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The Crimson Legacy — Volume 10, Issue 2 UA Home The University of Alabama Copyright © 2005
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Why Plan Your Estate?
While the term "estate planning" means different things, in the broadest sense it is simply the process of accumulating, managing, and distributing property over a lifetime. An effective estate plan can anticipate and avoid four potential financial difficulties: SUDDEN LOSS OF INCOME There may be someone in your life - children, grandchildren, parents, siblings, or friends - for whom you feel a sense of financial responsibility. A good estate plan will ensure that income continues after your lifetime, if necessary. There are many ways to make provisions for those you care about. Wills, trusts, life insurance, gifts that provide income for life, and other planning tools exist for precisely this purpose. Discuss your goals with your attorney and other financial advisors to discover which plans best suit your needs. Martha and John McNeil of Mobile, AL, know firsthand how beneficial working with trusted advisors can be. "Our advisors listened to our goals for taking care of our family as well as our wishes to continue supporting our charitable interests, such as the University," said John. "They recommended ways that we could make solid plans and fulfill those wishes." OUTLIVING ASSETS With ongoing medical advances, it's no wonder life expectancies are increasing. Effective long-range estate and financial plans help ensure that you will not outlive your resources. Wise planning today can balance your future needs and goals with your current ones. There are also ways to make charitable gifts while providing yourself or other loved ones with a fixed income you can't outlive. "With my gift to the University," says robert Morris of Tulsa, OK, "I have peace of mind that my wife will be taken care of and I am able to make a lasting impact on the engineering programs at UA that mean so much to me." EMERGENCIES While it is not possible to plan for every eventuality, a solid estate plan will ease the potential financial burden of catastrophic illnesses or accidents, should they occur. Making sure your various insurance policies - medical, automobile, and homeowner's - are sufficient and up to date is a good place to start. DISABILITY A good estate plan can also help you cope with long-term disabilities, both physical and mental, that can occur quite suddenly and greatly affect your ability to manage your assets. There are also ways to provide for professional asset management should you or your loved ones need it in the future. Christine Redden of Birmingham, AL, uses the trust services of a local firm to ensure her long-term goals are met. Says Mrs. Redden, "Although I never had a business mind, I never expected to outlive my husband, either. I like knowing that experienced professionals are looking out for my best interests." As you have seen, having a well thought out estate plan mostly means being prepared. Planning done today will allow you to feel secure about the future, knowing that you are ready to face life's many challenges. |
