In a powerful financial discussion, Joe Anderson and Alison Ali outlined the key components of a solid estate plan and highlighted the risks of leaving things to chance. Whether you’re 35 or 75, have a small condo or multiple properties, a smart estate plan ensures your family is protected, your wishes are honored, and your assets are transferred efficiently.

Here’s what every household needs to know.

1. Why Estate Planning Matters More Than You Think

More than 70% of Americans have incorrect or missing estate plans. That means their assets will be sorted through probate—a public, expensive, and slow process that affects over 3 million people each year and costs an estimated $2 billion in fees.

Worse still, some estates lose up to 50% of their value due to taxes and legal costs.

Creating an estate plan now helps:

• Bypass the court system
• Keep your affairs private
• Save your heirs time, money, and confusion

2. Wills vs. Trusts: Know the Difference

A will outlines who gets what—but still goes through probate.

A trust avoids probate altogether. It lets you:

• Transfer assets privately
• Handle complex family situations (like blended families or businesses)
• Provide flexibility and protection beyond death

Don’t forget the paperwork:

• Power of Attorney for finances
• Healthcare Directive for medical decisions
• HIPAA Authorization to grant access to medical records

3. Common Estate Planning Mistakes

Avoid these pitfalls that can derail even the best intentions:

• Dying without a plan (intestate) leaves everything to the courts
• Relying only on a will when a trust is needed
• Not funding a trust—if your assets aren’t titled correctly, the trust doesn’t work
• Giving away property before death, triggering avoidable capital gains taxes
• Joint ownership mishaps, such as assets going to unintended beneficiaries or being seized by a co-owner’s creditors

Regular updates are critical—especially after marriage, divorce, a new child, or buying property.

4. Planning for Your Children’s Future

Estate planning isn’t just about money—it’s about people.

For parents, your plan should include:

• Guardianship instructions for minor children
• How and when funds should be used (e.g., education, housing, health)
• Naming trustees or guardians who are responsible, capable, and ideally local

Don’t assume kids want to keep the house. Clarify with them now, and document your decisions.

5. Update Every 3–5 Years

Tax laws change. So does life. That’s why Alison recommends reviewing your plan every few years or after major events like:

• Marriage or divorce
• A child turning 18
• Buying or selling a business
• Inheriting money or property

Your plan is only as good as its last update.

6. Everyone Has an Estate Plan—Even If You Don’t Write One

As Alison noted, if you don’t make an estate plan, the state has one for you. That often means:

• Delayed distributions
• Higher legal fees
• Misaligned outcomes (e.g., ex-spouses or distant relatives inheriting your assets)

Creating your own plan ensures you—not the courts—decide what happens.

7. Powers of Attorney and Healthcare Directives

These documents are essential while you’re still alive but unable to act:

• Financial Power of Attorney: Who manages your money if you’re incapacitated?
• Healthcare Power of Attorney: Who makes medical decisions?
• Living Will: What are your wishes for end-of-life care?

You can set these to activate immediately or only upon incapacity (“springing”). You can also require multiple agents to act jointly.

8. Don’t Forget Your Digital Assets

Your estate plan should include instructions for:

• Cryptocurrency wallets and NFTs
• Email and cloud storage
• Social media accounts (e.g., Facebook legacy contacts)

Without clear directives, these assets could be lost forever—or fall into the wrong hands.

9. Talk to Your Family—Before It’s Too Late

Discussing estate plans can feel uncomfortable—but silence causes more problems.

Make sure your loved ones know:

• What your plan includes (not necessarily dollar amounts)
• Where your documents are stored
• Who your attorney, trustee, or executor is

Clarity now prevents chaos later.

10. Including Pets in Your Plan

Yes, you can—and should—plan for your pets.

Designate:

• A guardian who is willing and able
• A trust or account to cover their care
• Specific instructions for medical needs and routines

Joe noted that some people leave entire estates to pets. You don’t have to go that far—but make sure they’re not forgotten.

11. Understand What Happens to Pensions and Annuities

Not all pensions and annuities pass on to heirs. It depends on the structure:

• Life-only annuities stop at death
• Joint or survivor options continue paying a spouse or beneficiary
• Period-certain payouts guarantee income for a set time, even after death

Make sure beneficiaries understand what’s available—and what isn’t.

12. Get Organized with the Right Tools

Joe and Alison recommend tools like:

• Estate Planning Organizer
• Survivor’s Guide

These documents help you gather account information, key contacts, and final wishes—all in one place. They’re available through their website and offer peace of mind to both you and your heirs.

