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54 LOUISVILLE MAGAZINE 2.15 When learning that a newspaper had printed his obituary, Mark Twain quipped, "Reports of my death are greatly exaggerated." Te same could be said about the need to have a current estate plan. Afer the purported repeal of the federal estate tax in 2001, many people concluded that most families no longer need to have estate plans. Tat would be true if the only reason to have an estate plan was to save taxes. It isn't. Who gets what? Although tax savings has traditionally driven most estate planning, you have other important non-tax reasons for maintaining an estate plan. For instance, without an estate plan, who decides who gets grandma's wedding ring? Without a will, state law will dictate who gets what, and it is safe to say that legislators' decisions on who will get your family heirlooms likely don't agree with yours. What about the kids? For parents of young children, probably the most important reason to create an estate plan is to leave clear instructions regarding their care. A properly executed will can name a guardian for minor children and direct how he or she should use inherited assets for their care. Yours, mine, and whose? In blended families where one or both spouses have children from a previous marriage, a well-crafed estate plan can help avoid strained relations afer a death. For example, each spouse can initially ensure their individual assets are available to provide for their surviving spouse. But afer the second spouse has passed away, identifed assets would go to their own children rather than their spouse's. What about you? In addition to your will (and maybe a trust), your estate plan should include personal documents such as a durable power of atorney, a health care surrogate designation and a living will. A power of atorney gives someone you trust the ability to manage your afairs if you become incapacitated or disabled. A health care surrogate designation is similar to the power of atorney, but gives someone the ability to make medical decisions on your behalf. Te living will tells your relatives and health care professionals your preferences as to whether you want to be kept alive by artifcial means. Tese are only some of the reasons why you should establish an estate plan — and keep it current. Your own circumstances may present other important reasons, so you should consult your atorney regarding your personal estate plan. Hilliard Lyons Trust Company does not provide legal or tax advice. We urge you to consult with your atorney or tax advisor before taking any steps that could afect your estate or your tax status. Yes, You Do Need an Estate Plan – Even If You're Not Rich Chris Staples, Vice President, Hilliard Lyons Trust Company Special Advertising Section Q: A: Why should I consider guaranteed income annuities? 1. Tey last a lifetime. 2. Tey are dependable. 3. You can keep up with infation. 4. Tey're perfect for rollovers. 5. You choose the start date and frequency of your income payments. 6. Tey can cover your loved ones, too. 7. You may get more income than you would from alternatives. 8. Tey help simplify planning. 9. Your money can be passed to your heirs. — Daniel B. Santos, Jr., CLU, MA , Agent, New York Life Insurance Company I would like to create a Roth IR, but my income exceeds the limits for contributing to one. Interestingly, the income limits that prohibit many people from contributing to a Roth IR don't apply to rollovers from traditional IR accounts. So if you have a traditional IR, you can roll it over to a Roth. Some investors even open new traditional IRs each year and later roll them over to their Roth account. But it is important to remember that some amounts rolled over from traditional IRs to a Roth IR may be taxable income in the year that you make the rollover. — Todd Oetken, Vice President & Wealth Planner, Hilliard Lyons Q: A: A: Q: Why should I select an independent registered investment advisor? Tere are many reasons. 1) A Registered Investment Advisor (RIA) is legally bound to work in your best interest. By law, they are required to make investments that are in your best interest and are held to a fduciary standard of care. 2) Transparent fees. Many independent RIAs charge a fat fee based on the assets they manage, avoiding the conficts larger frms face. 3) Vested interest in your success. As business owners, they focus on building mutually benefcial long-term relationships with clients. 4) Personalized service that is easier to deliver at an independent frm. — Steve Giacobbe, CFA , CFP®, Founding Partner, Accredited Wealth Management