Maximize Your Financial Legacy: Why Combining Financial and Estate Plans Matters

By Mofoluke Keshinro TEP

As the year draws to a close, it’s an opportune time to reflect on the progress of your financial goals and chart a path for the future. At ARM Trustees, we understand that wealth management is not just about the present but also about securing your legacy for the future. That’s why we’re here to shed light on the vital synergy between your Financial and Estate plans. In this article, we will explore a critical aspect of your financial well-being – the fusion of your financial plan with your estate plan and how ARM Trustees can guide you toward financial peace of mind.

Financial Planning vs. Estate Planning: What’s the Difference?

Let’s start by clarifying these terms:

Financial Planning: This is about shaping your financial present. According to the Cambridge Dictionary, Financial planning is the act of making decisions about how you should manage your financial arrangements. It involves setting budgets, saving, and investing to reach your goals, whether buying a dream home or funding your child’s education. With financial planning, an individual would assess their current financial goals and review the books and investments to meet their set objectives at the time.

Usually, a financial planner is your guide to achieving your short and long-term financial goals. They focus on optimizing your financial present by creating budgets, savings strategies, and investment plans. However, they might not delve into the intricate legal aspects of your financial affairs, as that’s where an estate planning expert comes into play.

Estate Planning: On the other hand, Estate planning is about securing your family’s future by thoughtfully arranging asset distribution, ensuring your loved ones are cared for, and preserving your wealth. Estate Planning is the transfer of assets in anticipation of incapacitation or death. This process aims to preserve the maximum wealth possible for the desired or intended beneficiaries. So, it involves making decisions about health care during incapacitation and who gets what from your assets.

An estate planning expert, typically a lawyer, plays a pivotal role here. They assess your current situation and contemplate worst-case scenarios to draft comprehensive estate planning documents. These documents aren’t just about asset distribution; they’re about preventing disputes, and discontent among beneficiaries, and safeguarding your assets. The objective is to ensure a seamless execution of your wishes as outlined in your estate plan.

Why Both Are Vital:

While distinct, both financial and estate planning are crucial. Why? Because they contribute to your peace of mind. A sound financial plan reassures you that your goals are on track, while a robust estate plan ensures that, in case of unforeseen events, only those you desire have access to your assets.

Remember, these two areas are complementary. A well-structured financial plan, harmonized with a comprehensive estate plan, is your ticket to financial security and peace of mind. In short, your financial planner focuses on the here and now, while your estate planning expert addresses the enduring legacy you wish to create. Both are equally significant for your overall financial health and peace.

Why Should You Combine Your Financial and Estate Plans?

Simplicity and Clarity: By merging your financial and estate plans, you’re simplifying things for your family. They will not need to navigate multiple documents or juggle advice from various advisors during challenging times.

Asset Control: With a combined plan, you regain control over who makes decisions on your behalf if you can’t and who inherits your assets. This way, you avoid the state determining your asset distribution.

Your estate planning practitioner and your financial planning advisor should work together to prepare a comprehensive and well-integrated document for you. The final document must contain details regarding medical emergencies and how the funding will be done, lifestyle maintenance in retirement, education and welfare of children, funding of charitable objectives, the appointment of guardians for children who are minors, and how to settle Probate fees or Estate Duty.

Take Action Today for a Secure Tomorrow

At ARM Trustees, we strongly advise merging your financial and estate plans. This ensures a holistic approach to your financial well-being and legacy preservation. Our expert team of financial planners and estate planning professionals can help you create a comprehensive document tailored to your unique needs.

These plans require periodic checks to stay in sync with your evolving goals. We can set up a schedule for regular reviews, whether quarterly or semi-annually, based on your preferences and the nature of your assets.

Contact us at ARM Trustees, and let’s combine your financial and estate plans for a brighter financial future. Take control of your legacy and achieve peace of mind.

Interested in setting up an Estate Plan today? Contact us or send  us an email to [email protected]

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