Insurance – The Law Firm of Myrna Serrano Setty, P.A. https://www.serranosetty.com Estate Planning, Medical Directives, Guardianship, Special Needs Planning Fri, 13 Mar 2020 16:11:59 +0000 en hourly 1 https://wordpress.org/?v=5.4 How can you protect your finances this year? https://www.serranosetty.com/florida/estate-planning-attorney/money/how-can-you-protect-your-finances-this-year/?utm_source=rss&utm_medium=rss&utm_campaign=5-financial-things-to-review-annually Tue, 28 Jan 2020 17:05:10 +0000 https://www.serranosetty.com/?p=2278

How can you protect your finances this year?

Start with reviewing the following documents at least once this year.

1. Estate Planning Documents 

To help ensure that your property and money ends up where you want it, look over your will, trusts, and other estate planning documents at least once a year to see if there is anything you’d like changed.

For example, you may want to make a change if you’re recently married or divorced, added a new child to the family, received an inheritance, or experienced any number of other major life events. Or you may simply want to make a change because you’ve changed your mind about some part of your estate plan. Review your choices for who would manage your finances and health care if you ever become incapacitated. Are you still satisfied with your choices?

We can update your documents for you, as well as review them to see if adjustments are needed due to any changes in the tax laws. How much does an estate plan cost?

2. Life Insurance Policies 

Things can change quickly in life, and the life insurance coverage that was sufficient to protect your family five or ten years ago may not be enough in your current financial situation. To help ensure that your life insurance coverage keeps pace with changes in your life (marriages, new children, new home, new business, pay increases, etc.), it’s a good idea to review your coverage at least once a year.

3. Beneficiary Designations 

You should review your beneficiary designations annually and when major life events (marriages, births, deaths, etc.) occur. Regardless of the instructions in your will, the beneficiaries you put down on your forms will generally inherit those assets.  Assets that you may have named a beneficiary for include checking and savings accounts, annuities, medical and health savings accounts and life insurance policies.

4. Credit Reports

Not checking your credit report regularly may cost you. Errors that creep into your credit report and that are not caught may result in you being denied credit or paying higher interest rates than necessary or new credit cards or loans. It could also keep you from you from getting a new job, and cost you more for your car insurance.

Check your credit reports for errors at least once a year and before applying for a new loan or job. And while you are looking for errors, also look for signs of potential fraud such as accounts you did not open. You are entitled to a free credit report once every twelve months from each of the three major credit reporting agencies. You can order your free reports online at www.AnnualCreditReport.com or by calling 1-877-322-8228.

5. Social Security Statement 

Even if you are a long time away from retirement, review your Social Security Statement annually. Make sure that your earnings for the prior year have been accurately recorded. That is because your earnings record determines the amount of your monthly Social Security benefit in retirement. If there are any earnings missing from your record, you may receive lower benefits in retirement than you deserve. Review your statement online at www.ssa.gov/myaccount.

Do you want more smart ideas for your finances? Check out this article on bright ideas for your money.

This article is a service of the Law Firm of Myrna Serrano Setty, P.A. We don’t just draft documents. We help you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Planning Session. Call our office today to schedule a Planning Session. Mention this article to learn how to get this $500 session at no charge. 

Call us at (813) 902-3189.

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Will These Life Insurance Mistakes Hurt You? https://www.serranosetty.com/florida/estate-planning-attorney/life-insurance-mistakes-that-can-hurt-you/?utm_source=rss&utm_medium=rss&utm_campaign=5-life-insurance-mistakes-that-can-hurt-your-family Tue, 21 Jan 2020 18:25:08 +0000 https://www.serranosetty.com/?p=2022 Life insurance is an important part of estate planning and taking care of the people you love after you pass away. Here are some common mistakes that you should avoid.

1. Not naming a beneficiary

Too many people forget to name a beneficiary or backup beneficiaries. Those mistakes can result in your life insurance proceeds having to go through the probate court process. That can tie up your money for months and even open up the life insurance proceeds to your creditors. And that can wipe out your funds.

2. Naming an individual as beneficiary to take care of that money for someone else

You might be tempted to list someone you know and trust as beneficiary of your life insurance, with the understanding that he or she would use that money to take care of another person that you have in mind. This could result in a number of problems. For example, you list your sister as beneficiary of your life insurance so that she can take care of your daughter.

