It is wise to look at your financial situation in a long-term and holistic manner. One thing leads to another, and there are different expenses that you are going to face as you reach different plateaus during your life.
If you work with an experienced attorney who has a background helping people who are planning for retirement as they simultaneously shape a fitting legacy you will have a cogent framework to guide you.
Everything that you do in the present impacts the future, and this is why it is so important to have a “game plan” as it were.
One useful tool to have at your disposal when you are serious about your long-term financial future is a net worth statement. This is a balance sheet that you utilize to determine where you stand financially by entering your assets and your liabilities.
This information is invaluable as you are planning for retirement because you can see if you are on track at any given time.
Calculating your net worth is very important in an estate planning context as well. We have an estate tax on the state level here in New York, and of course the federal estate tax is something to contend with as well.
Whether or not you are exposed to the tax depends on your net worth in relationship to the estate tax exclusion that is in place. Therefore, you need to know the value of your estate at all times so that you can work with your estate planning attorney to implement tax efficiency strategies if you do enter into taxable territory.
Mark S. Eghrari, Estate Planning Attorney
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