Are Your Family’s Wishes, Wills & Wallets Protected?

Are Your Family’s Wishes, Wills & Wallets Protected?

Planning your future and beyond

By Dalia Díaz

This is a subject that rarely is touched by families and they think of it when they realize that an elderly member of the family wants to make decisions before his or her time comes.  We often hear about quarrels after a loved one passes over belongings or inheritance ruining at times their relationships.

While my time is limited, I participate in events held via Zoom by Bridges a memory care assisted living at Andover, that are always very interesting and educational.  They sometimes have in-person seminars and I have also attended some of them and they are always free.

This week, it was all about preparations to make it easier on your family, and since I’m getting to that age, I thought I could learn something new.  It turned out to be one of the best they have done.

There was a panel of local experts for guidance on how to physically, mentally, financially, and legally prepare your family for the years ahead.  It was organized by Art and Michelle Durkin of The Art of The Sale Group.  After spending 35 years as a clinician and senior nursing executive, he went into real estate and executes plans to build generational wealth and accomplish the goals of the family.

If you think having a will solves the issue of where your belongings will end up, think again, many are contested by the family members or end up in court for not being done correctly, etc.  Also, paying inheritance tax is something that can be avoided if you plan it right while living.  With the high level of divorces in this country, your inheritance could end up in the hands of another family.

Atty. Kelly Longtin explained that her focus is helping everyday families develop an estate plan that protects families from the devastating effects of disability and death.  Developing a plan minimizes taxes, expenses, and court involvement.

“I believe it is important to educate families on their options when it comes to estate planning and I offer these seminars and webinars on a variety of estate planning topics to both the general public and private groups as well,” said Atty. Longtin.

According to her, a will doesn’t protect the family as we expect because there are too many laws to be applied that your heirs will end up receiving a lot less than you thought.  Many things showed me how ill-prepared my family is.

Usually, as we reach a certain age, we become empty-nesters and we no longer need a big house.  We may not always be able to perform some of the upkeep the house requires and have to pay someone else to get the minor plumbing, electrical work, or gardening that we used to do.  It’s time to downsize to perhaps a smaller home or a condominium where all the chores will be taken care of.

Jane Kiegel of WayForth made me laugh out loud when she mentioned “declutter” as if she’s been to my home.  After so many years, we collect so many things that when the time to downsize comes, we are overwhelmed.  Don’t let your children decide what is important to you.  Whether it’s to be kept, donated, discarded, or held for auction in case of valuable items, you should be in charge and not anyone else.

The most important part of handling your family’s finances when the need arises is how to find money for tuition, renovations, emergencies, debt consolidation, etc.  Understand your options for accessing your home’s equity.

The banking industry could be very confusing to many people and Jason Linscott, branch manager of Guild Mortgage explained the difference between a HELOC and a HELOAN.

You could get a HELOC loan to cover those expenses.  This is a Home Equity Line Of Credit secured by your home up to 95% of your home’s equity.  You can use your revolving credit line for large purchases such as tuition, renovations, and emergencies.

“A Home Equity Loan (HELOAN) provides up to 95% of your home’s equity as a piggyback 2^nd mortgage,” Jason explained.

The HELOAN acts as a second mortgage, to do an 80-10-10 or 80-15-5 with a first mortgage up to 80% loan-to-value attached to a second mortgage to avoid mortgage insurance or jumbo loan amounts. We must learn which option is most beneficial to us before selecting which way to go.

They are all part of the Keller Williams Real Estate Planner community and Bridges by Epoch is a memory care assisting living located at 254 Lowell St., Andover, MA.  If you would like to schedule a visit, please contact Susan Tourtillotte at (978) 289-4100.