3. Not keeping your beneficiaries up to date

Too many people forget to update their beneficiary designations.  You should review your beneficiary designations at least once a year so that you can make sure you update them upon events like divorce, deaths, and births.

4. Naming a minor as beneficiary

We see this ALOT. And it can result in expensive and time consuming complications for your family. That is because in Florida, minor children can’t directly inherit assets over $15,000. If a minor is listed as the beneficiary, the proceeds of your insurance will be distributed to a court-appointed custodian (guardian of the property), who will be in charge of managing the funds (often for a fee) until the age of majority, at which point all benefits are distributed to the beneficiary outright.

Instead of naming a minor as beneficiary, consider setting up a trust to receive the insurance proceeds, and name a trustee to hold and distribute the funds to a minor child you would want to benefit from your insurance proceeds. By doing so, you get to choose not only who would manage your child’s money, but also how and when the funds are distributed and used.

5. Naming an individual with special needs as beneficiary

If a loved one has special needs, chances are you want to help provide for a lifetime of care and protection. But if you leave the money directly to someone with special needs, it could disqualify that individual from receiving much-needed government benefits. Consider creating a “special needs trust” to receive the insurance proceeds. That way the money won’t go directly to the beneficiary upon your death, but it would be managed by the trustee you name and dispersed according to the trust’s terms, without affecting benefit eligibility.

You owe it to your loved ones to get this right.

Naming life insurance beneficiaries might seem pretty straight forward. But if you mess this up, you can create pretty big problems for the people you love.  But don’t worry, we can support you in planning for the people you love, whether it’s through life insurance or other tools such as wills or trusts.  Schedule an estate Planning Session to get started.

Call us at (813) 902-3189.

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Part 1: How do you choose life insurance beneficiaries? https://www.serranosetty.com/tampa/estate-planning-attorney/beneficiaries/part-one-how-do-you-choose-life-insurance-beneficiaries/?utm_source=rss&utm_medium=rss&utm_campaign=part-one-how-do-you-choose-life-insurance-beneficiaries Fri, 05 Apr 2019 18:41:27 +0000 http://www.tampaestateplan.com/?p=1268 Part 1: How do you choosing life insurance beneficiaries?

Choosing a beneficiary for your life insurance policy isn’t as easy as you might think. That’s because  naming someone as your life insurance beneficiary really has nothing to do with you. Why? Because you should consider how that money will affect your beneficiary’s life once you’re gone. If you’re not careful, you might create problems for your loved ones.

Here are a few important questions you should ask yourself when choosing your life insurance beneficiary:

1. What are your goals? 

Ask yourself: what do you ultimately intend to accomplish with your life insurance?  For example, are you trying to replace income for your spouse and kids? Are you just trying to cover your funeral costs?

The real reason you’re investing in life insurance is something only you can answer. And that answer will put you in a better position to choose your beneficiary.

2. What are your beneficiary options?

Your primary beneficiary is your first choice. If you don’t name a beneficiary, then your life insurance goes to your estate. That means that your life insurance will end up in Probate. Your insurance company will ask you to name your top choice to get the money after your death. This is the primary beneficiary. Probate can tie up your life insurance in court for months or even years.

You should also name a backup beneficiary (a/k/a your alternate or contingent beneficiary)

For example, you can name multiple primary beneficiaries, like your children, and have the proceeds divided among them in whatever way you wish. Also, the beneficiary doesn’t necessarily have to be a person. You can name a charity, nonprofit, or business as the primary (or contingent) beneficiary.

When choosing your beneficiaries, you should ultimately base your decision on which person(s) or organization(s) you think would most benefit from the money. In general, you can designate one or more of the following examples as beneficiaries:

  • One person
  • Two or more people (you decide how money is split among them)
  • A trust you’ve created
  • Your estate
  • A charity, nonprofit, or business

3. Do you have minor children?

If you name a minor child as a primary or contingent beneficiary (and he or she ends up receiving the policy proceeds), a legal guardian must be appointed to manage the funds until the child comes of age. This can lead to numerous complications, so you should definitely consult with an experienced estate planning attorney if you’re considering this option.

Check out Part Two in this series discussing the remaining three questions to consider when naming beneficiaries for your life insurance policy.

Call us at (813) 902-3189 to book your Estate Planning Session.

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