Wealth Planning and Leaving a Legacy

WEALTH PLANNING and LEAVING A LEGACY Are you prepared for the future with the safest investments for retirement and beyond?

IF YOU HAVE ANY QUESTIONS PLEASE REACH OUT TO US!

FOREWORD Thank you for your time and interest! This booklet was created as an educational guide to bring you greater clarity and understanding of the financial decisions you make. If you need more information on a subject discussed, we welcome your email and will attempt to get you the answers you need. Please be mindful as you read this; everyone’s financial situation is different. So any product or solution must match your specific financial picture. We strongly recommend you consult with a highly-rated professional about every financial decision you make. Because, just as not all products are created equal, neither are all financial professionals, and the difference in knowledge and advice can be substantial from one advisor to another. Working with a highly knowledgeable, independent, well-rated professional can make all the difference when it comes to the results you achieve. If you are ready to explore your retirement options and want some help cutting through the clutter and jargon, visit www.CertifiedSafeMoney.com for unbiased information and to connect with professionals who can answer all of your most pressing questions. If you ever have feedback related to this booklet or concerns about your retirement income and financial security, please email us at [email protected] We’re happy to help. CSM2021PRESWLTH 3 [email protected] www.certifiedsafemoney.com

You’ve worked hard all your life, and you deserve all the benefits that come with it – that includes ensuring all reasonable efforts have been made to secure the best retirement plan possible. Preserve your wealth and leave a legacy for those you love by using the safest investments for retirement. Even if you don’t have an estate plan in place, Uncle Sam has one for you – and it’s not likely he will include the people or organizations that you have in mind for inheritances. It could even be that Uncle Sam is your largest beneficiary. So, setting up an appropriate wealth preservation strategy using safe money investments and solutions allows you to remain in control of what happens with your assets and avoid conflicts among your survivors while preserving your retirement savings and avoiding unnecessary risks. Plus, it could even increase the value of your overall estate. VISIT www.certifiedsafemoney.com TO FIND THE BEST RETIREMENT INCOME PLANNING PROFESSIONALS IN YOUR AREA. CSM2021PRESWLTH 4 [email protected] www.certifiedsafemoney.com

HOW TO CREATE AN ESTATE PLAN Some people mistakenly think they have to be wealthy to have an estate. The reality is that everyone has one. Unfortunately, only about half of Americans plan to leave an inheritance to their survivors and are not prepared with the best estate planning advice. One reason is they feel there won’t be anything left when they pass away – especially given longer life expectancy and the need for assets and income to last for what could be a 20-year or more retirement. DEFINING THE VALUE OF YOUR ESTATE The first step in creating an estate plan is determining what your estate is and isn’t. Doing so can help you decipher how much of your assets could be taxable. Your taxable estate is defined as the value of a deceased person’s assets subject to taxation, minus liabilities, and the prescribed tax-deductible portion of assets left behind by the individual. Typically, your taxable estate will consist of some – or even all – of the following assets: • Cash • CDs • Stocks, bonds (corporate and government), and mutual funds (including retirement accounts such as IRA and 401k accounts) • Real estate • Personal property • Life insurance • Businesses owned • Autos and other vehicles • Jewelry You could also have some items that are considered liabilities, such as: • Mortgage balance • Home equity loan balance • Auto loans • Student loans • Other loans • Credit card balances Depending on the overall value of your net worth when you pass away – computed as your assets minus your liabilities – your survivors may be subject to estate taxes. When coming up with an estate value, some items can be deducted from your estate, such as: • Funeral expenses paid out of the estate • Debts that the decedent owes at the time of their death • Value of the assets passed on to the decedent’s spouse CSM2021PRESWLTH 5 [email protected] www.certifiedsafemoney.com