Final Thoughts: Start Now, Adjust Later

Estate planning isn’t about how much you have—it’s about protecting what matters.

Whether you’re leaving behind a house, a retirement account, or a digital empire, creating a comprehensive, updated, and thoughtful plan ensures your loved ones are cared for and your legacy lives on—just the way you want.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post How to Avoid Probate, Protect Your Family, and Control Your Legacy appeared first on ROI TV.

In this round-up of expert advice from Ric Edelman and Sam Donaldson, we explore eight financial strategies designed to protect your assets and prepare you for the long haul.

1. Protect Yourself with Umbrella Liability Insurance

Umbrella liability insurance is one of the most affordable ways to protect your wealth from unexpected lawsuits.

Why it matters:

• It kicks in when your homeowner’s or auto insurance policy is maxed out.
• It can cover incidents like slip-and-falls, car accidents, or even a rogue grocery cart accident.

Coverage usually starts at $1 million, and premiums often cost just a few hundred dollars per year. If you have teenage drivers at home, now is the time to buy—before the risk increases.

Tip: Most companies require you to bundle your umbrella coverage with their homeowner’s or auto policies.

2. Retirement Planning: A 4-Step Formula

Ric Edelman’s retirement planning blueprint includes:

1. Max out retirement contributions—go beyond the employer match if possible.
2. Pay off credit card debt—ASAP.
3. Build a one-year emergency fund—especially for retirees.
4. Invest in a diversified portfolio—not just what’s trending.

A $4,000/month lifestyle means targeting $50,000 in cash reserves, but not before tackling high-interest debt. Start saving even if you’re still in debt—retirement waits for no one.

3. Thinking About an MBA? Plan Carefully.

A 22-year-old asked about saving for an MBA. Ric’s advice?

• Ask your employer about tuition assistance. Many companies offer reimbursement but require a few years of loyalty post-degree.
• Cut costs now—move in with family, reduce expenses, and avoid investing savings in volatile markets.
• Use a bank account, not the stock market, for short-term MBA savings.

Remember: an MBA is an investment—but it’s also a financial challenge. Prepare like you would for a business deal.

4. Structured CDs for Retirees: Proceed with Caution

Structured CDs may offer higher returns—but they come with tradeoffs.

For Marcia, a 65-year-old retiree, Ric recommended:

• Sticking with ordinary CDs for predictability if market risk causes stress.
• Allocating $100K–$200K of her $300K for moderate diversification.

Beware of salesy pitches. If it’s hard to understand, it’s probably not right for your retirement plan.

5. Wills vs. Trusts: What’s the Difference?

Wills:

• Public documents
• Go through probate—a costly, slow court process
• Often take a year or more before heirs receive anything

Trusts:

• Private and faster
• Skip the probate process entirely
• Can be customized to protect heirs, manage incapacity, or reduce taxes

Advice: Work with an estate attorney and update your documents as needed.

6. Buy Long-Term Care Insurance Early

Why now, not later?

• Premiums are cheaper when you’re younger and healthier
• It protects against the high cost of needing help with bathing, eating, or daily living

Don’t assume family will take care of you—25% of Americans plan to rely on relatives, but that’s not a reliable or fair plan.

7. Financial Media: Info vs. Noise

Financial TV has exploded—from limited news updates to 24/7 coverage from CNBC and Bloomberg. But more information doesn’t always mean better decisions.

Sam Donaldson’s take: Focus on the fundamentals, not the hype.
Ric Edelman’s advice: Be wary of “get-rich-quick” stories—they’re often fictional or exaggerated.

Separate investing from speculating by staying disciplined and avoiding emotional decisions.

8. A Light Moment: Reagan and the Recession

Sam shared a humorous memory:
When asked about a recession, President Reagan deflected blame by quipping, “That happened when I was a Democrat.”

The story was a reminder that even serious matters can benefit from a little humor—and that sometimes, financial clarity comes from cutting through political or media spin.

Final Thoughts: Protect, Plan, and Prepare

Wealth isn’t just about growing your assets—it’s about protecting what you have and planning for what’s ahead.

Whether it’s buying umbrella insurance, setting up a trust, or avoiding speculative investments, your best financial decisions will come from being proactive and staying informed.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Planning for the Future: Smart Financial Moves from Insurance to Estate Planning appeared first on ROI TV.