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What Is Your Goal for Heirs?

Many clients want to leave a legacy, not just save for a comfortable retirement.

If you ask most people what their most valuable assets are, they usually say their homes, or their jobs. However, if you ask them to think about it a little more, the answers change and become more focused on people and relationships. As couples and individuals work to generate assets for their retirement and enjoyment, they start to think about the kind of legacy they want to pass to their heirs, says Think Advisor in the article “Annuities and Heirs.”

For many, the ability to leave loved ones with significant financial support is a top priority. This requires good estate planning.

Estate planning can be complex, and the laws do change. Understanding how legacy planning aligns with retirement planning is an important concept.

How do you successfully transfer wealth to the next generation?

The most common approach is to have no strategy at all. This never works well, and usually leads to an expensive estate administrative process, legal battles between heirs, high taxes and the likelihood that the inheritance will evaporate rapidly.

One legacy transfer strategy involves the use of annuities. Because these contracts come in all shapes and sizes, it’s important to understand how these investments work. Annuities purchased for wealth transfer can be set up as income streams to children or grandchildren, especially if they have stretch capabilities. Some annuities allow for greater access to principal than others, and many are designed specifically for wealth legacy planning.

Some of the control levels include:

  • Beneficiaries may choose the method of payout, from a lump sum to various withdrawal strategies.
  • A portion may be paid as a lump sum and the remainder offers a few withdrawal choices.
  • A lifetime stream of distributions is set up for a beneficiary, based solely on the client’s direction.
  • The lifetime distribution is in effect, but if the owner wants to make a change, they can be rescinded. This can only be done with certain annuities. With many annuities, once it is set, there are no changes permitted.

Talk with your elder law attorney about the kind of legacy you wish to create for your heirs, and what methods and tools they believe will accomplish your goals.

Reference: Think Advisor (Aug. 6, 2019) “Annuities and Heirs”

Hear From Our Clients
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I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

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Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

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Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!

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