Family Focus - Part 3

PART 1

PART 2

As we rejoin our construction company owner, Bill, and his wife, Susie, they are now in their mid-forties.  Although a downturn in the housing market substantially stunted Bill's business several years ago, he did not let that hold him back.  As the savvy entrepreneur, Bill capitalized on the down market and purchased several pieces of real estate through foreclosure sales.  He and his then skeleton crew renovated those properties and they now pay for themselves while providing his family with a small monthly rental income.

Their son, Little Billy, never took to football but became very passionate about the game of golf. After winning several local amateur tournaments in high school, Little Billy was offered a full-ride golf scholarship to a small private college in an adjoining state.

Annie, their daughter, is attending college at a large university in California.  Bill and Susie love the California climate, but the state to the far West seems like a foreign country when they visit their daughter.

The upturn in the housing market happened around the same time Little Billy and Annie were both in school full time.  This allowed Susie to utilize her undergraduate degree in accounting and help Bill with the books for the construction company.  Susie's shrewd money management skills have helped the couple to build up a very successful business and clientele.

Having had so many changes in their lives over the past several years, Bill and Susie decide to revisit their estate plan and discuss any necessary changes with their attorney.

Bill and Susie decide that, while they still want the surviving spouse to have everything the couple owns, they are more than comfortable with an outright gift of their assets to their children equally if Bill and Susie are both gone.

Given the untimely death of Bill's brother, Buck, and Susie's sister relocating to Canada after the most recent Presidential election, they decide that Little Billy will be more than capable to act as the Executor of their estates if their spouse is unable to do so.  Given his close proximity, they also determine that Little Billy will be a suitable successor Agent under all of their powers of attorney documents.

During their consultation, the couple discovers that the biggest potential threat to their financial security would be if one or both of them were to ever require long-term care at home or in a nursing home facility.  They make a commitment to contact their insurance agent to discuss the need for the level of life insurance they currently have and the possibility of obtaining long-term care insurance.

Next week, we will explore Bill and Susie's golden years and how the couple can protect their nest egg and revise their plan for a smooth succession of their assets.