REQUIRED ESTATE PLANNING DOCUMENTS There are several documents typically needed when creating an estate plan, including: • Last will and testament – The “cornerstone” of a safe estate plan is a last will and testament, often referred to as a will. In this document, you provide information regarding what happens with your tangible and intangible assets. If you have minor or special needs children, you can also name guardians for them in your will. This is also where your wishes for the funeral and other final arrangements are outlined. Typically, an executor – an individual or entity in charge of following your directions in the will – is named. If there is not a valid will in place upon death, your assets could end up passing through the costly, time-consuming, and public process of probate. • Living trust – A living trust is a tool often used for passing assets to survivors by bypassing the probate process. With this arrangement, a trustee is assigned to manage the property and assets in the trust. Unlike a will, trusts can distribute assets both before and after your passing. • Financial durable power of attorney – Should you become unable to make decisions on your own, having a durable power of attorney in place will allow someone whom you trust to act on your behalf legally and financially. • Living will/healthcare power of attorney – Having someone who makes health and medical decisions for you could also be a necessity if you endure an accident or serious illness. In this case, a durable healthcare power of attorney can be essential for ensuring that your requests are addressed. Likewise, a living will allows you to outline in advance the type of care that you do and do not want, such as taking life-saving measures or being placed on a ventilator. Have you ever wondered what happens to the material you have stored in the cloud and your social media accounts when you die? The digital assets provision of estate planning allows you to determine what will happen to your various online accounts, such as Facebook and Google, and your computer’s hard drive, digital photos, and any other information you may have stored in the Cloud. Preparing your survivors can also entail providing a list of documents and their locations. For instance, your loved ones will need to know where legal, financial, and other important information is, such as: • Bank accounts • Personal checking and savings accounts • Personal investments • Annuities • Pension information • Retirement accounts • Life insurance policies • Birth certificates • Credit cards • Deeds to real estate • Military/veteran information • Memberships • Accounts and bills (such as utilities, cable, internet, etc.) CSM2021PRESWLTH 6 [email protected] www.certifiedsafemoney.com

CHOOSING YOUR ESTATE-PLANNING TEAM MEMBERS Because it can include financial, tax, and legal issues, proper estate planning requires several professionals’ help. Therefore, you should have several members on your estate planning team, including: • Financial Advisor – The best financial advisors can help you design the proper allocation of assets for your specific short- and long-term objectives. • Attorney – With so many legal issues related to estate planning, you must get advice from a legal professional, particularly one who specializes in estate planning issues. • Tax Professional – An accountant or CPA can assist you with implementing tax-related strategies, which can include taking advantage of deductions or tax credits that are available to you. • Trust Company – A trust company is another critical component of an estate plan, as they perform several fiduciary duties. These entities are typically owned by banks or law firms and can serve as trustees for your various trusts. • Trustee – A trustee is an individual or entity who can administer financial assets on behalf of another individual. The assets are usually held in the form of a trust. Trustees typically keep records, manage assets and investments, prepare court accountings, pay medical expenses and other bills, make charitable gifts, distribute inheritances, or make other principal or income distributions from the trust. LOOKING FOR THE SAFEST INVESTMENTS FOR RETIREMENT? Visit www.certifiedsafemoney.com TO LEARN MORE. CSM2021PRESWLTH 7 [email protected] www.certifiedsafemoney.com

WHAT IS PROBATE, AND WHY SHOULD YOU PLAN TO AVOID IT? Probate is a legal process in which your last will and testament are reviewed to determine their validity. This process can also include administering a deceased person’s will or a deceased person’s estate without a will. If your estate goes through probate, the court will appoint an executor – if one is not named in the individual’s will – to administer the process of collecting assets, pay any liabilities owed and distribute the remaining assets (if any) to the beneficiaries. It is up to the executor to pay off any debt and any taxes owed by the person’s estate. Typically, creditors have a certain amount of time to make claims against the estate for money owed to them. In most states, the proceedings of the probate courts are a matter of public record. So, unless you take specific measures to safeguard your privacy, just about anyone can go to the county courthouse and find out the value of your estate – including information on assets and liabilities. Even with a will in place, your estate can go through probate – unless other safe estate planning measures have been taken. People often think that if they have a written will in place that they are fully protected. But this is not always the case. While having a will is a crucial piece of the overall estate planning process, it is only one component. With that in mind, having an estate plan could allow you to protect assets from taxes and creditors, and it can also provide you with much more control over who receives what. DON’T GO IT ALONE. VISIT www.certifiedsafemoney.com TO FIND A TRUSTED, SAFE MONEY PROFESSIONAL NEAR YOU. CSM2021PRESWLTH 8 [email protected] www.certifiedsafemoney.com

