Digital Estate Planning

 Just when you think you've finished all your estate planning tasks... what about your digital assets? 

"Your digital life includes dozens of usernames and passwords. Providing a digital estate plan can help your family deal with your accounts with minimal fuss" according to Marguerita M. Cheng, CFP®

"State laws such as the RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act) offer the executor of an estate or attorney access to a person’s online accounts after incapacitation or death. These laws help you to protect your digital assets. But you need a digital estate plan to enable your family to access your digital assets if you pass away."

Your digital estate includes all of your electronic and virtual accounts and assets, such as:

• Social media accounts
• Email accounts
• Photos saved in the cloud

and much more!

Steps for creating a digital estate plan include:

1. Take inventory.

2. Decide how you want your digital assets handled.

3. Pick a digital executor.

4. Store your digital estate plan in a safe place.

Get all the details at: https://www.kiplinger.com/retirement/easy-steps-for-digital-estate-planning

What if my child doesn't go to college or doesn't use all of their 529 plan funds?

529 college savings plans are a great tax-advantaged way to save for post-secondary education for your child or yourself. They aren't limited to paying for traditional universities but also many other post-secondary education programs. Search for "529 college savings" in this blog for the basics. 

Sometimes people are reluctant to commit funds for fear their child won't pursue college or perhaps, might get a full-ride scholarship and not need the funds. Lucky you! But 529 funds can be used for post-graduate education and can be transferred to a sibling or other close relative.

Now there is a new twist on how excess 529 funds can be used. Congress recently passed the Secure 2.0 Act which offers another option. 

"Starting in 2024, funds leftover in a 529 plan can be transferred to a Roth IRA for the beneficiary. There are some caveats, of course. There’s a lifetime limit of $35,000. The beneficiary has to have earned income, and the annual Roth IRA contribution limit also applies. The plan also must have been open for at least 15 years"according to financial expert Michelle Singletary, writing for The Washington Post. Singletary knows what she's writing about: she sent all 3 of her children to college without having to borrow money!

Money management guide for those with disabilities and special needs

Financial Resources for People With Disabilities by Daniel Gleich is available on the Madison Trust Company website.

"People with disabilities often face additional financial challenges due to the added expenses that can stem from their disabilities, such as the need for more health care and the cost of equipment required to maintain their independence. But at the same time, research has shown that people with disabilities often have less income than people without disabilities. This makes keeping up with the cost of living increasingly difficult, which is why it's essential that people with disabilities have strong money management skills. With careful budgeting, it is possible for people of all abilities to meet their financial goals."

Beside providing plenty of financial advice applicable to everyone, this website is an amazing resource with links to dozens of resources specific to persons with disabilities. Links to Supplemental Security Income, government benefits, income tax breaks, and Seven Surprising Discounts for Disabled People are among the dozens of helpful resources. The website is essentially a crash course in personal finance that all can benefit from and put to use. Check it out:

Thanks for volunteer Julianna and Lisa Echevarria at the Hastings Recreation Center in Minnesota for this information. Check out the website:

https://www.madisontrust.com/client-resources/articles/financial-resources-for-people-with-disabilities/

Series I bonds still ‘attractive for longer-term investors’ as annual rate falls to 4.3%

 

• Series I bonds will pay 4.3% annual interest through October, a drop from 6.89% in November, amid falling inflation.
• With the fixed portion of the rate at 0.9%, which stays the same after purchase, I bonds have become more attractive to long-term investors.
• But shorter-term investors may consider alternatives, such as certificates of deposits and Treasury bills.

 by Kate Dore, CFP® 

Read the full article with details on the dual aspects of I-bond rates at: 

https://www.cnbc.com/2023/05/01/series-i-bond-rate-falls-to-4point3percent-through-october-how-it-compares-.html