Any references to projected or future expected returns or risk are not guarantees, promises, or assurances that these outcomes will be achieved.  Before investing, you should seek financial advice regarding the appropriateness and suitability of the contemplated investment as not all investments are suitable for all investors.

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