WILL YOU BE SUBJECT TO ESTATE TAXES? Those who have larger estates may be subject to estate taxes upon their passing. In 2021, the federal estate tax exemption was $11.7 million per individual, meaning you could leave this amount to heirs and not pay a federal gift tax. However, suppose your estate value exceeds the exemption amount when you pass away? In that case, the IRS will collect estate tax from your survivors, based on the amount your estate exceeds the exemption amount. Estate tax rates can vary, based on the amount of your taxable estate, with the top federal estate tax rate being 40%. Several states require state estate taxation, as well, which can be up to 20%. This state tax is in addition to the federal estate tax that may be due. All told, your estate could be reduced by roughly half unless you have a good estate plan in place. One way to reduce your estate is to “gift” away money or assets. Each year, you are allowed to gift a certain amount to as many individuals as you decide without being subject to gift taxes (in 2021, this amount is $15,000). Together, spouses can gift away double the annual gift tax exclusion. You should also be aware of the “lifetime gift tax exemption” when gifting away assets. In 2021, this amount is $11.7 million – which coincides with the estate tax exemption and can double if you are married. Some gifts aren’t subject to the limit, such as gifts you give your spouse (provided they’re a U.S. citizen), as well as donations to a qualifying charity and payments of medical or tuition expenses for another individual (provided that these payments are made directly to the institution and not to the individual for reimbursement). CSM2021PRESWLTH 9 [email protected] www.certifiedsafemoney.com

CSM2021PRESWLTH 10 [email protected] www.certifiedsafemoney.com HOW TRUSTS CAN HELP YOU ACCOMPLISH YOUR LEGACY GOALS Another way to reduce – or even eliminate – taxes due on your estate is to use various trusts. A trust can help you accomplish a wide range of estate planning goals. Trusts are not accounts but rather legal documents that certify ownership of assets. People can set up trusts for different reasons, depending on their specific goals, including: • Protecting assets from creditors • Passing assets and property to heirs (and avoiding probate) • Exempting assets from estate taxation Trust documents can usually provide a great deal of freedom, so you can be quite specific regarding what you are trying to achieve with the trust. Generally, trusts consist of up to four components: • Grantor – The grantor is the individual who sets up the trust. • Trustee – The trustee is the person or entity that follows the grantor’s wishes per the trust document and who also manages the trust upon the grantor’s passing. (It is recommended that a successor trustee be named if the trustee predeceases the grantor.) • Beneficiary – The beneficiary (or beneficiaries) is the one that will benefit from the trust’s assets. • Property/Assets – There is also property or assets placed in the trust, such as investments, real estate, etc., that makes up the trust. There are two primary trust types. These include testamentary trusts and living trusts. A trust set up to operate after the grantor has died is referred to as a testamentary trust. Alternatively, a living trust is set up during the grantor’s lifetime. A living trust may be either revocable or irrevocable. Revocable trusts allow you to retain complete control over all of the assets in the trust and have the freedom to change or revoke any of the trust’s terms and conditions at any time. Alternatively, an irrevocable trust does not give you complete control over any of the assets held therein – and you are not allowed to make changes to this type of trust without the beneficiary. But there is a “tradeoff” with an irrevocable trust in that it is not subject to estate taxes. By placing assets into the irrevocable trust – and in turn, relinquishing control of them – ownership is removed from your name, as well as the tax responsibility from your estate. However, this is not the case with a revocable trust, in which the assets may be taxable and where the grantor can change the beneficiary. Likewise, because assets that go into an irrevocable trust are removed from your name, creditors cannot obtain them.

