Planning for the Future: Estate Planning and Personal Finance

By: Janice Dantes

 

While my parents and many others in their generation came to the United States for a better life, they are now able to enjoy the fruits of their labor and are also in the position to pass down assets to the next generation. This is truly living the American dream. However, not all Filipinos are aware of the tools available for preserving assets for the next generation. Below are my list of asset preservation tools:
Estate Planning Basics
There are many legal documents your parents can create to clearly outline their wishes during their incapacity and after their death. Encourage your parents to prepare or update essential legal documents, including:
• Power of Attorney for Property: Designates someone to handle financial matters if you are incapacitated
• Power of Attorney for Healthcare: Identifies a person to make medical decisions and outlines your parent’s healthcare wishes.
• Last Will and Testament: Provides specific instructions for your executor to handle your estate in a court proceeding.
• Living Trust: Provides specific instructions for your trustee to handle your assets without a court proceeding.
Having these documents in place allows your parents to pass along their assets to their heirs and beneficiaries.
Personal Finance Basics
There are books, experts, and a whole industry to help Americans with managing their personal finance. Filipinos are not always aware of ways they can protect their nest egg and invest in their future. Some tools I recommend are as follows:
• Insurance coverage: Discuss with a broker to examine your insurance coverage to insure you have the appropriate coverage in the event of accident or death. Some insurance coverage to consider are health insurance, life insurance, home/vehicle insurance, umbrella coverage, and other special kinds of insurance for your business or industry (e.g. malpractice insurance).
It is ok to negotiate coverage.
• Retirement benefits: Social Security is just one source of retirement benefits. Be sure to explore any 401k plans or pension benefits with your employer. You are also welcome to open your own retirement accounts including Roth and Traditional IRAs.
• Financial Advisor. If you are unsure of how to plan for your future, you can always consult a financial advisor.
Mindset: Addressing the Future Proactively Too many Filipinos have life happen to them. They take a “wait and see” approach to life. While we cannot control the outcomes in our lives, we can be sure we are prepared. Below are some things to be aware of:
• End of Life Care: Be sure that you are clear with your family how you intend to be cared for in the future. Do you have sufficient funds for a nursing home or caregiver? Do you want to be in a facility or remain at home as long as possible? Do you have long-term care insurance?
• Money Mindset:
Examine your own money mindset. Are you retiring with debt or have you built a nest egg? If you have funds available to you for your benefit, are you able to use it to improve your life or do you have a problem with hoarding money? What are your expectations of your children if you are unable to care for yourself?

Your Legacy: Are you building wealth for future generations or are you going to spend everything you have? If you have a business, do you have a succession plan?
Conclusion While no one wants to think about their health and future death, we all know it is inevitable. We can decide to let life happen to us or control what we have the ability to control. My advice is that it is better to be prepared than unprepared.
If you are seeking a fellow kababayan to assist you with your estate planning, please visit https://pinaylaw.com/ or call 312-546-5077.
Thank you for reading.
Until we meet again, love one another.