Estate Planning with Rachel & Lillie Nkenchor
On this episode of Financially Naked: Stories from The Financial Gym, our host is Rachel Adaline, HR Manager at The Financial Gym. Our special guest today is Lillie Nkenchor, an experienced estate planning professional with over 14 years of expertise in the field.
In this episode, we're shedding light on the sensitive but important topic of estate planning. Many of us may have heard the term before, but what exactly is it? Do you need to be rich to have an estate plan? When should you consider hiring a professional to assist you with this process? And what are the common challenges that arise when it comes to estate planning?
Lillie is here to share her vast knowledge and insights, as she has dedicated her career to helping others navigate the complexities of estate planning. We'll discuss the basics surrounding this essential aspect of personal finance, providing you with advice and actionable steps to protect your assets and ensure a smooth process for your loved ones.
Podcast Notes
What is estate planning?
In the most basic terms, estate planning is the orderly distribution of your assets. It's putting the vision you have for your assets into writing. It's the umbrella term for several different documents and processes.
There is a misconception that estate planning is only for wealthy people, but that's not true. If you have any assets, an estate plan ensures:
Your assets are left to those you want.
Any debts you have are planned for
Who will take care of your children under 18 or adults with special needs
Wills and trusts are part of the estate planning process. They're tools to help you achieve the goals you have for your estate.
Three primary documents cover the essential basics if you're just getting started.
A will - this is the basic document everyone should have. It states who you are, your family members, how to pay debts, and how to distribute the remaining assets. A will allows your family to get necessary documents/paperwork from the court to handle logistics.
Power of Attorney - This document states who can make legal and financial decisions for you if you're still living and you cannot do so for yourself.
Health Care Proxy - This document states who can make medical decisions for you if you're still living and you cannot do so for yourself.
Should I hire a professional to help with estate planning?
You can use online tools to DIY the estate planning process. These aren’t perfect, but they’re better than nothing. If time is of the essence and you don’t have the means to hire a professional, an online tool is a good starting point. These documents tend to be pretty boilerplate, but they are good enough.
It can be very beneficial if you have the time and money to speak with an attorney. Where an online program assumes you already know what you need, an attorney will speak with you, gear you, answer your questions, and guide you through the process. They will get in touch every few years to ensure things are up to date. Once you pass away, your attorney can support your family and hold their hands. You will not get any of that with an online program.
If you’re working with an attorney, you do not have to have everything figured out. Show up as you are and have a general idea of what you want to accomplish. They can guide you through the rest.
You can take care of some things on your own without an attorney. If you have life insurance, a 401k, or other investment accounts, you name a beneficiary right in the account. Take some time to regularly review these beneficiaries.
What are the challenges that come with estate planning?
Planning is emotional and is often done in secret. It can be tough to think and plan about a time when you won't be there. There are tough decisions that have to be made.
Death and assets can change a family dynamic very quickly. Your family may be surprised about your choices if you don't communicate with them.
You do not have to tell everyone everything, but share the information with those who need it. Tell them you created your will and did it with intention and want them to respect your decisions.
Ensure your loved ones can handle the gifts you're giving them. If you want to keep the house in the family, ensure there is a plan to pay for it. You don't want to leave your loved ones with a mortgage or property taxes that they can't pay for or aren't expecting.
Estate planning is the last few paragraphs of your story, don't just assume your kids will take care of it. Estate planning is a way to empower your family to honor your last wishes with ease during a challenging time in their lives.
If you want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.
Resources
Connect with Lillie
Website: www.lillienkenchor.com
Instagram: @lillie_nkenchor_pc
Linkedin: Lillie N. Nkenchor, Esq., LL.M.