All investments, retirement, and estate planning strategies (collectively “Strategies”) have inherent risks. Content is not personalized financial advice and should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author on the date of publication and may change in response to market conditions. Although the information has been gathered from sources believed to be reliable, we do not guarantee its accuracy or completeness. There can be no assurance that you will achieve your goals if you implement any of the strategies discussed. Past performance does not guarantee future results. Indexed universal life insurance may not be suitable for you depending upon your investment objectives, risk tolerance, financial situation, and liquidity needs. Accessing policy cash value through loans and surrenders may lead to a permanent reduction of the policy’s cash value and death benefit, which may lead to a potential lapse of the policy. Insurance product guarantees are subject to the claims-paying ability of the issuing company. There may be tax penalties for distributions prior to age 59½. Working with a highly-rated professional does not ensure that you will experience a higher level of performance. Professional awards do not guarantee future investment success. Please contact the professional for more information regarding the criteria for any awards or rankings noted. Ratings can be based on client evaluations and the professional’s activity. Hyperlinks in this Booklet are provided as a convenience. Neither the information in this Booklet nor any option expressed herein constitutes an offer to sell or solicit any person to purchase any security or product. Investment decisions should not be made based on information in this Booklet. Individuals should rely exclusively on the offering material provided to them by a licensed professional or regulated entity when considering whether to invest. Usage of this Booklet requires your acknowledgment that you shall hold www.CertifedSafeMoney.com, Financial Media & Marketing, LLC, and its Officers, Directors, Employees, or Agents (collectively “FMM”) harmless. In addition, you specifically acknowledge and agree that no oral or written information or advice provided by FMM (Including without limitation its call center representatives) will (I) constitute legal or financial advice or (II) create a warranty of any kind concerning this Booklet or the services found on any website(s) related to or owned by FMM, and users should not rely on any such information or advice. FMM disclaims all representations and warranties of any kind, express, implied, statutory, or otherwise, to you and/or any other party, including, without limitation, any warranties of accuracy, timeliness, completeness, efficacy, merchantability, fitness for any particular purpose, and usefulness of the content provided. FMM shall have no tort, contract, or any other liability to you or any other users of content from this Booklet and/or to any other party. FMM shall not be liable to you and/or any other party for any lost profits or lost opportunities or any indirect, special, consequential, incidental, or punitive damages whatsoever arising out of or relating to the use of this Booklet, even if FMM has been advised of the possibility of such damages. Tax and legal information provided is general in nature and should not be construed as legal or tax advice, and it is not a substitute for your independent research and evaluation of any issue. If specific legal or other expert advice is required or desired, the services of an appropriate, competent professional should be sought. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. CSM2021PRESWLTH 11 [email protected] www.certifiedsafemoney.com Some estate planners use life insurance policies or other safe money instruments in trusts because this asset can serve several vital purposes. For instance, if an individual owns a life insurance policy, the death benefit will be included in their taxable estate upon death. Although the death benefit of a life insurance policy is typically income tax-free, the death benefit could increase the amount of estate tax that is due. Suppose an irrevocable trust owns a life insurance policy. In that case, the amount of these proceeds is removed from the individual’s name – and not only are the funds not included in the value of the taxable estate, but they could also be used to pay any estate taxes due from the survivors. This and other similar estate-planning strategies are not “do it yourself” options, as they can involve intricate financial, tax, and legal planning issues. Because of that, it is recommended that you work with a team of financial planning professionals as you create the estate plan that works best for you. TAKING THE NEXT STEP As you move forward creating a safe money estate plan that preserves your assets and passes them to your loved ones; make sure you have a trusted team of financial, legal, and tax experts on your side. LOOKING FOR MORE INFORMATION ON SAFE MONEY INVESTMENTS? VISIT www.certifiedsafemoney.com TODAY.

RkJQdWJsaXNoZXIy MjEyMTc2MA==