People always talk about their plans for retirement, and theyspend a good portion of their lives saving money in retirementaccounts so they can maintain their lifestyles in their lateryears. But planning for the future isn't just about retirementaccounts or what you want to do with all of your free time.

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According to financial experts, people also need to plan forwhat comes after their retirement—end-of-life planning.

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That means legacy and estate planning, life insurance, long-termcare and burial preparations.

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Many people don't want to talk about their own mortality, sothey avoid planning for it.

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The single biggest gap in legacy and estate planning iseducation, said David Richmond, president of Richmond Brothers, aregistered investment advisory firm in Michigan.

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“Do parents talk to their kids as they age about their money andhow it is going to come to them? Do we teach, as an Americanculture, how to give money away or how to manage money? It is nottaught in high school or college. It is not taught anywhere,” hesaid.

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Wealthier families have always taught these things because theyhave more money to pass down, but conversations about money shouldtake place in all families, regardless of income.

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Many people believe their future planning is complete if theydraw up a will, but it is much more complicated than that,especially for the affluent who have more money to pass on tofuture generations.

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When speaking with his clients, Richmond tells them they firstneed to plan for their now money, their later money and their nevermoney, or money they don't plan to touch during theirlifetimes.

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Estate planners draw up wills and trusts; accountants deal withtaxes and financial advisors handle clients' investments, but whoquarterbacks the legacy planning?

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If you are never going to need your never money, what is thebest way to inherit it? said Richmond.

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He speaks to his clients about how to protect their money fromtaxation so more money can be handed down to future generations. Hetalks about stretch IRAs and stretch Roth IRAs, which allow peopleto pass on their money to the next two generations. The money canbuild and grow for many years to come, if managed properly, hesaid.

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Another key component is educating your family. Richmond used aTiger Woods analogy to illustrate this point.

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The question he poses to clients is, do you want your childrento inherit your trophies and money or do you want them to inheritthe swing so they can go make their own money?

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“What we've done the last few years is give them trophies andnever teach them to swing. Only 3 percent of money lasts threegenerations or more. That is ridiculously bad,” Richmond said.”People don't know what to do with it or how to use it. We haven'tprepared them well.”

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Individuals need to meet with their families and discuss moneymatters from an early age. Children need to know what types ofcharitable giving their parents participate in and they need toknow where their money is and how it is managed so they will bebetter prepared to manage their own money and their inheritancewhen they get older, he said.

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Individuals need to make sure their documents are current. Theyneed to review them every so often to make sure that what peoplethink they will receive when they die is what they will actuallyreceive, said John McManus, founding principal at McManus &Associates, an estates and trusts law firm in New York.

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That means reviewing documents and walking through theirprovisions, deciding how they want to dispose of their assets andnaming representatives who will make sure their assets aredistributed as they intended.

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There is a catch 22, however. Many people don't realize thatbeneficiary designations on life insurance policies and retirementaccounts trump whatever is written in a final will andtestament.

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Many parents place one of their children on their accounts as ajoint account holder so they can help pay bills. What most peopledon't realize is that when the parent passes away, no matter whatis listed in the will, the person who is listed on the jointaccount will inherit that money. This can cause many problems amongother beneficiaries who believe they are entitled to their share ofthat money, McManus said.

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Each state has its own exemption when it comes to estate taxes.Some states, like New York, will allow individuals to pass down thefirst $1 million to heirs tax free. Anything above that $1 millionwill be taxed. McManus counsels his clients to gift that moneywhile they are still alive to avoid hefty taxation later.

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Life insurance and long-term care insurance are also optionspeople planning for their futures must consider, said MichaelBabikian, president and CEO of Transamerica Brokerage.

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Many government safety nets, like Social Security and definedbenefit pension plans, are disappearing, he said, and as peoplenear retirement and begin to plan, especially the Baby Boomers,“they are realizing that their children and grandchildren are notnecessarily going to have the same opportunities or safety netsthey've had throughout their lifetime.”

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Transamerica Brokerage offers an income protection option to itslife insurance policies, which allows the money to be distributedas a guaranteed income stream for up to 25 years instead of beingdoled out in a single lump sum.

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“We are finding a lot more interest in that,” he said. “What wefind is consumers know the issues they face, but they don't knowsolutions are out there.”

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He recommends people set up a living trust, but many peopledon't want to go through the rigorous process to do that. Many wantto maintain some level of control over their assets while keepingsome measure of flexibility, just in case they need that money inthe future.

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Long-term care policies are also a good idea. They helpindividuals plan for a time when they can no longer care forthemselves, but they don't want their financial resources to bedepleted because of an ailment toward the end of their life, hesaid.

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Stand-alone long-term care policies are popular, but Babikiansaid a hybrid plan his company offers is even more so. It offers along-term care rider to a life insurance policy. It is there if theclient needs long-term care in the future, but if they don't tapthose funds, the money can be paid out as part of their deathbenefit.

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Baby Boomers face difficulties in financial planning becausethey are in the “sandwich” generation. They are taking care ofelderly parents and boomerang children. Both of these things takeaway from their own legacy and estate planning.

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Younger generations will face additional challenges when itcomes to end-of-life planning. Most will rely on a 401(k) plan ortheir own savings to get them through retirement, rather thanpensions or government benefits. This opens up additionalopportunities for advisors who want to cater to the very differentoutlooks and needs of Generation X, Generation Y and theMillennials.

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